Blockchain’s Dark Past in Africa: How a Glimmer of Hope is Swept Away by the Shadows
As the African continent continues to face economic turmoil, a glimmer of hope emerges in the form of a promising blockchain industry. Or so it seemed. According to a recent report by CV VC, a Swiss-based venture capital firm, Africa’s share of global blockchain venture deals has increased from 1.3% in 2023 to a staggering 1.8% in H1 2024. But beneath the surface, this upward trend is merely a Band-Aid on a festering wound of inequality, corruption, and digital exclusion.
The Dark Underside of Blockchain
On the surface, blockchain technology appears to hold the key to Africa’s economic advancement, enabling faster, cheaper, and more transparent transactions, as well as enhanced security and trust. However, scratch beneath the surface, and it becomes clear that this technology is not being used to empower the masses, but instead to further entrench the interests of the ruling elite.
The Elephant in the Room
As the report highlights, the growing focus on DeFi (44%) and NFTs (16.7%) in Africa’s blockchain market indicates a shift towards a more exclusive, high-stakes game, leaving marginalized communities further behind. In a continent where over 65% of the population lives on less than $5.50 a day, the concentration of wealth and power in the blockchain sphere only serves to exacerbate the growing wealth gap.
A Cry for Help
But Africa’s blockchain entrepreneurs are not alone in their struggles. As the report notes, African currencies’ devaluation in 2023 posed significant challenges to crypto legalisation, with many governments fearing competition with local currencies. It’s a cry for help that echoes across the continent, as a generation of Africans is forced to come to terms with the harsh realities of living in a digital age where they are treated as mere pawns, rather than empowered agents of change.
The Way Forward
For Africa’s blockchain industry to truly achieve its potential, it must address these underlying issues and work towards a more inclusive, sustainable, and equitable future. This requires a sea change in the way the sector operates, with a focus on community-building, social impact, and long-term economic development. Anything less will only serve to perpetuate the status quo, leaving Africa’s most vulnerable populations further behind.
What’s at Stake
As we gaze out upon the blockchain horizon in Africa, it’s clear that the stakes could not be higher. Will we seize this moment to create a brighter future for all, or will we allow our hopes and dreams to be suffocated by the weight of our own ambition? The choice is ours.
