Cryptocurrency has become the tech buzzword and has found its way into all parts of the world and Africa has not been left behind. Although lagging a bit behind in internet connectivity and mobile phone ownership, countries such as South Africa, Kenya, Nigeria, and the DRC are leading the way in using crypto coins to conduct business. Small businesses have especially benefitted from the increasing adoption of these cryptocurrencies as they are effectively filling the gaps that are left as a result of shortages in national currencies. A case in point is Kenya where small scale agricultural traders have gradually adopted the use of a local crypto coin, Sarafu.
Kilifi is a rural coastal town in Kenya renowned for agriculture and has recently hit the headlines for the adoption and use of cryptocurrencies. Sarafu has been in use for a while and is favored because of its ease of use, security features since it is a cryptocurrency backed up by the safe block chain technology. In Kilifi, farmers and traders of agricultural produce are increasingly relying on Sarafu as an alternative to cash. The Sarafu cryptocurrency is today used as a voucher and can be traded for goods and services. Expectation is rife among the dwellers of Kilifi and Kenya as a whole that more institutions will adopt the block chain technology to help boost business activities in the country.
Mobile phone ownership and internet connectivity are high in Kenya and this makes the adoption and acceptance of cryptocurrencies as a medium of trading and business easy. What is more, the adoption of cryptocurrencies in Africa and the world over is driven by the institutional adoption by large organizations. In the case of Africa, these institutions include the telecommunication companies, banks, and producers of raw materials, as these allow small businesses and customers to transact using these alternative coins. The facilitation of currency adoption is equally important as this ensures that the public is confident that these cryptocurrencies are backed by financial value which they can actualize by trading these coins with fiat money in the end.