{"id":112405,"date":"2020-11-15T18:00:00","date_gmt":"2020-11-15T15:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/can-blockchain-make-a-difference-africa-sees-vast-monetary-potential\/"},"modified":"2020-11-15T18:00:00","modified_gmt":"2020-11-15T15:00:00","slug":"can-blockchain-make-a-difference-africa-sees-vast-monetary-potential","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/can-blockchain-make-a-difference-africa-sees-vast-monetary-potential\/","title":{"rendered":"# Can blockchain make a difference? Africa sees vast monetary potential"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a264a8019133\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a264a8019133\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/can-blockchain-make-a-difference-africa-sees-vast-monetary-potential\/#Potential_for_the_biggest_impact\" >Potential for the biggest impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/can-blockchain-make-a-difference-africa-sees-vast-monetary-potential\/#The_road_ahead\" >The road ahead<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Can blockchain make a difference? Africa sees vast monetary potential <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvMTkzZDQ5YjktZDBhMy00ZGZiLThhYTYtMjBiYzAyYzVjNzE0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>As technological innovations continue to spread across Africa, the continent could provide some unique use cases for blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. African has been continually driving <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.entrepreneur.com\/article\/358932\">innovation<\/a> in a number of spaces, with mobile payments a prime example of the potential for technology to drastically improve the lives of everyday Africans.<\/p>\n<p>While many countries in Africa are still considered to be developing economies, some of its most prominent states have been at the forefront of technological innovation. The use of blockchain technology is becoming part of the equation as it permeates different industries and institutions.<\/p>\n<p>Michelle Chivunga, CEO and founder of digital economy and blockchain solutions group Global Policy House, as well as an advisor to the governments of Bermuda, the African Union and the United Kingdom, told Cointelegraph:<\/p>\n<blockquote><p>\u201cCountries in Africa including Ghana are looking into using blockchain for land registry and many countries at digital identity, provenance in supply chains, healthcare and financing. E-commerce and fintech are major drivers of the digital economy in Africa. I see this growing and paving the way for more blockchain activity.\u201d<\/p><\/blockquote>\n<p>Victor Mapunga, a Zimbabwean blockchain entrepreneur who co-founded FlexID \u2014 a blockchain-based digital identity solution wallet <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/algorand.foundation\/flexid-by-flexfintx-development-award\">running<\/a> on the Algorand protocol \u2014 told Cointelegraph that infrastructure powering the use and trade of cryptocurrencies has been a major driver of blockchain technology across the continent, but a plethora of use cases are already being explored:\u00a0\u201cThere is still a lot of work to be done, so far peer-to-peer and centralized crypto exchanges have been the predominant flavor.\u201d<\/p>\n<p>Cape Town-based software developer and smart contract engineer Stephen Young, the founder and CEO of decentralized finance platform NFTfi \u2014 a peer-to-peer marketplace for nonfungible token collateralized loans \u2014 told Cointelegraph that cryptocurrency onboarding infrastructure like centralized and P2P exchanges have rolled out efficiently in different African countries and is the most prominent use of blockchain technology on the continent. He added that the potential uptake of DeFi platforms could be on the cards in the next year:<\/p>\n<blockquote><p>\u201cOver the last few years, the infrastructure that allows people to purchase and trade cryptocurrencies have come a long way. This, combined with informal peer-to-peer trading, makes it possible for many more Africans to get hold of cryptocurrencies.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Potential_for_the_biggest_impact\"><\/span>Potential for the biggest impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Peter Munnings, a former ConsenSys engineer who co-founded decentralized liquidity management and international payments firm Adhara in 2018, pointed out to Cointelegraph the potential of improved cross-border settlement through blockchain solutions on the back of his experience working in the South African banking sector, \u201cAcross Africa, settlement is slow and complicated because of the lack of liquidity.\u201d According to him, most intra-African settlements are still undertaken through the United States, adding, \u201cGoing from Kenyan shillings to Tanzanian shillings through USD is always going to be slow and complicated.\u201d<\/p>\n<p>Munnings highlighted that a couple of projects are looking to overhaul this space, such as the Pan-Africa Payment and Settlement System and Fnality, which are actively collaborating with local governing bodies. According to him, JP Morgan has also been active in the space: \u201cHaving a commercial bank embedding the USD leg on all transactions (even if they are quick, simple and transparent) runs the risk of heading down the low road \u2014 or at least limiting the ability to create direct FX markets between African currencies.