“You don’t go where the ball is. You go where the ball is going to be,” Cardano founder Charles Hoskinson said in a speech during his tour of Africa last fall. In the meantime, more and more crypto messages are reaching us from the continent. It seems as if the “ball” has arrived there in the meantime.
While Africa has played a minor role alongside more crypto-offensive regions such as South America or the USA, funding for blockchain projects there is said to have increased by 1,668 percent within a year. That’s going out a report of the crypto venture capitalist CV VC out.
“There is no market where the growth and demand for inclusive and accessible financial services is more pronounced than in Africa,” said Ian Putter, Blockchain Lead, Founder and Regional Director of the Blockchain Research Institute Africa, default bench. “Blockchain technology will no doubt have a significant impact on African markets in the years to come.”
Funding for African start-ups in other areas has also increased by almost 150 percent. But the blockchain sector dwarfs that growth by 11x. According to the report, the top regions should have been Nigeria, the Seychelles, Kenya and South Africa.
Are BTC and Co. allowed in Africa?
The regulation on the African continent looks rather mixed. In total, crypto is legal in six countries, BTC and Co. is said to be indirectly banned in 27 countries, there is an absolute ban in four countries and there is still uncertainty in 17 countries.
According to the report, “legal” means that individuals and financial institutions are permitted to trade and hold cryptocurrencies. An indirect ban is said to exist if “banks or other financial institutions are not allowed to trade in cryptocurrencies” or offer corresponding services. An absolute ban refers to using, trading, mining and holding crypto. Meanwhile, “uncertain” means that not enough information was available to make a definitive statement.
Furthermore, central bank digital currencies (CBDCs) appear to be gaining traction in African countries. Kenya, for example, is toying with the idea of launching a corresponding currency. In Nigeria there is already one: the e Naira.