For a long time, African countries have suffered from infrastructure problems in all industries, and it takes a lot of time and money to build infrastructure in each industry. On the one hand, this is the basis for providing innovative services in new technologies. For example, in the telecommunication field, developed countries moved to wireless phones after cleaning up their wired phone infrastructure, but since African countries do not have a wired phone infrastructure, the distribution of smart phones is more efficient and quicker expansion is possible.
The field where this can be most actively applied is the financial sector. In particular, the crypto market centered on blockchain provides new innovations and possibilities to African countries. Tokenization of fiscal flows is much cheaper than building a country. Behind the scenes, the process itself can spur the growth of real assets.
Several African countries are making these attempts. Africa is the second most populous continent in the world with a population of about 1.3 billion. African countries have long struggled with infrastructure problems due to colonialism, civil wars, and historical problems associated with harsh terrain. This has reduced access to financial services, leaving about 57% of the population without banking.
At the same time, its outdated infrastructure makes Africa the perfect vector for cryptocurrencies that require only a smartphone to access a blockchain network. Among African countries, Nigeria, in particular, has become the vanguard of the use of cryptocurrencies around the world. According to Chain Analytics, between July 2020 and June 2021, $105.6 billion of cryptocurrency assets were traded, with a growth rate of 1,200%. Africa has been reported as the region with the most active P2P transactions in all regions of the world.