Home > News > Editorial > Why isn’t the rapid spread of blockchain in Africa?
That’s the question I ask myself when considering the potential benefits of blockchain technology in Africa, especially since blockchain has the potential to dramatically change economies and societies across the continent in extremely beneficial ways. , Why isn’t adoption progressing rapidly?
Despite the increasing need for transition in both developed and developing countries, many developed countries are operating without blockchain, at least for the time being. However, Africa faces unique and pressing challenges that are unlikely to be effectively addressed without the solutions that blockchain can provide. Socioeconomically, African countries are on a very tight schedule to achieve real positive economic growth and ensure political stability for their predominantly youthful demographics.
So I think the answer as to why rapid adoption hasn’t happened is relatively simple. To date, no blockchain, or combination of blockchains, has demonstrated the ability to undoubtedly provide the necessary regional, continental, and global connectivity while meeting the specific needs of African countries. These kinds of connections are essential to addressing Africa’s challenges. It can create new opportunities, build markets, reduce corruption and streamline inefficient bureaucratic processes that slow development. Blockchains that exhibit these qualities are an obvious choice for adoption.
The BSV blockchain appears to be the most logical candidate to meet these needs among the various blockchain technologies available. Its unlimited scalability has the potential to process large transactions at low cost, making it ideal for Africa’s growing economies. The BSV blockchain can empower businesses, governments, and individuals alike by enabling microtransactions and promoting transparency. Additionally, the ability to integrate with existing infrastructure and build new digital ecosystems could help Africa overcome some of the barriers that currently impede technological progress.
However, the reality is that BSV still cannot provide the full functionality needed for an easy and transparent migration. However, this landscape is rapidly changing, with the emergence of first Teranode and then overlay networks and Simple Payment Verification (SPV), forming the basis of highly dynamic networks capable of massive throughput and customization. I am.
However, for Africa, one of the most relevant and essential features of the BSV blockchain, the ability to facilitate BSV micropayments, is now available.
Micropayments, or very small payments, often less than a cent, can revolutionize economic activity at the grassroots level. Micropayments offer a solution to financial exclusion in many African countries where traditional banking services are too expensive or unavailable to large parts of the population. This allows individuals to pay for goods and services in very small denominations, eliminating the need for costly intermediaries such as banks and payment processors. This could open up new economic opportunities for millions of people, allowing them to participate in the digital economy through mobile services, content creation, utility bills and microcredit.
For example, micropayments empower local entrepreneurs and creators, allowing them to gradually monetize their work. This is particularly relevant for sectors such as media, content creation and education, where a small donation can support a creator economy powered by local talent. Additionally, utilities such as electricity and water can be distributed on a pay-as-you-go model, where people pay only for what they use, making these services more affordable and accessible.
Another important component that blockchain provides is tokenization. Tokenization allows real-world assets such as land, precious metals, livestock, currency, and stocks to be digitized and represented as tokens on the blockchain. This is a game-changer for Africa, introducing new ways to manage, trade and secure assets. In regions where property rights and legal infrastructure are weak or vulnerable to corruption, tokenization creates transparency and verifiable ownership records. For example, through blockchain-based land registries, tokenized assets can reduce land disputes by providing a clear and immutable ownership ledger.
Tokenization also facilitates fractional ownership. This means that large, valuable assets can be divided into smaller tradable units. This is particularly important for African countries, where many people may not have the resources to invest in owning real estate or expensive assets outright, but may benefit from owning a portion. . This can apply to real estate, infrastructure projects, and even goods. Through fractional ownership, individuals and communities can invest in projects that were previously out of reach, thereby building wealth and improving their economic status.
Additionally, tokenization could enable new forms of financing, such as tokenized bonds and equities, revitalizing African capital markets. Entrepreneurs and small businesses can use blockchain-based tokens to raise capital in a more transparent, efficient and inclusive way than through traditional financial institutions, attracting both local and global investors. can attract.
A particularly promising development in this area is the Uganda Shilling Stablecoin (UGXC), a project started by Uganda Blockchain Association Chairman Reginald Tumusiim and Kite Financial founder Patrick Prinz. The stablecoin is built on the BSV blockchain and represents a major step forward for financial inclusion in Africa. The BSV feature brings new value to the Uganda Shilling currency, with the benefit of having micropayments with super-fast 24/7 payments available in other parts of the African region and around the world.
Uganda’s adoption of UGXC could boost remittances, e-commerce and cross-border trade by reducing currency conversion costs and transaction fees, and serve as a gateway to broader African blockchain adoption. You can expect that. Additionally, stablecoins’ ability to integrate with mobile payment platforms and other financial services can help bridge the gap between traditional financial systems and the digital economy. This is particularly important in Africa, where we have seen how mobile money services like M-Pesa have changed the way people process transactions and payments. UGXC can offer far more services than M-Pesa and has the potential to revolutionize payments across the region.
In summary, it is not Africa’s fault that blockchain has not yet been actively adopted. As in other parts of the world, blockchain’s potential remains elusive in terms of providing a viable solution at sufficient scale. But the BSV blockchain is at a level of scale where products like micropayments, tokenization and the Uganda Shilling stablecoin offer practical tools to address some of Africa and the world’s most pressing challenges. This situation is rapidly changing as we achieve our goals. The BSV blockchain will help build a more inclusive and transparent economy by significantly reducing transaction costs, improving financial inclusion, and new ways to own and trade assets. Now, all we need is more leaders like Reginald Tumusiim and Patrick Prinz to bring true blockchain-based solutions to those who need them most.
Watch: Boosting financial inclusion in Africa with BSV Blockchain
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