Changpeng Zhao says challenges such as currency devaluation, difficulty in making cross-border payments and remittances, and the need for financial freedom are driving crypto adoption in Africa.
As the world’s largest cryptocurrency exchange by trading volume, Binance has continued to attract customers from across Africa, one of the fastest-growing destinations for crypto adoption.
Binance CEO Changpeng Zhao has reiterated that Africa offers unique opportunities, not just for the adoption of cryptocurrencies, but also for broader development of the industry.
Why Binance is bullish on Africa
The Binance chief’s comments in an interview with TechCrunch also revealed why the exchange remains bullish on the continent.
According to Zhao, Africa offers inimitable opportunities and is ripe for crypto adoption. He notes that crypto’s capacity to help solve problems related to cross-border payments and money transfer is seeing more and more people look to buy and use cryptocurrencies.
The number of the unbanked across the continent is also quite big, Zhao added, a fact that provides an opportunity for crypto adoption opportunities. Meanwhile, high unemployment has seen African youths venture into crypto and blockchain projects.
Asked to explain what could be fueling crypto adoption on the continent, Zhao said:
“I think it’s always a combination of many things,” before he went on to explain some of the catalysts towards broader adoption.
Changpeng on what’s fueling crypto adoption in Africa
The Binance boss, one of the most prominent personalities in crypto, believes that challenges such as currency devaluation have contributed to the rising adoption of crypto assets and stablecoins. Many people thus see cryptocurrencies as providing a better hedge against spiraling inflation.
Difficulties in making cross-border payments, or remittances, are another reason crypto is proving attractive to many Africans. Users do not just get to easily send money from abroad or across the continent but to also do so faster and at very low costs.
That’s not all. The need for financial freedom is seeing many people put their money into cryptocurrency investments, Zhao added.
“Much like Southeast Asia and Latin America, millions of people [in Africa] live below the poverty line. So it’s natural that they are interested in innovative, non-traditional ways of wealth creation.”
CZ, as he is known in the crypto space, recently said crypto needed proper regulation, adding that this will help the crypto industry build trust as it moves towards mass adoption. He also holds that effective regulation of the crypto sector in Africa will be critical to protecting consumers as well as spurring further growth.
Zhao also talked about some of the crypto and blockchain projects that could be greatly transformative for Africa. He believes infrastructure and systems in the sectors of GameFi, Sports Fan Tokens, and non-fungible tokens (NFTs) will play a huge role in transforming lives and offering financial freedom to many.