💡 Opportunities for DeFi in Africa 🌍

DeFi or decentralized finance is a new technological shift taking a sweep globally. More individuals, corporate institutions, and businesses across the globe are subscribing to the many channels of DeFi.

A lot can be tapped from decentralized finance for Africa, where a large percentage of its population is youthful and technologically inclined.

Some of the major opportunities DeFi offers the African continent include:

✓ It introduces cryptocurrency solutions that do not require third-party charges

The digital currency has become widely accepted across the globe. It started with a bold step by Satoshi Nakamoto in 2009 when he created Bitcoin. Ever since, we have seen the rise of other digital currencies like Ethereum, Litecoin, XRP, and others.

However, what is more important about these cryptocurrencies is their decentralized nature. You do not need the activity or regulation of any third party to transact in cryptocurrencies. These cryptocurrency solutions also mean you don't have to pay third-party charges.

The many charges an average person who owns an account with a classic banking system has to pay can be frustrating.

Decentralized finance introduces cryptocurrency solutions globally accepted, requires no third-party actions and charges, and is easy to carry out.

✓ It takes away the need for financial institutions to bring about freedom

One of the many clamors people in different African countries have is that of financial freedom. TherebyThe ability to decide what they want to do with their money and investment when they want to is what financial freedom is about.

Generally, one of the challenges faced with the traditional banking system is the structure.

DeFi takes away this challenge and replaces it with a more convenient one. You don't have to worry about the low banking levels of financial institutions in Africa any longer. You don't have to worry about the lack of financial data and the inability to access loans.

With the introduction, acceptance, and appreciation of DeFi, you can decide where you want your money to be if you want to trade it and get it when you need it.

✓ It allows for the transaction of digital assets on the blockchain

The operational cost of setting up bank branches in different locations is on the high side. However, beyond the cost of setting up the branches, there is also the need to maintain them. These are some of the reasons why many African banks don't set up banks in rural areas.

Some people have to travel a distance before they can access a banking hall and make transactions. This is why you have low interest and a high number of unbanked people in Africa. DeFi bridges that gap.

With DeFi, you can transact in digital currencies on the blockchain, which is a safer and more transparent option. You can register with any of the exchanges in Africa like Luno, Remitano, and Buycoins to create a wallet. With this e-wallet, you can trade or stack digital assets.

In fact, transactions in digital assets are carried out on the blockchain through smart contract activities, which means they cannot be altered. If you run an online store, you can integrate a payment structure that accepts these digital assets.