Key Takeaways
- Startups are trying to integrate Web3 use cases in Africa, such as getting unbanked individuals online and into a more centralized financial system
- The funding for African blockchain startups totaled $127 million in 2021.
Blockchain has occasionally come to represent risky investments and cryptocurrency crashes. Startups are trying to integrate Web3 use cases in Africa, such as getting unbanked individuals online and into a more centralized financial system.According to data from the Swiss Crypto Valley Venture Capital, or CV VC, while funding for African blockchain firms totaled $127 million in 2021, it has already reached $91 million in the first three months of 2022, an increase of 1,668 percent over the same period last year.
Sometimes, blockchain has come to stand for uncertain investments and coin crashes. However, startups are attempting to implement Web3 use cases in Africa, such as connecting unbanked people to the internet and integrating them into a more centralized financial system.
The funding for African blockchain startups totaled $127 million in 2021. Still, it has already reached $91 million in the first three months of 2022, an increase of 1,668 percent over the same period last year, according to Swiss Crypto Valley Venture Capital, or CV VC.
Read: Learn more about Web 3.0 in this blog post: What does future Internet look like?
Increasing use cases in fintech
World Bank data states that the use of mobile money, or digital currencies and assets made available outside of a traditional banking network, is substantially responsible for the rise in the proportion of individuals in Sub-Saharan Africa who have bank accounts. In addition, Greaves claims that as consumers look for more secure banking systems online, Africa's "weak financial infrastructure" has contributed to an increase in blockchain use cases across the fintech industry.
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Ghana's Mazzuma, which leverages blockchain infrastructure to enable peer-to-peer payments, is one such firm that CV VC has invested in. The site began as a straightforward payment mechanism for neighborhood online stores. Still, Kofi Genfi, one of the platform's co-founders, told Insider that it has since grown to provide consumers with a full range of remittance products.
There are several other startups by africans that have started incorporating web3 into their systems and it is quite an exciting thing to lookout for. Do you think this is a right move considering the several speculations around Web3? Let's know your thoughts in the comment section below.
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