Ask any web3 enthusiast and they’ll tell you: Crypto is the future of money. Blockchain believers see the technology as the natural evolution of interchangeable currency. Frankly, history does seem to back up elements of this belief, as money has evolved through millennia to more interoperable and transparent forms, both intrinsic qualities of blockchain technology. Crypto may very well be the future of money—and in Africa, this future will be marked by a steep adoption of the machinery that powers crypto: blockchain technology.

At the just concluded Africa Tech Summit, which drew in thousands of operators and tech stakeholders from across Africa and the world to Nairobi, a glimpse of that future could be seen. Crypto-powered startups had the most representation among startups that powered payments and settlements for individuals and businesses. Within those walls, crypto was not regarded as a secret that had to be tiptoed around; it was the technology that made it possible for these businesses to serve the millions of Africans they currently serve.

“We don't use crypto directly—or announce that we use crypto—because of the many regulatory uncertainties around it,” one founder of a B2B payments startup said to me, choosing to be anonymous for this article. “But crypto is our lifeline, man. We are connected directly to Circle Mint and that’s how we process large FX demands for the businesses we serve.” Circle Mint is a solution for accessing wholesale USDC tokens.

Crypto’s reality in Africa is more than a fancy technology; it’s a survival strategy for players who must interface with the world. Widespread access to the US dollar, which essentially functions as the common denominator for commercial exchanges across the world, is sorely lacking in Africa, driving nations in the region to crises as investors second guess when dealing with countries with unstable dollar reserves or liquidity.

The dollar scarcity, however, is only real in the fiat world. USD stablecoins, which are tokenised dollars loaded onto blockchains, are ubiquitous, easy to access, and efficient for global trade. Tired of stooping for dollar crumbs at banks, African businesses processing global accounts and payments for their clients have turned to stablecoins such as USDC and USDT, which enable seamless value transfer at fees unthinkable with traditional finance systems.

“How does the CBN expect me to survive on $20,000 a quarter? That’s barely enough for anything.” the earlier referenced founder said to me, referring to the apex bank’s Form Q requirements. “But with crypto, I can move local currency to stablecoins and subsequently off-ramp in dollars or whatever currency my suppliers demand.”

Internopay, a Nigerian startup that claims to have processed billions of dollars worth of transactions, was also present at the event, preaching the gospel of crypto for global payments. Its business model is simple: on-ramp local currencies, off-ramp yuan or dollars.

Stablecoins for remittances is another huge use case in Africa, Shogo Ishida, co-CEO of Emurgo Africa said in an ATS panel session dubbed Web3: Building the Future. “Unlike the fiat average of 20%, it costs much less [typically lower than 1%] for the African diaspora to send money back home, enabling families to get more value from remittances,” he said. A Chainalysis report last year showed how Africans are already flocking to stablecoins and Bitcoin to hedge inflation and currency devaluation. The ongoing free fall of the naira and other African currencies suggests strongly that this trend will continue.

Crypto aside, where’s web3 in Africa?

Web3 does not start and end with crypto, although that’s a critical part of it. The third iteration of the internet involves products, tools and services that are domiciled on blockchains, offering Africa the technology to leapfrog some of its native problems. While crypto is solving finance hassles, other applications of blockchain technology can offer respite to some of the continent’s core issues.

“We’re investing and accelerating blockchain startups that are solving pain points in the African economy,” said William Phelps, Venture Lead at Adaverse, on the panel with Shogo Ishida. “We also connect our portfolio companies to international investors which may not have had inroads into the continent,” he said. Speaking on the exciting solutions his team has backed in recent times, Phelped highlighted FonBnk, which bridges stablecoins to telco infrastructure and mobile money; Kotani Pay, which solves last mile payments by bridging crypto with USSD technology; and Momint, a South African upstart selling NFTs as tokens of real-life projects that can appreciate.

Yvonne Kagondu, co-founder of ICP Kushites, a regional body driving the adoption of the Internet Computer Protocol (ICP) in Kenya, was also present on the web3 panel. “Time and again, Africans have proven that when given the chance, they can lead the pack. Of the 25 ICP hubs globally, East Africa represents the second largest contributor to the network. We are building a network that is spinning out innovative solutions on the continent,” she said.

Africa is primed for web3 adoption. The continent’s communal structure and inherent problems are well-suited for blockchain-based solutions. A continent comprised mostly of young people, many of whom are fiercely embracing crypto, the future of technology in the continent can only be imagined as decentralised. This is a picture the existing data paints, a picture so clearly depicted as stakeholders gathered last week at Sarit Expo, the Nairobi mall that welcomed the world of African tech.

Editors Note: NODO, a product discovery and marketing platform, was part of the sponsors of the Africa Tech Summit. Speak to us at Caleb@nodo.xyz to learn how we can accelerate media and user onboarding efforts for your startup.