THE CRYPTO CRED

AS TRADITIONAL BANKING REMAINS OUT OF REACH FOR MANY STILL UNBANKED AND UNDERSERVED IN AFRICA, IS CRYPTOCURRENCY SLOWLY BEGINNING TO TAKE A SHARE OF AFRICAN WALLETS?

- TAMSIN MACKAY

The continent is anticipated to reach $2.9 billion in cryptocurrency revenue this year, and this growth is only going to grow exponentially as crypto becomes increasingly relevant to a digital-savvy population that's distrustful of traditional banking services. In 2022, the World Bank reported that well over 50% of adults in 16 economies across 36 surveyed have a bank account. While account ownership has increased, the continent remains a financial playground where innovative solutions and transformative approaches to money management flourish.

Mobile money, says the World Bank, has redefined financial inclusion in countries like Kenya - M-PESA, for example, is the continent's biggest success story and the lingo around its transactions has crept into local dialect.

And cryptocurrency, says the 2024 Geography of Crypto Report by Chainalysis, has equally found its footing in developing economies where millions opt into alternative banking and financial management solutions. The report found that sub-Saharan Africa is currently in the lead for decentralized finance (DeFi) adoption because people are craving accessible financial solutions and while the region only accounts for 2.7% of global cryptocurrency transaction volumes, Nigeria comes second in global cryptocurrency adoption while Ethiopia, Kenya and South Africa made the top 30. Middle East and North Africa (MENA) account for 7.5% of global transaction volumes and was the seventh largest crypto market in 2024.

In these markets where crypto opens up doors often held shut by traditional banking systems, these digital assets have evolved to become essential to economic survival.

No longer just for use by wealthy investors exploring crypto's potential on a digital playground, these currencies are being adopted by digital-savvy users from informal sectors who want to bank, invest and spend within a trusted and accessible ecosystem.