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Crypto: A Solution to Africa’s Financial Inequality Problem

African countries like Nigeria are at the forefront of crypto and DeFi adoption. Local crypto correspondent Precious Akinkuolie explains why.

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Africa DeFi Revolution: Bridging Africa's Financial Inclusion Gap -

Crypto and DeFi is empowering individuals and business throughout Africa. It is banking the unbanked, and providing finance to the masses. The Bitcoin Lightening Network and banks such as @xendfinance are solving genuine problems in Africa.

Africa has a severe financial inclusion problem. Only 43% of Africans are currently included in the traditional financial system, and about 50% do not have a personal bank account. These statistics account for roughly 684 million people who are excluded from the financial system.

In a Nigerian city like Ibadan, ATMs are only available in busy areas. Residents in the outskirts, like Egbeda and Oluwo, have to rely on POS merchants who are not always available.

There is also the problem of hidden charges and lax security systems. As an average Nigerian using a traditional bank account, hidden charges and exorbitant fees are the norm. This situation has created considerable distrust for the traditional financial system.

However, African DeFi protocols like @xendfinance are changing the narrative by providing the ease that many Africans require in their financial systems. With DeFi protocols, Africans can access financial services without prohibitive documentation or distance barriers.

The African DeFi revolution is not a fad. As @gladstein aptly described in his book, 'Check Your Financial Privilege', cryptocurrency has facilitated a new financial system where all participants are equal, and entry barriers are eliminated.

Read more on the impact of DeFi on Africa's financial inclusion drive here:

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Africa DeFi Revolution: Bridging Africa's Financial Inclusion Gap -
This post is based on this twitter thread.

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