\u201d<\/p>\n<p>Young pointed to the potential to improve transactions between countries while also adding that people could potentially earn a livelihood from some cryptocurrency <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> platforms, which is a less obvious way to get paid. He added: \u201cThe obvious answer here is cross-border remittances. That and having hard money available as an exit option from the corruption and terrible monetary policies imposed on many Africans by their governments.\u201d<\/p>\n<p>Chivunga believes that blockchain technology could become an important catalyst for transforming some major industries across Africa. She identified challenges around land registry, identity, pharmaceuticals\/healthcare and counterfeit goods\/drugs as primary candidates for blockchain-based solutions.<\/p>\n<p>Chivunga also highlighted the upcoming implementation of the African Continental Free Trade Area as an opportunity for blockchain to play a \u201cmajor catalytic role\u201d in supporting greater transparency, visibility and inclusivity across supply chains. She also hopes to see blockchain help disrupt wealth inequality across the continent and provide greater access to transparent and accountable financing:<\/p>\n<blockquote><p>\u201cAn area I am passionate about is the opportunity blockchain presents to decentralize access to wealth to support greater financial inclusion and support especially for micro, small and medium enterprises; they make up at least 80% of businesses in Africa yet so under-resourced.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_road_ahead\"><\/span>The road ahead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As blockchain solutions are slowly being explored and developed to address uniquely African challenges, the potential for greater influence seems almost limitless. As Munnings told Cointelegraph, the continent is already leading the way in terms of cryptocurrency adoption, according to a <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.statista.com\/chart\/18345\/crypto-currency-adoption\/\">survey<\/a> from Statista carried out in August 2020:<\/p>\n<blockquote><p>\u201cAfrica has another benefit in that it doesn\u2019t have a lot of legacy systems in place that are already working. Kenya\u2019s adoption of MPESA was less around how good MPESA was and more around the lack of any other alternative. While first world countries have payment systems (credit card infrastructure) and highly liquid currencies, fast settlement times etc., Africa has very little of that.\u201d<\/p><\/blockquote>\n<p>Mapunga echoed Munnings\u2019 sentiments on the lack of existing legacy infrastructure but outlined that now, African universities are more willing to try using digital credentials like degrees and diplomas. Indeed, education is a very important component to help the proliferation of blockchain technology and its potential <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication for Africa\u2019s most pertinent challenges. Chivunga stressed that it\u2019s not an answer to every problem, but understanding its capabilities will be key to adoption.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Blockchain Africa Conference: Education Is Key Crypto Adoption Driver<\/em><\/strong><\/p>\n<p>Overall, there are a number of challenges standing in the way of innovation, including digital connectivity, infrastructure issues, access to affordable data, greater education and awareness, according to Chivunga:<\/p>\n<blockquote><p>\u201cAs the foundations are strengthened, I think Africa will see more solutions developed not only with blockchain but a convergence or mix of technologies. Africa can actually drive greater adoption, avoiding the legacy challenges, and designing solutions that are homegrown could benefit Africa significantly.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/can-blockchain-make-a-difference-africa-sees-vast-monetary-potential\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Can blockchain make a difference? Africa sees vast monetary potential &#8221; As technological innovations continue to spread across Africa, the continent could provide some unique use cases for blockchain technology. African has been continually driving innovation in a number of spaces, with mobile payments a prime example of the potential for technology to drastically&#8230;<\/p>\n","protected":false},"author":1,"featured_media":112406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/193d49b9-d0a3-4dfb-8aa6-20bc02c5c714.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,76358,74355,25562,72602,73625],"class_list":["post-112405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-nigeria","tag-adoption","tag-africa","tag-south-africa","tag-zimbabwe"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/112405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=112405"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/112405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/112406"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=112405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=112405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=112405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}