Business & Financial News

Africa urged to embrace peer-to-peer technology (P2P) for financial inclusion

Get real time updates directly on you device, subscribe now.

By Rading Biko

In recent years, the global financial landscape has witnessed a revolutionary surge in the adoption and integration of cryptocurrencies.

These digital assets, built on blockchain technology, offer unprecedented opportunities for economic growth, financial inclusion, and cross-border transactions.

While the adoption of cryptocurrencies remains a topic of debate in many parts of the world, African states stand at a unique crossroads where embracing cryptocurrency could unlock tremendous potential, particularly in enhancing intra-Africa trade.

In a bid to grow the potential of the continent, Ray Youssef, founder CEO of  NoOnes App.

NoOnes is a platform App that seeks to connect Kenya and the Global South to the world’s financial systems via peer-to-peer technology (P2P), championing financial freedom & equitable access.

“Our App is driven by a desire to tackle inequality and empower those facing financial disparities, especially in places like Kenya and Africa. It aims to show Kenyans how P2P technology and cryptocurrencies could revolutionize financial systems and boost autonomy within the Global South,” says Yousef.

He further stated that one of the primary challenges inhibiting intra-Africa trade is the prevalence of multiple national currencies and the associated exchange rate complexities.

Yousef, “Cryptocurrencies provide a borderless, frictionless means of exchange, eliminating the need for currency conversion and reducing transaction costs. This can help African states streamline trade processes and promote seamless cross-border transactions, thereby facilitating greater economic cooperation and integration.”

At the moment the App offers access to over 450 payment methods. This strategy circumvents traditional banking systems, ensuring transparency and securing financial transactions.

He emphasized the importance of protecting users’ financial data.

“Cryptocurrency presents a viable solution to this issue by offering a decentralized financial infrastructure that is accessible to anyone with an internet connection. Through cryptocurrency wallets and peer-to-peer networks, individuals and businesses across Africa can participate in trade and investment activities, thus fostering greater financial inclusion and empowerment,” adds Yousef.

By tapping into AfCFTA, NoOnes seeks to collaborate with stakeholders to integrate Kenya and other regions into the global financial fabric systems.

African currencies are often prone to volatility due to various macroeconomic factors and external influences.

This volatility poses significant risks to intra-Africa traders and investors, discouraging them from engaging in cross-border transactions.

“I believe that with a decentralized nature and fixed supply mechanisms, offer a hedge against currency volatility. By transacting in cryptocurrencies, African businesses can shield themselves from the adverse effects of currency fluctuations, thereby promoting more stable and predictable trade relations,” Yousef comments.

Utilising blockchain technology, NoOnes simplifies financial communications and transactions in areas with limited banking infrastructure, thereby fostering inclusivity and convenience.

He further stated “One of our distinctive features, such as community participation, transparency, and sustainability, set it apart from other financial apps. The platform fosters a community-centric ecosystem that focuses on giving back, not just profit.”

Data from the Africa Development Bank shows that remittances from the African diaspora play a significant role in many African economies, contributing to household incomes and national GDP.

However, traditional remittance channels are often slow, expensive, and prone to inefficiencies. Cryptocurrencies offer a faster and more cost-effective alternative for cross-border payments and remittances.

By leveraging cryptocurrencies, African migrants can send money back home instantly and affordably, stimulating economic activity and financial inclusion.

As the world increasingly transitions towards a digital economy, African states have the opportunity to position themselves at the forefront of this paradigm shift by embracing cryptocurrency.

Yousef adds “By fostering a supportive regulatory environment and investing in blockchain education and infrastructure, African nations can attract investment and talent, positioning the continent as a hub for blockchain innovation and digital entrepreneurship. This, in turn, can drive economic diversification and reduce dependency on traditional industries.”

The adoption of cryptocurrency holds immense promise for enhancing intra-Africa trade and fostering economic development across the continent.

It can help in overcoming currency barriers, promoting financial inclusion, mitigating currency volatility, enhancing security and transparency, facilitating remittances, encouraging entrepreneurship, and positioning Africa in the global digital economy.

African states can unlock a new era of prosperity and integration.  However, to fully realize the benefits of cryptocurrency, concerted efforts are needed from policymakers, regulators, businesses, and civil society to create an enabling environment that fosters innovation, safeguards consumers, and promotes responsible use of this transformative technology.

 

Get real time updates directly on you device, subscribe now.

Comments
Loading...
Financial Fortune Media
Social Media Auto Publish Powered By : XYZScripts.com