The crypto market is surging. $3.34 trillion, they say. Trillions! While headlines scream about Bitcoin hitting $108,485.60 and DeFi’s TVL climbing to $113 billion, a vital question lingers in the dusty marketplaces and bustling tech hubs of Africa: who really benefits from this digital gold rush? Is this revolution really inclusive, or is this just the next iteration of economic colonialism wearing a blockchain costume?

Are We Building Castles On Sand?

We see the glossy articles about young Africans leveraging crypto to bypass traditional banking systems, funding startups, and participating in the global economy. We continue to hear about how the use of NFTs can help artists and other creators monetize their work in new ways. Yes, those stories can be found and they will fill you with inspiration. Come on, they aren’t even close to the entire picture.

How many Africans can consistently connect to the internet fast enough to join this revolution? How many have the financial literacy needed to maneuver through a DeFi maze, full of risky, unproven tasks? This time, it’s important to prevent the persistent scourge of fraud. The emergence of zkFox, with an eye-watering 1,365,592,866% total value locked (TVL) increase, gets veteran investors excited. What does that actually mean for the average farmer in rural Kenya, who’s just trying to put food on the table? Absolutely nothing, if they’re unable to obtain the most basic of services—access to the internet itself.

We cannot in good faith usher in a crypto revolution that is laid on the back of inequity. It’s the equivalent of creating beautiful castles on sand – stunning and eye-catching, with every wave it’s doomed to fall apart.

The Shadow of Nobitex Looms Large

The cyberattack on Nobitex, Iran's largest crypto exchange, resulting in a $90 million loss, should serve as a stark warning. Although Iran is not located in Africa, the vulnerability it reveals is global in nature. Now imagine the havoc a breach would wreak on a much smaller African exchange. Consumers, already burdened by a lack of resources and lack of regulatory safety net, would suffer even more.

This isn’t only about the funding. It’s about establishing trust. These events undermine faith in the whole endeavor, especially for those who are naturally reluctant to adopt new innovations. We need robust security measures, transparent regulations, and educational initiatives to protect users and foster a safe environment for crypto adoption. We need to weigh against the promise with the possibility of a public outcry and outrage if widespread scams or hacks were to occur.

WLFI's $USD1 A Trojan Horse?

The rapid growth of stablecoins such as WLFI’s $USD1, with a daily trading volume of $1.25 billion, creates both opportunities and challenges. Stablecoins serve as a price stable currency in the volatile world of crypto assets. This aspect of their design accomplishes two things. First, it makes them attractive to risk-averse users. Conversely, who is actually profiting from these gigantic trading volumes? Are they building the capacity of local communities, or are they just serving to enrich massive corporations and more centralized entities?

We must avoid snake oil solutions that offer a path to easy fortune while reinforcing today’s power dynamics. Are these international efforts, such as Binance’s introduction of Dymension, really focused on benefitting users in Africa? Or are they primarily seeking to gain a foothold in a new market while seizing value and not delivering the requisite level of support or protection? We have to question ourselves if we are building a system that has Africans continuing to be consumers and not participants — and beneficiaries — of this new economy.

The global crypto market going up to the moon is mesmerizing. That can’t, of course, be at the expense of being inclusive. It cannot be done at the expense of the communities that it should be helping the most.

Let us help ensure Africa’s crypto revolution is here to stay in the long run. We hope it leads to some real, lasting change! Let's build a future where everyone has the opportunity to participate in the digital economy, regardless of their background or location. The time for action is now.

  • Support African-led blockchain initiatives: Invest in projects that are genuinely focused on addressing the specific needs and challenges of African communities.
  • Contribute to crypto education programs: Help provide access to quality education and training to empower Africans to navigate the crypto space safely and effectively.
  • Advocate for policies that promote financial inclusion: Push for clearer regulatory frameworks that protect consumers while fostering innovation and economic empowerment.

Let's ensure that Africa's crypto revolution is not just a fleeting trend, but a catalyst for genuine and lasting change. Let's build a future where everyone has the opportunity to participate in the digital economy, regardless of their background or location. The time for action is now.