Africa could bring 100 million defi users within the next 3 years

When the Goguen era kicks in for the Cardano blockchain, the doors to a range of new applications will be opened. It’s all for the developers to start building exiting decentralized applications so that Cardano can take it’s piece of the DeFi pie. Developers obvisously have been building towards this upcoming Mary hardfork for a while now and I myself am expecting to see some nice fireworks when this all comes into place.

With new applications comes the need for new customers. Otherwise it’s just a product without a market. When thinking about new customers and new markets, Africa was not the first continent I would think of. To me it was much more obvious to look at the established economies. These are the people who are already active in blockchain technology right now so why not build on that? Recently Charles Hoskinson did a video interview with cointelegraph where he explained more about the Cardano vision and this really opened up my eyes.

When looking at possible users for DeFi applications one should not be thinking about people from Europe. Or from the USA. In a western world DeFi will be regulated out of existence. Trying to change this would be a waste of time and energy. Instead it’s better to look at Eastern Europe, South-East Asia or Africa. In Africa, for example, 70% of the population is below or at 30, is internet enabled, digitized and westernized. Because of the bad situations with broken systems and markets that are just junk they are actively looking for improvements so they can be in control of their own situation. According to Hoskinson this might actually lead to a customer base of 100 million DeFi users within 3 years for all blockchains.

While this is obviously good news for all Cardano investors, the best part of it all is that it could act as a catalyst for changing traditional financial systems. In order to change traditional financial systems there must be a reason for it to change. When you create a new market, that is a hundred times more efficient, a hundred times better, has more velocity of money, more liquidity, more innovation of financial products and is more attractive to investments, where there is no centralized control, you are in control of your own identity and your own data, the traditional systems will then have problems being interoperable with it. Voila! There’s the reason for it to change!

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