The attention of most crypto-related journalists is usually turned to Europe, USA or Asia, as most of the world’s crypto-related business is indeed done in those regions. There have been, however, some interesting developments in Africa, as we witness increasing bitcoin trading volume across the continent.
Paxful, a peer-to-peer crypto exchange, has been immensely popular on the African market, with $40 million worth of Bitcoin is bought and sold every month. According to Bitcoinist report, Paxful is “happy” to provide their services to severely underbanked population which is looking for a secure “online economic marketplace”.
People in the underbanked regions tend to have a different perception of crypto. They don’t think of it as a profitable investment; they rather perceive it as means of saving their capital in very unstable economical and political conditions. The volatility of local African currencies often exceeds bitcoin’s volatility, so bitcoin offers a store of value independent of the current political situation.
Ray Youssef, co-founder of Paxful, explained that the citizens buy cryptocurrencies to protect themselves from hyperinflation. He cited such examples as Nigeria where local fiat currency has lost 90% of its value to USD in two years. Bitcoin, on the other hand, rose 1,000% in 2017.
Entrepreneur and Natural Philosopher Ray Youssef welcomes the adoption of crypto by African community. In an article “Building Wakanda: CryptoCurrency is the Vibranium of Africa,” he writes “we are all on the verge of the P2P financial revolution and it is being led by Africa.”