Although each person in the crypto sector has their own unique experience, one thing is certain: "crypto is always evolving" and digital currencies like Bitcoin are no exception, says OKcoin. Every day, new initiatives are launched, and web3 solutions for conventional problems are updated. As realistic as it may sound, not every project in the sector is genuine, and not every legitimate initiative has withstood the test of time and stood against forces like Gary Gensler and the SEC organization. This does not render such ventures fraudulent; rather, it presents a chance for reconsideration and evolution.

“Though literally thousands of projects have yet to land on broadly adopted use cases, I remain intrigued by Satoshi’s innovation’s potential to spur change – either directly or indirectly as a catalyst. The potential to lower verification and networking costs is worth pursuing, particularly to lower economic rents and data privacy costs, and promote economic inclusion." - Gary Gensler.

However, by the same token, investors in such projects often lose money.

The Cryptocurrency Landscape in Africa

Africa is still a developing continent, but the crypto industry has made a significant contribution to the continent's economic development and professional setup. A ripe crypto ecosystem is present in Africa. (Chainalysis). It is imperative to comprehend the factors affecting this multicultural continent's growing interest in cryptocurrency.

Read: Crypto-currency adoption in Africa: The ups and downs | Africa Renewal (un.org)

1. Financial Inclusion: My funny opinion about Africa is the fact that poverty will keep ravaging the continent without crypto. Achieving financial inclusion is one of the major reasons for the growth of cryptocurrencies in Africa. The majority of people in Africa cannot access traditional financial services for lots of reason including lack of educational facilities . Cryptocurrencies right now are a unique option, which enables anyone to use a smartphone and an internet connection to access financial services, send and receive money, and engage in the global economy even with the so called "Nokia Touch" .

check: https://twitter.com/Valucop/status/1717114637148099041?t=1iRlBlwQPYUM1FIVJdgDdg&s=19

2. Remittances: As a Nigerian, I can tell how much breakthrough it is when you get funding from relatives located overseas. Many African families depend on money provided by relatives who work overseas, which contributes significantly to the continent's economies. High costs and protracted processing times are common features of traditional remittance systems. Transacting money internationally can be done quickly and affordably with cryptocurrency especially with technologies introduced by Solana on seamless and quick transactions with less Gas fee. This in return, could increase the amount that families get.

3. Hyperinflation and Currency Devaluation: A number of African countries have experienced these two economic battles. But unlike other currencies, Cryptocurrencies have emerged in these situations as a hedge against the depreciation of fiat money and as a store of value. Storing funds in Dollars might avoid depreciation of your Fiat but crypto currencies store value and same time capable of increase its value.

4. Young Population: African continent is just ripe for crypto and Africa is home to a young population that are so tech savvy and always welcoming financial innovations. The adoption of cryptocurrencies in Africa is primarily driven by the young population.

5. Innovation and Entrepreneurship: Vividly, African devs are actually most active in this Blockchain and cryptocurrency initiative.These guys tend to develop dApps which are meant to tackle a number of issues, including identity verification, property rights, and supply chain transparency.

Despite all the advantages that cryptocurrency has brought to our continent, governments and other established institutions continue to resist it. I wonder whether they're ranting? Or do their arguments actually have a basis? The idea of cryptocurrency is still in its early stages of adoption, but consider this African proverb: "What an elder sees sitting, a lad cannot see even when he climbs a mountain." Like other African nations, experts in Nigeria banned cryptocurrency for the following reasons:

High volatility, prone to manipulation, absence of regulation, and a recent spate of fraud and scam cases.

Read: Letter to Banks on Crypto (2).jpg (cbn.gov.ng)

Is cryptocurrency actually bad for Africa, despite everything that established institutions and governments have said about its purported "evils"? Was it designed to steal from us, or is it just more loot? Someone really owes Africa an explanation, but given the mindset of African countries, I think it's safe to say that these legislators and leaders are concealing the truth from the country's youth because a growing number of financial institutions in the continent are currently working with cryptocurrency projects.

Read: How Can Top 10 Crypto-Friendly Banks in Africa Help Push Massive Crypto Adoption? | Cryptopolitan

Let’s discuss some benefits to take into consideration while thinking about cryptocurrency for Africa, though there may still be drawbacks at this early stage of the developing endeavor.

Opportunities and Benefits of Cryptocurrency in Africa

Let's talk about the Possibilities and Advantages of Cryptocurrency in Africa

In the African setting, cryptocurrency presents a number of possible advantages and prospects.

1. Including those who are unbanked—those who lack access to banks, loans, or even a basic understanding of finance—in the official financial system so they can use DEXs and DeFi to save, invest, and obtain credit.

2. If implemented, projects like Solana can drastically lower the costs involved in sending and receiving remittances, boosting the value of cash for receivers. These projects have worked toward a very minimal level of transaction fee.

3. You can take it to the bank that the use of cryptocurrencies will promote technical innovation! And by using their own initiative to develop dApps and other web3 projects, African developers and entrepreneurs may be able to contribute to the global blockchain ecosystem.

4. By reducing transaction costs and removing the need for currency exchange, cryptocurrency can make international trade easier. P2P could potentially address this issue.

The Future of Cryptocurrency in Africa

Although the future of cryptocurrencies in Africa is uncertain, there is a lot of potential. We must continue educating people about cryptocurrencies and how to participate in them if we are to maximize their potential while lowering hazards. Bravo to groups like Valucop Global that are actively working on these issues.

Conclusion

In Africa, cryptocurrency offers both opportunities and challenges. Financial inclusion, lower remittance costs, and economic stability are among the benefits it promises, but there are also issues with regulation, security, and education. In order to fully utilize cryptocurrencies in Africa, governments, businesses, and the international community must work together. Cryptocurrency has the potential to revolutionize economic empowerment and innovation throughout the continent if it is handled with care and protected by appropriate policies.