The Silicon Savannah: exploring the promise of cryptocurrency in Africa

Abstract

One of the primary motivations behind Bitcoin and other blockchain-based cryptocurrencies has been to disrupt the monetary status quo by providing individuals with faster, cheaper, and more secure forms of money. The potential benefits of providing superior private monies as an alternative to national currency monopolies are especially pronounced in the developing world, where citizens often suffer under poor monetary institutions and unreliable - and often inaccessible - financial services. No region has suffered more from poor quality monetary institutions than Africa. This chapter examines the potentially bright future of cryptocurrency in Africa. Over the past decade, Africa has been the epicenter of the "mobile money revolution." Although its cryptocurrency uptake has lagged behind other regions, I outline why Africa is perhaps the most promising frontier for the widespread adoption of cryptocurrency. I also discuss the opportunities and challenges that crypto startups face in the region.