Golden Globe Award-winning actor Idris Elba isn’t just a star on the screen; he’s shining a light on financial freedom in West Africa.
Teaming up with the Stellar Development Foundation, a nonprofit focused on blockchain technology, Elba aims to give millions in West Africa access to personal finance tools they currently lack.
The Banking Struggle in West Africa
Did you know that less than half of West African adults can access banking services? Even in Nigeria and Ghana, the region’s economic giants, many people are unbanked.
In other Sub-Saharan African countries, like South Africa, the situation is even more dire due to a mistrust of banks, ATM fraud, and bureaucratic red tape. Cryptocurrency, powered by blockchain, offers a promising solution to these issues.
Cryptocurrency safeguards against currency manipulation, a tactic often used by governments in developing countries. Such practices devalue the currency, reducing the buying power of ordinary citizens. Cryptocurrencies can help curb this problem, providing a more stable financial option.
The Unbanked Majority
Globally, 75% of the poor lack bank accounts, making it difficult to build wealth without savings or credit. In many developing nations, the high cost and impracticality of accessing banks keep people financially excluded. Transport costs are exceptionally high in Africa, and with only 7.8 ATMs per 100,000 residents in West Africa, banking is nearly impossible for many.
Digital crypto wallets like Coinbase Wallet and Exodus charge no fees for opening accounts or maintaining balances. With 60% of West Africans having internet access but only 13.7% having bank accounts, cryptocurrency could significantly close the financial accessibility gap. You only need a valid ID, which is much simpler than traditional bank requirements.
While American trade has brought investment to West Africa, it has also stunted the growth of local currencies. If African trade organizations adopted a default cryptocurrency for transcontinental trade, it could strengthen the African economy by weakening the dominance of foreign currencies.
Idris Elba’s Vision
In a 2023 interview with CoinDesk, Idris Elba likened his vision for financial freedom in West Africa to the explosion of television channels. Just as the entertainment industry now offers countless platforms for creative expression, Elba hopes to see similar growth in financial options for West Africans.
The expansion of cryptocurrency in West Africa holds great promise for bridging the financial divide. By simplifying banking and making financial services more accessible, Idris Elba and the Stellar Development Foundation are paving the way for a new era of economic empowerment. As these technologies gain traction, they could transform the financial landscape, promoting greater inclusivity and prosperity across the region.
