Over the past decade, financial inclusion in sub-Saharan Africa has made significant progress as in 2011, only a small percentage of adults in the region had access to a bank account, however, today, more than 49% of adults have one. Leading the way are Mauritius (91%), South Africa (85%), and Kenya (79%).
The World Bank highlights that mobile money has been a game-changer, helping more people access financial services, and the trend is only growing stronger as digital services continue to evolve.
How Crypto and Blockchain Are Driving Change
Findings from MDPI research states that cryptocurrencies offer mechanisms to address challenges faced by those excluded from traditional financial systems, additionally according to a report by Baker McKenzie, technologies like cryptocurrency and blockchain have the potential to reshape financial inclusion across the continent.
One key benefit of crypto is its growing acceptance as a payment solution which can be seen in South Africa, where there are 5.8 million crypto users, and this number is increasing. By providing simple, user-friendly financial tools, crypto platforms, often accessible via mobile apps, are breaking barriers.
Why Crypto Appeals to Many Africans
Traditional banking systems in rural Africa have significant drawbacks:
1. Few bank branches in remote areas
2. High fees to maintain accounts
3. Excessive paperwork to open accounts
4. A general distrust of banks
For many, being unbanked is a deliberate choice, since they prefer solutions that allow them to send, receive, and manage money without the restrictions of traditional banking. Cryptocurrencies meet these needs, thanks to their reliance on blockchain and mobile technology.
Crypto Wallets: Simplifying Payments
Mobile-based crypto wallets are creating ecosystems that rival traditional banks in terms of rewards and benefits—without the complexity. For example, Binance Pay offers:
Low transaction fees
Rewards for paying and getting paid in crypto
Furthermore, crypto payments are becoming more accepted in everyday transactions; South Africa as a key example has its retailers like Pick n Pay, Takealot, and The Tea Merchant let customers pay with cryptocurrency.
Cross-Border Payments Made Easy
Many Africans, including gig workers, small businesses, and remote workers, depend on international payments for their livelihoods, hence, simplifying cross-border payments is one of cryptocurrency’s advantages. Traditional systems often have:
a. High fees
b. Lengthy delays
c. Complex processes
With crypto solutions like Binance Pay, money can move across borders almost instantly and without high costs—provided both parties use the same platform and this presents as a huge advantage for those who need to send or receive money quickly and affordably.
The Role of Mobile Technology
Mobile phones are central to Africa’s digital transformation. According to the GSMA Mobile Connectivity Report 2023, the region has:
489 million unique mobile subscribers
287 million mobile internet users
Growing adoption of 4G and 5G networks
These advancements make accessing financial services easier than ever before. And with crypto largely built for mobile platforms, it’s perfectly positioned to meet the needs of a diverse population.
Overcoming Challenges
There are still hurdles to global crypto adoption:
1. Regulatory uncertainty
2. Lack of digital finance education
3. Infrastructure limitations
However, the rapid rise of crypto adoption is encouraging governments to create supportive regulations. This shift lays the groundwork for greater financial inclusion.
Crypto is more than just a tool for bridging the financial gap—it’s building an entirely new road. By tailoring services to the needs of small businesses and individuals, crypto is offering something far more accessible and flexible than traditional banking.
With growing adoption, cryptocurrencies will continue to play a key role in restructuring financial inclusion across Africa, empowering people with better ways to manage and grow their money.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
