The COVID-19 pandemic shook the world by storm. Caused by the SARS-CoV-2 variant of coronavirus, COVID-19 spreads like wildfire through physical contact and is airborne through nasal/mouth fluid. The pandemic called for an international state of emergency, with economies shutting down their borders to domestic transportation to ameliorate the fatalities from the virus, leading to one of the biggest international lockdowns in the recorded history of humankind.

The COVID-19 pandemic had a remarkable impact on every country, including first-world nations. Africa, especially, was stirred by the pandemic. However, digital assets came to the aid when they were needed the most and acted as vital tools in mitigating the effects of the pandemic on the African populace.

Before diving into the immeasurable impacts digital assets played in suppressing the effects of the pandemic on Africa, let us look at what digital assets are.

As defined by the IRS, digital assets are broadly any digital representation of values recorded on a cryptographically secure distributed ledger or similar technology. Digital assets, which have an indefinite-lived intangible assets nature, include but are not limited to convertible virtual currency and cryptocurrency, stablecoins, decentralized finance (DeFi), Central Bank Digital Currencies (CBDCs), and Non-Fungible Tokens (NFTs).

Having looked at the meaning of digital assets, let's explore how digital assets play a pivotal role in cushioning the effects and providing solutions to challenges posed by the coronavirus pandemic.

Digital Finance

Africa adopted contactless digital financial services as a rapid response to the financial crisis caused by the spread of the COVID-19 pandemic. Although they gained recognition in the fintech ecosystem before the pandemic, digital payment platforms became an essential tool for contactless transactions and financial inclusion during the pandemic. M-Pesa in Kenya, Opay, and Kuda MFB in Nigeria, amongst the others came in at a critical time and helped in facilitating financial services without physical contact.

The use of these digital finance tools not only helped in drastically reducing the instances of physical contact but also ensured the continuity of economic activities. In addition, it helped in establishing the digital finance framework in rural communities which were previously underserved by the continent's financial infrastructures.

Remote Learning and EduTech Innovation

Due to the imposed lockdown, educational institutions had to put a hold on every physical academic activity.

Digital academic assets filled the vacuum and the educational sector could operate without major glitches. Educational institutions created LMS (Learning Management System) portals, and use ZOOM, Jamboard, and Google Meet platforms for live classes. Individuals also made massive use of Coursera for upskilling.

Digital assets facilitated teachers' training programmes, providing educators with resources to adapt to the renowned digital learning environment. Although the ecosystem experienced internet connectivity challenges, digital assets tied to edutech were integral in helping people navigate the novelty caused by the lockdown.

E-Commerce

With restrictions in movement, e-commerce platforms experienced an increase in the volume of patronage. E-commerce businesses offer a variety of services from selling their products/services to connecting vendors and their customers providing a source of sustenance for many during the pandemic. This digital commerce platform has also enabled customers access to essential articles from the comfort of their homes.

Digital Health Innovation

The pressure on the healthcare system during the pandemic resulted in the emergence of innovative telehealth services across the continent. The system saw the creation of mobile applications which enabled individuals to access remote healthcare consultations and rich medical information from the comfort and safety of their homes.

Also, countries like Rwanda leveraged drone technology for contactless delivery of medical supplies and test samples. This was a huge point towards the continent’s flexibility to innovation scoresheet.

Finally…

The COVID-19 pandemic challenged the Pan-African digital assets ecosystem and exposed its weaknesses as well as its potential for future innovative and technological breakthroughs. The pandemic undoubtedly catalyzed the acceleration of the continent's digital transformation. For the future, harnessing the power of digital assets will be crucial in shaping Africa’s future.