Africa has been struggling with poverty reduction and economic development for centuries. Financial inclusion is a key factor in reducing these problems. But what is the state of financial inclusion in Africa? And how can cryptocurrencies help?
Statistics on financial inclusion in various African countries
Access to banks. Transfer money wherever you want. Low account management fees. These are all things that most people in Africa dream of. Financial inclusion is kept low, but let’s take a closer look.
In Nigeria, according to the 2021 Global Findex database, only 39% of adults have a bank account. In Kenya for example, you can clearly see an increase in the numbers. Here, 83% of people use mobile financial services such as online banking, which is a huge progress compared to other countries. This progress is obviously due to the use of the M-Pesa system. Besides Kenya, South Africa also stands tall. Here, 80% of all adults use a bank account.
In Rwanda are 71% of the adult population having a bank account and in Tanzania the rate is at 65%. This shows that the use of mobile financial service providers has grown strongly, but inclusion looks different in the other countries. In Ghana, the usage percentage for 2021 was just 58%. In Egypt, only 25% have a bank account. This is a quarter of the adult population in Egypt and shows a high need to expand financial inclusion. (https://www.worldbank.org/en/publication/globalfindex/Data)
Comparison between traditional financial inclusion and the potential of cryptocurrencies
Traditional financial inclusion and cryptocurrencies both have their pros and cons. However, when comparing them, cryptocurrencies are more advantageous.
Accessibility
Let’s start with the point of accessibility. Traditional banking systems have the difficulty that they are inaccessible to residents in rural areas in Africa, for example. Cryptocurrencies offer a usable alternative with plenty of accessibility options.
Costs and efficiency
Furthermore, the transaction costs for cryptocurrencies are not as high and can therefore also be used by people with a very low income. Traditional banking often involves high costs and longer transfer times. Cryptocurrencies are also more efficient as they ensure faster transfers.
Security and stability
With traditional banks, your money and transactions are monitored around the clock, which gives a sense of strong control. With cryptocurrencies, on the other hand, you have more control over your own money with protection behind it.
Our approach to improving financial inclusion through cryptocurrencies
At Uptota, we are committed to driving Africa’s financial inclusion forward and want to help improve it. On the one hand, we offer better access to financial services through our mobile wallet. This means that residents who do not have access to a traditional bank account can use it. On the other hand, we have also made our platform user-friendly so that people without technical knowledge can also access it. Through our educational programs and workshops, we expand your knowledge and educate you in the areas of cryptocurrencies, blockchain technologies and financial management. Our tutorials and guides are also available to help you use our platform effectively. Despite the appearance of complexity, we want to simplify the integration of cryptocurrencies into existing financial systems as much as possible, which is why we work with local banks, microfinance institutions and NGOs. Many people are put off by the perceived lack of protection offered by cryptocurrencies. For this reason, we have made it our top priority to ensure your protection. To this end, we have implemented robust security protocols and introduced two-factor authentication.
Look at our website and get inspired.
