Funding for African blockchain startups grows

While bitcoin continues to consolidate internationally, Adoption continues to grow in Africa. A new report reveals that venture funding for African cryptocurrency startups grew tremendously throughout 2022. Africa’s blockchain startups managed to generate 91 million dollars only in the first quarter of this year, which represents an increase ten times greater than the first quarter of 2021.

In this sense it is important to mention the company Crypto Valley Venture Capital (CVVC), which is a Swiss-based venture capital firm that has launched an early-stage blockchain fund in Africa.

The company has stated that the objective of the accelerator is none other than to finance a hundred in Africa in the next four years. As of today, CVVC’s investment has reached a dozen blockchain startups that have business models that go beyond digital currencies.

In this sense, there are those who have assured that the launch of the blockchain fund by CVVC is positive, since blockchain has the potential to be a great catalyst for positive change and to shape the future globally in the economic field. In this regard, it should be considered that since data around blockchain in Africa is still scarce, the first blockchain in the country will be something very important.

Likewise, it must be taken into account that the Central African Republic is ready to launch the first bitcoin and cryptocurrency investment center in Africa, after the country decided to make bitcoin legal last month.

Cryptocurrencies in general have a very important role that they can play in the country, where many people do not have access to financial institutions.

Mass adoption of cryptocurrencies in Africa

Africa has been experiencing a cryptocurrency boom for some time now, and this has led to more and more people betting on the use and investment in digital currencies. In fact, there is a mass adoption of cryptocurrencies in Africa for a long time, increasing its value in a very notable way, to the point of positioning itself as the third fastest growing cryptocurrency economy globally.

It must be taken into account that the African continent has more than 1.3 billion people, which makes it the second largest population in the world, but this makes it Only 43% of inhabitants have a bank account.

It is precisely this inaccessibility to financial services that is a direct consequence of colonialism, the harshness of the terrain itself and the civil wars that are being experienced. Despite everything, Africa has managed to turn these difficulties into an advantage for them, with an ideal vector to adopt a series of digital assets that are available to any user who has a mobile phone, thus achieving greater adoption.

Africa also leads P2P payment platforms in terms of transaction volume in all regions, surpassing the global average to be above 7%. Regarding transactions between regions, these represent 96% of the continent’s digital currency market, due to the high price of sending money abroad.

Likewise, Africans have opted for this alternative way of moving funds to the detriment of cryptocurrency exchange platforms such as Binance, which was banned and blocked.