The continued depreciation of the Kenyan Shilling as well as the contracting global economy have seen an increase in the adoption of blockchain technology, as has the increase in demand for USD-pegged stable coins. This is in accordance with the “State of Web3.0 in Africa” report by EMURGO Africa and PwC released this month. The report, which casts a spotlight on the rise of blockchain investment within Africa, noted that blockchain funding rose by a stunning 1,668% in 2022 compared to the preceding year, accumulating a total of USD 91 million (Ksh. 12.7 billion) in Kenya, South Africa, and Nigeria.
Read more: Kenya’s Crypto Market Marches to Its Own Beat
The increased adoption of blockchain technology as an alternative for investment is aimed at protecting investors’ assets from the highly depreciating shilling, which risks devaluing some of these assets. The Kenyan shilling has been on a downward trajectory, standing at Kes 140.55 against the dollar as of Thursday morning. According to the report, the Middle East and North Africa (MENA) region has been identified as the fastest-growing crypto market from 2021 up to date. In East Africa, the report showcases Kenya’s fast growth in implementing blockchain solutions with the start of blockchain investment start-ups such as Azima Finance, Yna Kenya, Drop Access Limited, and Crypsense Digital Group, among others, which will help stimulate economic development in the region.
Read more: The Central Bank Of Kenya Prioritizes Stability Over Digital Currency
According to EMURGO Africa Chief Executive Ahmed Amer, blockchain investments are an incredible opportunity for companies, start-ups, governments, and youth to connect and learn from emerging technologies, as well as foster growth for e-commerce and entrepreneurship while unleashing the continent’s potential to the rest of the globe. The United Nations Conference on Trade and Development (UNCTAD) attributed Kenya’s growing use of digital currencies to low fees charged by crypto exchanges, the ease of withdrawals, and advancements in technology that have seen increased internet access.
