Returning to the Source: Crypto Assets Practices on African Land

A few months ago, I set foot on the hot land of Africa once again. The dust raised by the speeding pickup truck, illuminated by the sunset, outlines a strange yet familiar impression of the African continent. Being an outsider provides enough space to reflect on the relationship between the Crypto Assets industry we are engaged in and this world.

In-depth understanding reveals that Crypto Assets can provide underdeveloped countries in Africa with an opportunity to synchronize with the world once again. From the faith and determination of these countries towards Crypto Assets, we can see that they are no longer satisfied with compromises with the old systems and structures, but instead choose to fully embrace Crypto Assets and move towards a bright future.

During the industry conference in Singapore, I had the opportunity to communicate with some peers and discussed the question of "whether the Crypto Assets industry has already ended." This reminded me of a small matter from a few weeks ago:

I have been living in Paris for two years now. One day, while working remotely at a small café near my home, I suddenly received a call from Uganda. After the surprise, joy, and confusion of the greetings intertwined, I realized that it had been 7 years since I left the traditional industry in Africa to dive into Crypto Assets.

The caller was a senior advisor from the Ugandan government. During my years rooted in Africa, I worked for state-owned enterprises and the UN International Development System, aiming to promote Africa's industrialization process and inclusive finance. With his help, we collaborated on various projects, including China-Uganda cooperation in investment promotion and the promotion of women's handicrafts in Uganda, which forged our friendship.

There are many experiences from my years living in Africa that can be elaborated on, some are grand, like having cheerful conversations with the President of Senegal in his home; some are thrilling, like when a close friend's boyfriend tragically lost his life in a terrorist attack in the commercial area we frequented in the capital of Kenya, and I narrowly escaped the worst aviation disaster in Ethiopian Airlines history by changing my flight at the last minute. However, the decision to leave Africa was a firm one.

Transfer of Value: Where is the money, how to spend it? Where is it spent?

Looking back at history, we can see three global industrial revolutions. From the steam revolution, the electrical revolution to the information revolution, each round of industrial revolution has brought about changes in productivity and changes in production relations, driving some countries to utilize their "comparative advantages" to participate in the global value distribution system.

However, due to Africa's special historical background of being colonized for a long time, as well as various complex industrial policies and international political factors, it has not been able to participate in the "cake-cutting" process.

Is Africa really poor? The facts say otherwise. Lagos, the capital of Nigeria, has the highest density of private jets at any airport in the world. After exchanges launched local payment channels in Africa, the per capita trading volume in Africa far exceeded that of European and Asian countries. The wealth gap in Africa is extremely vast; the upper class is wealthier than commonly perceived, while ordinary people live on the poverty line.

During a research project of an international organization, I witnessed this disparity between the rich and the poor. We stayed in a luxurious hotel that cost $300 a night, which is equivalent to half a year's income for many locals. Seeing the rich enjoying a lavish lifestyle by the Red Sea, while the servers' eyes were filled with numbness and confusion, this contrast is thought-provoking.

It was at that time that I decided to give up traditional aid work. We talk about industrial transfer and developing manufacturing, but this process is too slow. In the entire traditional "aid" system, the ones who may benefit the most are not the African workers who are "taught to fish," but the senior clerks sitting in offices in developed countries writing reports.

True Decentralization at the Kampala Vegetable Market

In Uganda, I came across some interesting Crypto Assets applications. A local organization developed a system that allows peer-to-peer encryption coin transfers using non-smartphones in areas without 3G network. This mobile payment method based on USSD technology enables people without bank accounts to easily make transfers and remittances.

At the Kampala vegetable market, I personally experienced this simple and efficient payment system. With just a $50 mobile phone, I could complete account opening, identity verification, and transfers in 3 minutes. There are official and unofficial service points everywhere, allowing people to exchange electronic balances for cash at any time, or recharge their accounts with cash. The entire process is completely peer-to-peer, with no third-party involvement, solving the trust issue.

Later, I joined a trading platform and participated in a Crypto Assets charity project in Africa. We established the world's first completely transparent peer-to-peer donation platform. Every Crypto Assets donation can be tracked and goes directly to the wallet addresses of the villagers in Uganda. The villagers use these Crypto Assets to purchase daily necessities, forming a small Crypto Assets economic cycle.

We also issued a special "value-stable coin" that represents the value of one Ugandan girl using sanitary pads for a year. This project addresses the health issues faced by local women due to the lack of sanitary products, while also showcasing the application potential of Crypto Assets in the field of social welfare.

Return to Essence: The Integration of Payment and Finance

At this year's industry conference, PayFi has become a new hotspot. The new concept of Payment+Finance has revitalized many projects. Whether we call it PayFi or FiFi, the important thing is that we are starting to return to the fundamental attribute of Crypto Assets as a payment tool.

Just like the redistribution of value and wealth, the development of everything in the world follows basic laws. What can truly exist for a long time are those products that can create positive value for society. Returning to this essence, our belief in Crypto Assets will not be so fragile.

I hope that after so many years, we can revisit the original intention of Crypto Assets. Those villagers in Africa who purchase daily necessities with stablecoins and the farmers who settle transactions with Crypto Assets may represent the purest applications of Crypto Assets.