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Fonbnk’s Michael Kimani breaks down the facts about cryptocurrency adoption in Africa

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The African continent is tipped as an important market for cryptocurrency adoption due to its young population, poor economic management by governments and lack of effective financial infrastructure to connect the continent internally and globally.

Adoption has become so widespread that Celebrities don’t want to be left outwith many big names in entertainment and media working with crypto brands.

In the first episode of Cointelegraph’s new podcast command hashFonbnk co-founder Michael Kimani answered questions about what cryptocurrency adoption looks like in the face of the growing buzz around the continent in the media and reports.

Kimani, one of the “OGs” on the continent, started working with one of the first Bitcoin (BTC) in Kenya, BitPesa, in 2014. A growing crypto community in the East African country led to the creation of the Kenya Blockchain Association, which he oversaw in its early days.

With his years of experience, Kimani points out that understanding the scale of adoption is very difficult because there is a data issue on the continent:

I think, in general, in Africa, there is a problem with data. We don’t have enough data. We don’t have data that we can rely on. This applies not only to the crypto ecosystem, but to the entire technology ecosystem as well.”

Data collection issues aside, Kimani is optimistic about cryptocurrency adoption in Africa, not from a reporting perspective but from traveling around the continent to witness the growth for himself.

Fonbnk’s co-founder identified the opportunity to make money, high inflation and the depreciation of local currencies, and the ability to do business globally as the main reasons for the rise in crypto use.

Regarding the future of cryptocurrencies on the continent, Kimani is optimistic that even though economies may contract further, cryptocurrency will gain more users. According to Kimani, it will be one of the biggest beneficiaries stablecoins:

“I expect stablecoins to feature prominently in the cross-border payments landscape in Africa. I think there is a huge problem with sending value across borders.”

In the episode, Elisha and Kimani also covered:

  • A deep dive into the reasons for cryptocurrency adoption in Africa.
  • The unfavorable regulatory environment on the continent and other barriers make adoption difficult.
  • Forecasts for the crypto landscape in Africa in the next five years.