A hotspot for blockchain applications, a vast area for digital unicorns to appear, and millions of individuals in need of technology services are all rising in Africa.

Cryptocurrency adoption in Africa grew by over 1,200% between July 2020 and June 2021, according to a report compiled by CVVC and Standard Bank.

The growth rate of funding for blockchain startups was 11 times higher in the first quarter of 2022 alone than it was in the entire continent of Africa for venture capital investment. The most financing went to fintech businesses that offered straightforward and transparent payment methods, with Nigeria raising the most money for cryptocurrency projects.

According to the paper, Africa is a “transformative technology for humanity” and a global leader in the broad adoption of blockchain technology.

African nations may also benefit from a blockchain-based financial and monitoring system. For instance, tracking would assist increase food security, and financial tools would let farmers borrow money to buy crops or rent land.

This may be significant in the context of government loans, for instance, which farmers may find challenging to obtain due to the extensive paperwork. For farmers, establishing legitimate financial reporting is much more difficult.

Blockchain technology can also be used to reveal wrongdoing and corruption, and to make it simpler to obtain credit for manufacturing and get rid of fraud in public finances as well.

However, legal impediments, a lack of standards, and a lack of communication across blockchain projects are all obstacles to this bright future. Only six African nations have clear laws permitting the usage of cryptocurrencies, 17 have murky laws, 27 have an implicit restriction, and four have outright outlawed them.

With blockchain tech paving the way for a few unicorns throughout the continent, an increase in startup funding will lead to standardizing and maturing of the crypto space, as well as a revision and thorough elaboration of crypto legislation.