Why isn’t rapid adoption of blockchain in Africa occurring?

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A question I ask myself when considering the potential benefits of blockchain technology for Africa is: why isn’t rapid adoption happening, especially when blockchain could dramatically transform economies and societies across the continent in such profoundly beneficial ways?

Many developed nations, for the time being at least, are managing without blockchain, though the need for transition is becoming increasingly urgent in both developed and developing countries. However, Africa faces unique and pressing challenges that likely cannot be effectively addressed without the solutions blockchain can offer. Socioeconomically, African nations are on a very tight timeline to deliver real positive economic growth and ensure political stability among their youth-dominant demographics.

So, the answer to why rapid adoption has not occurred is relatively straightforward, in my opinion. So far, no blockchain—or combination of blockchains—has demonstrated the capability to meet the specific needs of individual African nations while also undeniably providing the necessary regional, continental, and global connectivity. This kind of connectivity is essential to tackling Africa’s challenges: it can create new opportunities, build markets, reduce corruption, and streamline inefficient bureaucratic processes that slow down development. Any blockchain exhibiting such qualities becomes the apparent choice for adoption.

The BSV blockchain appears to be the most logical candidate to meet these needs among the various blockchain technologies available. Its unbounded scalability offers the potential to handle large transactions at low costs, making it well-suited for Africa’s growing economies. By enabling microtransactions and fostering transparency, the BSV blockchain can empower businesses, governments, and individuals alike. Furthermore, its capacity to integrate with existing infrastructure and create new digital ecosystems could help Africa overcome some of the barriers currently hindering its technological progress.

However, the reality is that BSV cannot yet provide the full capability necessary for an easy and obvious transition. But that is changing rapidly, first with Teranode and next with overlay networks and simplified payment verification (SPV), together forming the basis of a highly dynamic network capable of immense throughput and customization.

However, for Africa, one of the most particularly relevant and essential features of the BSV blockchain is available now: BSV’s ability to facilitate micropayments.

Micropayments, or very small payments often less than a fraction of a cent, can revolutionize economic activities at the grassroots level. In many African nations, where traditional banking services are either too expensive or inaccessible to large portions of the population, micropayments offer a solution to financial exclusion. They allow individuals to make payments for goods and services in very small denominations, removing the need for costly intermediaries like banks and payment processors. This could open new economic opportunities for millions of people, enabling them to participate in the digital economy, whether through mobile services, content creation, or access to utilities and microloans.

For example, micropayments can empower local entrepreneurs and creators, enabling them to monetize their work incrementally. This is particularly relevant in sectors like media, content creation, and education, where small contributions could support a creator economy driven by local talent. Furthermore, utilities like electricity or water could be distributed in a pay-as-you-go model, where people only pay for what they use, making these services more affordable and accessible.

Another critical component that blockchain offers is tokenization. Tokenization allows real-world assets, such as land, precious metals, livestock, currency, equity, and more, to be digitized and represented as tokens on the blockchain. This is a game-changer for Africa because it introduces new ways to manage, trade, and secure assets. In regions where property rights and legal infrastructures can be weak or vulnerable to corruption, tokenization creates transparency and verifiable ownership records. For example, through blockchain-based land registries, tokenized assets can reduce land disputes by providing a clear, immutable ledger of ownership.

Tokenization also facilitates fractional ownership, meaning large, valuable assets can be divided into smaller, tradeable units. This is especially important for African nations where many people might not have the resources to invest in full ownership of properties or expensive assets but could benefit from owning a portion. This could apply to real estate, infrastructure projects, or even commodities. Through fractional ownership, individuals and communities can invest in projects previously beyond their reach, thereby building wealth and improving their economic standing.

Additionally, tokenization can potentially boost capital markets in Africa by enabling new forms of fundraising, such as tokenized bonds or equity. Entrepreneurs and small businesses could use blockchain-based tokens to raise funds in a more transparent, efficient, and inclusive way than through traditional financial institutions, attracting both local and global investors.

A particularly promising development in this space is the Uganda Shilling stablecoin (UGXC), a project started by Ugandan Blockchain Association Chairman Reginald Tumusiime and Kite Financial founder Patrick Prinz. The stablecoin is built on the BSV blockchain and represents a major step forward for financial inclusion in Africa. The capabilities of BSV bring new value to the Ugandan Shilling currency with the advantage of having a micropayment capable of ultra-fast 24/7 payment that is available to the rest of the African region and the world.

If Uganda embraces UGXC, we can see it serving as a gateway to broader African blockchain adoption by enabling remittances, e-commerce, and cross-border trade to thrive by reducing currency conversion costs and transaction fees. Furthermore, the stablecoin’s ability to integrate with mobile payment platforms and other financial services can help bridge the gap between traditional financial systems and the digital economy. This is especially important in Africa, where we have seen how mobile money services like M-Pesa have transformed how people handle transactions and payments. UGXC can deliver considerably more than M-Pesa and will likely launch a payments revolution across the region.

In summary, it is not Africa’s fault that there hasn’t been aggressive blockchain adoption just yet. Much like for the rest of the world, the promise of blockchain has been elusive when it comes to providing realistic solutions on a large enough scale. That is changing quickly, though, as the BSV blockchain achieves a level of scale in which micropayments, tokenization, and products like the Uganda Shilling stablecoin offer practical tools to address some of Africa’s and the world’s most pressing challenges. With the massive reduction in transaction costs, the improvement of financial inclusion, and new ways to own and trade assets, the BSV blockchain helps create more inclusive and transparent economies. Now, all we need are more leaders like Reginald Tumusiime and Patrick Prinz to bring real blockchain-based solutions to those who need them most.

Watch: Boosting financial inclusion in Africa with BSV blockchain