Paxful CEO on how crypto trading platforms are empowering the unbanked in Africa

The rise of cryptocurrencies has given birth to a new wave of platforms allowing individuals to buy and sell digital currencies with ease. Paxful is one such platform that has emerged as a game-changer in this space. Founded in 2015, Paxful has seen exponential growth and is making huge strides in empowering the unbanked population in Africa and beyond. Ray Youssef, the Co-Founder and CEO of Paxful, shed light on the company's journey and the impact it is having on financial inclusion during an interview with CNBC Africa. Youssef spoke about how Paxful started as a small project run by two individuals in New York and has now evolved into a thriving business that is filling the gap left by traditional banks. According to Youssef, cryptocurrency has the power to provide financial access to anyone on the planet, regardless of whether they have a bank account or not. In regions like Africa and Southeast Asia, where financial exclusion is rampant, the freedom offered by cryptocurrency is opening up new possibilities for individuals. The CEO highlighted the significant growth Paxful has witnessed across key markets like Africa, China, and India, and emphasized that they are just scratching the surface in terms of their potential impact. In response to the COVID-19 pandemic, Youssef noted that Paxful saw a 25% increase in growth as people sought alternative ways to generate income and wealth while being stuck at home. One of the key factors driving interest in Paxful from countries like Nigeria and Kenya is the platform's ability to address real-world financial challenges faced by individuals in these regions. Youssef explained that through engaging directly with the communities and understanding their financial needs, Paxful has been able to tailor its services to cater to the unbanked and underbanked populations. Youssef emphasized that Paxful's goal is not to replace traditional financial institutions but to work collaboratively with them to create a more inclusive financial ecosystem. He highlighted the seamless access that platforms like Paxful provide to various financial networks globally, enabling individuals to transact easily and efficiently. Addressing concerns around regulation and customer protection, Youssef stressed that Paxful is committed to complying with regulations and working closely with regulators to ensure a safe trading environment for its users. He also dispelled the myth that cryptocurrencies are primarily used for illegal activities, emphasizing that the vast majority of Bitcoin transactions are legitimate and secure. Looking ahead, Youssef expressed ambitious growth plans for Paxful, driven by the untapped potential in markets like Africa. With a user base of 1.5 million in Nigeria alone, Paxful sees immense room for expansion and aims to empower more individuals with access to financial services through cryptocurrency trading. In conclusion, Ray Youssef's insights shed light on the transformative power of cryptocurrency platforms like Paxful in driving financial inclusion and empowerment, particularly in regions where traditional banking services fall short. As Paxful continues its mission to democratize finance, the future looks promising for the unbanked and underbanked populations in Africa and beyond.