Africa The Next Frontier for Crypto

Africa. The Next Frontier for Crypto

“In developed markets, crypto has the potential to disrupt a flawed financial system. That is significant, but not necessarily transformative. In emerging and frontier markets, it has the potential to create a financial system when none existed before.”

This is an opening sentence in an article penned by Benjamin Rameau, CEO Smile Research, back in 2018 titled “10 reasons why binance labs is fully committed to Africa”. The reasons to focus on Africa are even more valid today.

Tech and blockchain companies have been increasing their activities in Africa. One of the more public entrepreneurs, Twitter CEO, Jack Dorsey tweeted in Nov 2019” Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020.”

With growing interest on the African continent and Bitcoin returning to all-time highs, both in price and interest, I thought it timely to profile what one of crypto’s larger commercial participants, Binance, has been doing in the region and one how one their investments may play a significant role in the region.

Yele Bademosis Founder of Microtraction, CEO of Bundle and former Director of Binance Labs Africa co-authored an essay on blockchain in Africa with Soona Amhaz, general partner at Volt Capital:

“We believe that Africa is a perfect region for the realisation of the full potential of Blockchain and its application.”

Binance investments in the region go beyond financial motivation, we also believe that Blockchain is a global phenomenon and Africa should not be left out. “

Yele recorded a podcast on Laura Shin’s Unchained discussing Why Africa Is Poised to Be the Next Hub for Crypto Development.

In March 2019 Binance launched the Africa chapter of the incubation program of Binance Labs. Since launch there have been four (4) African projects that have participated: Xend, Raise, BitSika and YellowCard.

All four projects received funding from Binance Labs. One of these projects, Xend, also secured investment from Google Developers Launchpad, AU21 Capital, Ampifi VC, JUN Capital, TRG Capital, Twin Apex Capital Sandeep Nailwal (Matic Co-founder), amongst others.

Xend.Finance the first decentralized finance (DeFi) platform in the region focused on addressing the systemic devaluation of currencies within Africa. Xend will enable their users to form their own credit unions and cooperatives, eliminating traditional middlemen.

Their goal is to facilitate financial inclusion in the developing world whereby members can convert their deposits directly into stable coins and staked so that they can start harvesting yield on DeFi platforms such as Compound and Aave.

Traditional credit unions have a number of limiting drawbacks, including only 1% annual percentage yield returns,” said Aronu Ugochukwu, CEO of Xend Finance. Finance. He states that their platform will offer earnings up to 15% pa.

Xend.Finance is currently completing a smart-contract audit and from recent discussion on their Telegram it looks like they will be listing on sometime late December 2020 / Jan 2021.

If you want to learn more about Xend visit the website or better still their blog:

Article by David Freuden | Monsterplay | LinkedIn

Disclaimer: My research and articles are for educational and information purposes only. My views are my own. They are not investment advice.

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