Top Kenyan financial expert says that Africa could reap the benefits of crypto adoption

According to James Mwangi (CEO of Kenya’s largest banking conglomerate Equity Group Holdings), the African continent will significantly develop technologically and economically if it opens its arms to the digital asset industry. To do so, local authorities should cooperate with regulators, convincing them of crypto’s benefits.

Crypto Could be Africa’s Stepping Stone

Mwangi stated that Africa should participate in the fourth industrial revolution, in order to catch up with the rest. He believes cryptocurrencies are part of that transformation, and they can bring certain advantages to the domestic economy, such as “complement the mobile money:”

“Africa will benefit substantially from leapfrogging on the fourth industrial technologies, and cryptocurrency is one of them. Cryptocurrency can as well complement the mobile money wallet, but essentially, we need to talk to the regulators.”

According to the financer, mobile money transactions are much more popular in Kenya than traditional payment methods. Incorporating these new technologies into existing systems could help Africa become a competitive market.

“We are hoping that the use of technology, particularly data and artificial intelligence, will be a major basis of leapfrogging because we are not talking about existing manufacturing capacity, we are starting afresh.”

Many Africans lack basic financial access, which has accelerated the use of digital assets. Last year’s Luno survey revealed that 69% of the local crypto owners invested in the asset class to provide a better life for their families.

48% distributed their wealth to pay for their children’s future educational costs, while 43% said they wanted to establish a fund to pass on to their relatives.

The Central African Republic made bitcoin legal tender last month, thereby accelerating cryptocurrency adoption in Africa. This made it the second country in Africa, after El Salvador where bitcoin is the official payment method.

Kenya to become a Blockchain Hub

Kenya’s ambitions to hop on the cryptocurrency bandwagon are not new. It was a year ago that the country’s central bank looked at adopting bitcoin as legal currency to help its declining national currency. Njoroge, the Governor of Central Bank, spoke out on the subject.

“Our decision to shift to bitcoin is both tactical and logical… We are losing too much simply because someone at the IMF woke up on the wrong side of the bed. Bitcoin will put an end to it.”

The Near Foundation and Kenya’s Sankore joined forces earlier this month to create a blockchain hub. This unit will provide education in crypto to the locals as well as find people who are skilled in the field across Africa.

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