While visiting Africa for the first time in July 2023, I've come to realize a certain provocative truth—that crypto and decentralized infrastructures, while interesting in the West, hold existential importance for regions like Africa, Latin America, and the Caribbean.
This realization dawned on me gradually, after numerous interactions with people from these regions. There is an undeniable enthusiasm and genuine need for crypto in these areas, an essential lifeline that contrasts starkly with the somewhat forced adoption in the U.S.
Here in the U.S., cryptocurrency seems to stall whenever prices plateau or drop, exposing the underlying motivation for most—a simple get-rich-quick scheme. However, the story is different elsewhere.
In Africa, the use-cases for crypto are significantly clearer and urgent. The uncontrollable inflation, partly driven by dependency on the U.S. dollar as the reserve and international business currency, is eroding people's livelihoods. My heart sank when I realized that every time the Federal Reserve prints more money, inadvertently devaluing foreign currencies pegged to the dollar, it's the already globally economically disadvantaged who lose. This economic turbulence strikes me as grossly unfair, and it's this imbalance that crypto can help rectify in the Global South.
What if Africa could leverage the power of crypto to gain financial sovereignty? Imagine DAO tools supercharging the regenerative efforts of many Chamas of Kenya. Imagine using crypto to create natural asset, mineral-rich, or real estate-backed currencies.
These currencies could be immune to the vagaries of the U.S. economy and offer a resilience currently lacking. With crypto, these countries could pivot away from their reliance on a foreign currency, backed by nothing more than dwindling trust in a distant government.
The promise of decentralized infrastructure extends beyond just finance. The genius of internet infrastructures like AWS and Google, despite their inefficiencies, works well for the average American consumer who can afford them. Yet, these centralized infrastructures are of little help to those in resource-strapped regions. For them, decentralized infrastructure (whether blockchain-based or not) is not a luxury but a necessity, a matter of survival even. It's a way to leapfrog the limitations imposed by the current internet infrastructure, bringing vital services and opportunities to those who need them most.
This profound contrast between the U.S. and places like Africa has broadened my perspective. It's made me realize that while crypto and decentralized infrastructure may be seen as trendy or even unnecessary in the West, they're not just useful but vital elsewhere. In these regions, they are tools of empowerment and sovereignty, giving people a chance to gain control over their economic and digital lives.
So, I now find myself advocating for these technologies, not just as exciting innovations, but as essential instruments for change and equity in a global context.