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Amid Nigeria’s economic crisis, marked by nearly 30% inflation and a 230% devaluation of the Naira in the past year, along with Ghana experiencing a 23.5% inflation rate, Strike, a platform utilizing bitcoin’s Lightning network for B2B cross-border payments, has announced its expansion into Africa. Their objective is to provide affordable cross-border payment solutions for both individuals and businesses.
By leveraging Strike, African businesses and individuals will gain access to account openings, business dashboards, and secure investment opportunities in Bitcoin and USDT.
Despite the promising expansion, Strike’s entry into Africa coincides with challenges facing cryptocurrency platforms in the region. Recently, the Nigerian government restricted access to platforms like Binance, Coinbase, and Kraken, citing currency stabilization concerns. This move comes despite Nigeria’s significant cryptocurrency adoption, driven by efforts to hedge against local currency depreciation. Additionally, the government detained two Binance executives following a website ban.
Similarly, Kenya has announced plans to enact new cryptocurrency trading laws due to apprehensions about money laundering and terrorism financing channels facilitated by these platforms.
Remittance rates in Africa have historically been among the world’s highest, hindering financial progress. In 2022, the World Bank reported that the average cost of sending $200 to Africa stood at 8.5% of the transfer amount, compared to less than 6% globally. Consequently, existing remittance services in Africa have become scarce and costly, with fees reaching up to 20% in some countries on transferred amounts.
Source: Techpoint