Cryptocurrencies have been under great scrutiny by authorities and citizens alike for their real-world use cases. Perceived to be complex, cryptic and prone to scam fraud, cryptocurrencies have faced the brutal dismissal of notable influential voices, and the admiration of some who find them valuable contrary to populist opinions. Education and sensitization are currently ongoing at various levels from community to corporate and government level engagements by multiple groups on the continent to highlight the opportunities availed by these tools.
The potential locked in cryptocurrencies is interesting to explore and it is important to appreciate that cryptocurrencies are presently past their potential level, and there are daily use cases worth examining for a better understanding of their impact. This article will examine four current use cases of cryptocurrencies in Africa.
Payments and Remittances
A shopper hands money to a vendor.
Between June 2020 and June 2021, US$105.6 billion was sent to Africa in cryptocurrency payments. According to Chainalysis, this was a 1200% growth rate compared to the previous year. What makes it notable was that this was arguably the period marked by the highest economic uncertainty in recent decades. Amid job losses and disruption of trade dynamics, people explored viable ways to keep their income and livelihoods afloat.
The 1200% growth, in spite of government bans and restrictions on cryptocurrency…
