Isaac Patka
@isaac
I recently had the privilege of spending a week with founders from Kenya, Nigeria, Ghana, Zambia, and South Africa at the /magma residency outside of Nairobi, organized by @yoseph. Here are a few reflections and eye-opening moments that make me super excited about the prospects for onchain apps in Africa.
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Isaac Patka
@isaac
One of the first things I noticed was that mobile money, such as MPesa, is already the standard in Kenya. People's relationships with their telcos are vastly different from those in Western markets. Upon landing at the airport, I set up a local eSIM with an MPesa wallet, ...
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Isaac Patka
@isaac
...which I could use for every transaction, from shopping to P2P payments, and even bribing a security guard to let me walk around the local university with @james.eth. The transition from mobile money wallets to crypto is a much shorter leap in Africa compared to elsewhere.
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Isaac Patka
@isaac
Another striking observation was that crypto in Africa is not a counterculture or ideological movement. Instead, it serves as the only alternative for accessing stable savings and payment options.
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Isaac Patka
@isaac
With runaway inflation and limited access to dollars due to government controls, dollar-denominated stablecoins have become critically important for people in their daily lives.
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Isaac Patka
@isaac
Interestingly, most people in Kenya don't acquire crypto from exchanges. Instead, they rely on networks of trusted agents, exchanging mobile money or airtime for USDT. Binance P2P facilitated $26B in tx in 2023, leading to a recent crackdown in Nigeria. New startups like Onboard by @yele.eth are working to bridge this gap.
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Isaac Patka
@isaac
USDT and Binance are the trusted entities in Africa, while in the US (in my experience), it's USDC and Coinbase. Celo, one of the most active L2s in Africa, has a much more prominent presence there compared to the US.
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