What is the future of cryptocurrencies in Africa?

Cryptocurrencies are becoming a prominent topic of discussion in Africa, with many experts and entrepreneurs touting it as the new mobile money. The industry has seen a significant uptick in interest and adoption, prompting a debate on its future prospects. Joining CNBC Africa to delve into the trends and opportunities in the cryptocurrency space in Africa are Gideon Greaves, the Managing Director of Crypto Valley Venture Capital Africa, and Farzam Ehsani, the CEO and Co-founder of VALR. The discussion kicked off with a quote from Bill Gates at the TechCrunch conference where he referenced NFTs as an asset class. The debate revolved around the potential of cryptocurrencies and their role in reshaping the financial landscape in Africa. Gideon highlighted the complexity of the cryptocurrency ecosystem, emphasizing the various use cases of blockchain and web3 technology. While acknowledging the speculative nature of some crypto assets, he emphasized the need for price discovery and regulatory clarity. Farzam echoed Gideon's sentiments, underscoring the transformative potential of cryptocurrencies to empower creators and facilitate seamless cross-border transactions. The conversation then shifted to the practical implications of cryptocurrencies in Africa, particularly in the realm of international remittance. Both Gideon and Farzam highlighted the cost-efficiency and speed of crypto transactions compared to traditional banking systems, with fees amounting to less than 1% in some cases, a stark contrast to the exorbitant fees charged by traditional financial institutions. Addressing the challenge of scaling crypto adoption in Africa, Farzam emphasized the importance of creating a supportive ecosystem that involves regulators, governments, corporates, investors, startups, and academia. While acknowledging the need for regulation to protect consumers, he emphasized the need for collaborative efforts to bridge the gap between traditional financial systems and decentralized technologies. The discussion culminated in a reflection on the trends in the cryptocurrency space, with both experts highlighting the influx of talent from traditional finance into the crypto industry. Despite the market volatility and recent price fluctuations, the long-term potential of cryptocurrencies in Africa remains promising. Gideon cited a significant increase in funding for blockchain startups in Africa, particularly in sectors like infrastructure, fintech, and financial inclusion, signaling a growing interest and investment in the burgeoning crypto ecosystem. As Africa emerges as a key player in the global cryptocurrency landscape, the conversation between Gideon Greaves and Farzam Ehsani sheds light on the transformative power of blockchain technology and the opportunities it presents for financial inclusion and innovation in the region.