With blockchain on its way to becoming a central element in the next digital transformation of the global economy, one region yet to fully tap into the technology’s potential is Africa.

But that has begun to change in the last two years, with blockchain bursting onto the African Fintech (financial technology) scene, as adoption across the continent has accelerated.

“Africa is rapidly building a reputation as the hotspot of the crypto-tech world,” Gideon Greaves, Managing Director at Crypto Valley Venture Capital (CV VC) Africa, told TRT World.

“The current blockchain startup scene is booming!”

The distributed ledger technology of the blockchain creates new possibilities for transparent, decentralised and fraud-proof solutions. Cryptocurrencies, which are built on the blockchain, have drawn the most attention – but aren’t the only avenue for the innovation the blockchain offers.

Today, Africa is the third fastest-growing cryptocurrency market globally, steadily attracting large investments. Between July 2020 and June 2021, crypto adoption in Africa surged by over 1,200 percent.

Adoption rates are high in countries like Kenya, South Africa, Tanzania and Nigeria, where the lack of financial services infrastructure has boosted crypto ownership, alongside being a preferred alternative for storing and transferring assets. In April, the Central African Republic made Bitcoin legal tender, the second country to do so after El Salvador.

“Frontrunner countries like South Africa and Mauritius have demonstrated how a progressive stance toward cryptocurrency can be beneficial. This is the type of regulatory approach that inspires others to follow suit,” Greaves stated.

“As a regulatory consensus is achieved, the possibilities are even more exciting.”