Voice of the Industry

The evolution of blockchain technology in Africa

Tuesday 22 March 2022 08:57 CET | Editor: Alin Popa | Voice of the industry

Dr. Edward Obasi, COO at DafriGroup discusses the evolution of blockchain technology in Africa, the emerging trends on the continent, and the importance of an open view in this digital world.

Blockchain technology is increasingly advancing socio-economic growth for ecommerce and entrepreneurship in Africa and the rest of the globe. 

The adoption of blockchain and cryptocurrency technologies are offering users multiple options and scalability towards ease of doing business transactions across the African continent. This has made the African continent progressively embrace mobile cash and virtual currencies.

However, there is still some hesitation within African governments towards fully embracing and adopting blockchain technologies due to seeming loss of control, absence of clear-cut regulatory frameworks, poor understanding of the use cases of these technologies and fear of money laundering activities being facilitated through virtual money. 

Crypto adoption in Africa

Be that as it may, these technologies have gained widespread acceptance globally due to their tremendous use cases, speed of facilitating cross-border transactions and payments and some of them have recently been adopted by some traditional banking Institutions and Institutional Investors. Through the use of Peer to Peer (P2P) Network and Payment Agents which DafriXchange and DafriBank are pioneering, fiat to crypto transaction is being facilitated daily. A recent study shows that Nigeria alone has the highest rate of crypto adoption in Africa, with over USD 3 billion of transactions recorded in June 2021 alone. There are several fintech companies growing by the day, offering employment to teeming population of the youths as well as facilitating cross-border transactions using blockchain technology.

The massive adoption can only get better irrespective of government and traditional banks’ restrictions on crypto transactions. There is urgent need for governments across Africa to embrace the technology and come up with regulatory framework to regulate this emerging industry. The GDP of these countries will also be progressively improved due to free flow of investment capital across borders if they embrace blockchain technology. Most blockchain companies have taken necessary steps to allay the fears of regulators by introducing robust KYC and anti-money laundering features in their system. All registered users are made to submit their identity documents, passport photographs and proof of address before they are allowed to transact in the exchanges. There are Anti Money Laundering screening, name search, Politically Exposed Individuals (PEP) Search currently being implemented by these crypto exchanges using robust technologies like Sum and Substance etc.

As the digital landscape continues to evolve, businesses seek clarity and opportunities to scale and reinvent themselves to ensure they remain relevant in the ever-changing dynamic world. 

DafriBank Digital Limited, DafriXchange Pro and AfriGo Mall as case studies – Revolutionizing Banking, Finance and ecommercee in Africa:

Due to the numerous challenges faced by African Digital Entrepreneurs in facilitating transactions, payments and settlements which even led to some institutions blocking access to Users’ Funds with them, the Promoters of  DafriGroup PLC with its sister companies came up with these innovative platforms to disrupt the stranglehold of traditional institutions as well as create avenues for wealth creation and ease of doing business for digital entrepreneurs located in Africa, with Africa as its niche market and the global market as a whole. Crypto is global and there is no country restrictions or limitations.

Our innovative products, through integrated payment solutions, blockchain technology, have been revolutionary to say the least. A quick overview of some of these innovative products are outlined below:

DafriBank Digital Limited :
  • DafriBank Digital Limited is one of the first crypto friendly banks fully licensed by the Central Bank of Comoros. The Bank started operations in June 2021 through the soft launch of its Banking Platform;

  • The Bank offers such services as traditional deposit and savings through various deposit options like manual deposit, OZOW, DafriBank Epay, Card Deposits using Debit, Master and Visa Cards;

  • DBA Interest Wallet – where you earn interest up to 80% by depositing the native token in an interest-bearing wallet or account;

  • DBA Cash where you refer your friends and associates to buy into the bank’s native token and get 30% instant cash back deposited in your DafriBank Account;

  • Borrow, Stake, Farm – the Bank is pioneering a decentralized lending and earning protocol where you can use their native DBA token to get instant loan just by connecting your Trust Wallet or Metamask, several earnings opportunities like staking your tokens for a period to earn more tokens up to 180% APY, participating in Farming DBA as a proof of concept by depositing your BUSD or BNB and earning over 250% APY while also participating in the liquidity pool;

  • DafriBank Epay – this is DafriBank’s API integration helps merchants and digital entrepreneurs to encourage their clients to open accounts with DafriBank and get instant fiat off ramp and access to their funds at speed of light. Digital entrepreneurs, betting companies, forex brokers, casinos and other merchants are encouraged to take advantage of this innovative feature to grow their business. Over 500 merchants are already registered for this feature;

  • Bank Agents – the Bank is growing a network of bank agents across various countries to facilitate fiat deposits and withdrawals, you are encouraged to participate in this passive income potential where you earn fees on your clients’ transactions by applying today;

  • And other innovative products – contact hello@dafribank.com to learn more.

DafriXchange Pro:
  • DafriXchange facilitates daily crypto trading, swapping of one crypto asset to another, and uses the Payment Agents’ network to facilitate deposit and withdrawal activities;

  • This exchange is dubbed the Binance of Africa as it boasts of several of the features in Binance like Wallet Deposits, Withdrawals, Spot and Market trading, Swap or Instant Exchange of Crypto assets among other features

  • You can also borrow, stake or farm from the exchange as well as participate in the DBA 30% cashback incentive.

  • Contact support@dafriexchange.com to learn more.

AfriGo Mall:
  • This is the first African ecommerce platform where sales and purchases are exclusively through crypto;

  • You can buy crypto assets right from this platform through a Peer to Peer (P2P) framework;

  • Sellers and buyers will be able to communicate and close deals through this platform and deliveries effected at speed of light;

  • Buyers’ funds are protected through the use of escrow accounts.

These are some of the innovations that DafroGroup and its sister companies are using to facilitate crypto mass adoption in Africa and the rest of the globe. Crypto has come to stay, governments across Africa are encouraged to embrace it and come up with regulatory frameworks to tap into this emerging industry. The recent introduction of E-Naira by Nigerian Central Bank is a step in the right direction towards encouraging mass adoption of Blockchain technology.

About Dr. Edward Obasi

A Chartered Accountant (CPA) and Doctorate Degree holder (Honoris Causa) with over eighteen years experience in full cycle and general ledger accounting, financial statements preparation, analysis, reporting, performance management, budgeting and forecast, variance analysis, Capital Expenditure reporting , KPI metrics reporting, branch banking, wealth and portfolio management, credit risk appraisal, management and internal controls. Has gained valuable work experiences in diverse industries working with multi nationals in Canada, United States of America and Africa. Completed, Harvard Business School (HBS), Certification in Sustainable Business Strategy.

About DafriBank

DafriBank is a branchless financial technology company providing customized financial services to clients in 180+ countries. DafriBank Digital is part of DafriGroup PLC family, a public company duly registered in South Africa, Nigeria, and Botswana.

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Keywords: blockchain, cryptocurrency, mobile money, digital currency, cross-border payments, AML
Categories: DeFi & Crypto & Web3
Countries: Africa
This article is part of category

DeFi & Crypto & Web3