Africa has become a hotspot for innovation in the cryptocurrency space. The number of startups utilizing next-generation mobile crypto wallet solutions is increasing more than before.

Such solutions utilize Artificial Intelligence (AI) as well as automation to re-engineer the method of interaction between Africans in the cryptocurrency space and the digital economy.

With such next-generation mobile crypto wallet development, the landscape of cryptocurrency and crypto wallets is forecasted to improve tremendously. This is because this advancement in technology allows developers to create more secure, efficient, and user-friendly wallets that can handle the unique requirements of the African cryptocurrency market.

AI and automation provide support technology that allows facial recognition, fingerprint scanning, as well as other means of authentication before any transaction is carried out. This has a great impact on limiting unauthorized access, scams, and fraud.

In a continent like Africa, where so many underserved populations suffer from immense poverty and lack of financial inclusion, a mobile cryptocurrency wallet with AI technology provides a way out. Now, Africans without bank accounts can get access to carry out transactions both within and outside the continent.

Most wallets also provide features for investing in cryptocurrency as well as earning interest on the holdings they own via staking and other means. Other features like peer-to-peer lending amongst other financial services also contribute to making the new generation of wallets very compatible with the African population.

How are AI and Automation Technologies Leveraged for Mobile Crypto Wallet Development Solutions?

AI-powered Security

With AI, new security features for wallets are no longer limited to facial ID recognition, as well as fingerprint scanning has become better. This goes a long way in protecting users from theft, scams, and fraudulent transactions.

One such project that is building something of this nature is the Advanced Project with their TIER App in Africa. TIER app is a blockchain multinational payment service for the unbanked and very soon, a facial recognition payment will be integrated into the app.

Automated Transaction Processing

With AI integration, transactions are faster and more efficient. This is because everything is automated and free of stress.

Fraud Detection

With AI, it is easier to create fraud detection algorithms that can help to not just detect, but also prevent fraudulent transactions.

This will further protect users from scams and other losses that can occur financially.

Personalized Financial Services

AI is being leveraged to provide more personalized services for mobile crypto wallet users. A typical example would be using AI to recommend the best investment opportunities or loans based on an individual’s credit and debit rating.

Account Creation and Onboarding

The process of verifying new users’ identity via KYC and all that can be made better with AI. This can further help to boost adoption into the Web3 space as the process of getting onboarded wil be streamless.

Security

AI helps to boost the security of cryptocurrency wallets. For example, it can be very easy to detect malware attacks and block any transaction that appears suspicious automatically.

Customer support

You need 24/7 automated support, you’ve got AI to help you with that. Now users can easily resolve any issue that stems from utilizing their cryptocurrency wallet almost immediately.

Security Benefits Of Leveraging AI in Mobile Crypto Wallet Development Projects

Anomaly Detection

When it comes to detecting anomalous behavior in transactions, AI can help in flagging even the most significantly large or small transactions. It can also help to detect when payment is being paid to unusual recipients.

Risk Assessment

Before making any transactions, AI can help to do a risk assessment of any token. It could be based on factors like the address of the sender and recipient, the contract address of the token, the day & time of launch, etc.

Information like this will greatly help to determine if one should go ahead with a transaction or not.

Fraud prevention

With AI, it is easy to integrate multi-signature and two-factor authentication for wallets.

Measurements like these can also help to protect users from allowing unauthorized access to their wallets or funds.

Security monitoring

With AI, continuous monitoring of the wallets is possible.

The era of multiple threats and vulnerabilities attacking wallets can easily be curtailed. This is because users will get notified when there's a need to take any preventive action or increase the defense available already.

This will help to assist in protecting the accounts and cryptocurrencies of users.

Future Outlook of AI: Crypto Wallet App Development

The future of AI and automation in cryptocurrency wallet development is very positive.

Here are some key pointers to a whole new world of AI+Cryptocurrency:

The use of AI for detecting anomalies in transactions as well as in fraud prevention will increase.
User experiences will be more personalized and based on higher intelligence. For example, AI can help to tailor a project worth investing in for a user based on their risk tolerance and investment goals.
AI will also help to give users real-time data on their financial health and spending habits.
There will be more methods by which AI can help to protect users' privacy and security.
AI will be used to boost the adoption of Web3 as well as increase financial inclusion. For example, there will be wallets that can be used in any language of the world, and by any people regardless of their access to traditional banking services.
There will be inbuilt structures that can guide new users on a step-by-step guide to set up their wallets as well as manage their assets. Throughout this, AI will contribute to boosting Web3 adoption globally.
There will be voice-enabled wallets with multiple language support that can be used by those with disabilities. Nobody will be left out.

African Projects that Have Succeeded in Fusing AI with Cryptocurrency

A few African projects have been able to tap into the wonder that AI usage brings when it comes to cryptocurrency and Web3 wallets.

Here are some of them:

Bitsika

Bitsika is an African company that aims to support financial inclusion. It provides access to finance in a very simple manner that people with no prior experience in cryptocurrency can easily adjust to.

After its launch in 2019, it was able to process over 1 million USD transactions in 3 months. This shows how much acceptance its seamless platform gained due to the high-quality technology and innovation it brought to the African community.

Luno

This is a South African mobile cryptocurrency wallet that offers high-tech security and automation for its users.

It features a “deep freeze” storage for its users. This entails utilizing a multi-signature wallet where the keys are generated and stored offline and offsite.

The keys are managed by Bitgo Custody and Fireblocks, two of the most secure and compliant digital asset custody providers in the world.

It also implements two-factor authentication, hashed format passwords, hot wallet for instant bitcoin transactions, amongst others.

As part of its features, it has a tailored website for each African region that makes use of it. I went to the website and was impressed when I got this prompt:

It also provides an automated way of investing whereby you just need to set up what you need and it automatically helps you invest in the future. Luno also incorporates an in-built tech support system for its users.

In addition, to further heighten its security measures, it has a Bug Bounty Program with top-rated researchers. This gives it the ability to be able to quickly detect bugs and be on top of security for its users.

Yellow Card

This is a Nigerian mobile cryptocurrency wallet that aims to make cryptocurrency accessible to underserved populations.

It offers automated transactions like fiat-to-crypto conversions, airtime purchases, etc.

Final Thoughts

African developers are steadily working to make crypto wallets more accessible and inclusive.

Some developers are working on making wallets capable of using multiple languages. Others are providing wallets that even the most underserved population can make use of.

These next-generation solutions can only get better with AI embedded as this would help not only to improve user experience but also to ensure security is never compromised.