Tuesday, January 31, 2023

Bridging the knowledge gap through crypto education is critical to ensure that future web3 experts come on board in ensuring that Africa and its citizens do not remain behind.

  • The African crypto sector has offered possibilities to many young Africans previously excluded from genuine income-generating opportunities on the internet.
  • In a legislative quagmire of worry and uncertainty, many Africans lack the technical know-how to store and use cryptocurrencies properly.
  • The Binance Masterclass program, which provides crypto education ranging from trading to career opportunities in blockchain, launched in January 2020, aimed at increasing crypto literacy in Africa.

The crypto lifeline in Africa

The African cryptocurrency sector is a lifeline. The African crypto sector has offered possibilities to many young Africans previously excluded from genuine income-generating opportunities on the internet. Despite legislative obstacles, this group has embraced crypto to trade, invest, perform smooth cross-border transactions, and get compensated for their creative efforts, among other things.

ALSO READ: Future Of Web3 For Africa

However, Africa’s involvement with this technology as a simple consumer is insufficient. Members of the African crypto ecosystem are resolved to participate more as builders and producers impacting the way the cryptocurrency network evolves while taking into account the intricacies of the African continent.

In Africa, crypto adoption and use have grown over time. Many Africans are interested in cryptocurrencies because they believe they are more promising than conventional currencies. In finance, crypto has assisted Africans in catching up with other nations on a continent with emerging economies.

Even though crypto can become a critical component of the future, many companies and people are still reluctant to adopt this new form of currency. This reluctance is attributable to a general lack of knowledge and comprehensive education on crypto and blockchain.

According to a recent Luno research, 55% of Nigerians know nothing about cryptocurrency, compared to 56% in South Africa and 64% in Kenya.

Furthermore, according to Kucoin research, crypto transactions in Africa account for about 2.8% of worldwide volumes, indicating that experts and players still have much work to do to increase acceptance.

African economies are experiencing a transformation. The trend toward everyday trade looks to be continuing. Although cryptocurrencies are typically seen as speculative financial assets in other regions, they have grown more popular in Africa and other developing countries.

Bridging the knowledge gap through crypto education is therefore critical to ensure that future web3 experts come on board in ensuring that the continent and its citizens do not remain behind.

Technological knowledge and age gaps

In a legislative quagmire of worry and uncertainty, many Africans lack the technical know-how to store and use cryptocurrencies properly. A significant percentage of Africans remain ignorant of cryptocurrencies and hence lack the will to invest in them.

Africa’s knowledge gap has resulted in crypto-malware and fraud. Scammers regularly promise consumers significant returns on investments but never follow through. The scams make it difficult for investors to recover their monies, preventing others from participating in the bitcoin market.

Another critical factor of the crypto backlash is also the age difference. Regardless of the fact that young people mainly inhabit Africa, African leaders are the complete opposite.

In Nigeria, for instance, President Muhammadu Buhari, a 79-year-old former army general, controls the fate of young cryptocurrency investors. Buhari has been sceptical about Nigerian youth preferences in the age of the Metaverse and Tiktok.

ALSO READ: Binance launches crypto education hub in Cameroon

Focusing on crypto education beyond the hype

rapid rise of cryptocurrency

With the rapid rise of cryptocurrency in Africa, digital currencies have become the new trend in the financial market. [PHOTO/CULTURECUSTODIAN]

The issue of education is a significant consideration when it comes to the proliferation of cryptocurrency trading in Africa. Mistrust and misconception yet prevail around cryptocurrencies and their perceived use as a means to facilitate illicit activities around the world. Binance South Africa country manager Tanya Knowles says education is essential in growing the use of cryptocurrencies in Africa.

According to Knowles, the simplest way to acquaint people with cryptocurrencies lies in encouraging them to kickstart trading with small amounts, starting with crypto account holders giving non-holders small amounts of crypto as an introduction. As such, newcomers gain practical experience as the best way to get started with crypto.

Michelle Nsanzumuco, Fintech4Good lead for Africa, says that the cryptocurrency sector is growing in pockets around the continent. Africa has niche pockets and interest areas, with some countries where people actively participate in crypto. Countries like South Africa, Kenya, Nigeria and Zimbabwe have active crypto communities that have started to get active crypto engagement.

Many young people have shown a clear interest in crypto and blockchain in general. The interest and small crypto adoption sectors present a positive sign. However, Nsanzumuco insists that crypto education must get an upgrade to help the cause.

The perception of senior organisations and groups is not always positive. There is that association of all the dodgy stuff with crypto. A great deal of cryptocurrency education still needs to come, and the acquired knowledge and information will come with heightened adoption. Without the education and the know-how, it will be challenging to move away from the ever-present crypto hype and propaganda.

Nonetheless, the fact that Africans have accepted and led the creation and widespread usage of mobile payment systems throughout the continent encourages the adoption of new technologies and platforms.

When it comes to mobile payments, Sub-Saharan Africa invented them. It is not a new phenomenon on the continent. Based on this, Africans’ familiarity with mobile payments may make connecting with crypto networks and emergent technologies a little simpler.

Binance and Bloomone are leading the way in crypto education

In addition to boosting adoption and creating an ecosystem, the Bloomone crypto platform aims to educate a number of Africans via educational-powered blockchain programs. The Bloomone Academy aims to equip young people with skills to help them impact and contribute to the development of the web3 economy in Africa and globally

Consequently, Binance, the world’s largest cryptocurrency exchange by trading volume, remains at the forefront of cryptocurrency education. By offering information, the platform ensures that crypto enthusiasts have the correct information at their disposal.

The Binance Masterclass program, which provides crypto education ranging from trading to career opportunities in blockchain, launched in January 2020, aimed at increasing crypto literacy in Africa. Over 541,000 Africans have received free crypto education from Binance since then

Binance has also considerably stepped up to ensure education around scams associated with everything crypto. Binance places a lot of emphasis on security, ensuring people use two-factor authentication (2FA) and other safety measures.

ALSO READ: Binance holds talks with Africa’s largest economy to create a virtual cryptocurrency zone

 

 

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