A notable development is that about 200 people in Kibera, Kenya's largest slum, are adopting Bitcoin for daily use. Three years of local operations have brought Web3 acceptance to Nairobi's poorest workers.
However, actual reports show that many of these adopters are primarily interested in Bitcoin's growth potential. Building a cryptocurrency community under these conditions is possible, but extremely challenging.
Bitcoin as a Lifeline for the Unbanked in Kenya
Bitcoin ETFs in the US have significantly changed the cryptocurrency industry, promoting institutional acceptance of the leading cryptocurrency. Businesses and organizations now view Bitcoin as a value store and reserve asset.
However, Satoshi's vision for BTC was much more decentralized, aimed at serving those who abandon traditional financial systems. Although this vision has not yet become a reality in the West, developing regions show a different story.
Recent reports indicate hundreds of people in Kenya are adopting Bitcoin for daily transactions.
Specifically, ABC noted AfriBit Africa, a fintech company that has been operating in Kenya since 2022, as the inspiration for this Bitcoin adoption.
They provided subsidies to local garbage collectors to receive wages in BTC, a decision that brought many clear benefits. From there, vegetable sellers and other local entrepreneurs began joining this trend.
In addition to lower fees compared to ATMs, Kenya's poorest citizens can receive many other benefits from Bitcoin. Although cryptocurrency-related robberies and kidnappings are increasing in the first world, carrying cash is much more dangerous in Kibera.
Moreover, Bitcoin offers high profits, allowing users to earn from their income.
However, many obstacles remain. Kibera, Kenya, with an estimated population of 250,000 to 1 million people, has only about 200 Bitcoin users.
Accessing Web3 doesn't require a bank account, but needs devices, electricity, and internet connection. Moreover, that's not even the biggest issue.
Actual reports reveal that many of these 200 Kenyan users are primarily using Bitcoin as a speculative asset, similar to their Western counterparts.
Journalists found and interviewed residents who have invested 70% or 80% of their net asset value in BTC. In other words, optimistic statements about daily adoption may be exaggerated.
For these people, why spend assets on daily goods when they can grow daily? However, if Bitcoin collapses, this over-investment could bring disaster to some of Kenya's poorest residents.
Transitioning from these usage models to a true cryptocurrency community will require education, investment, and time.
All of this means that more than one startup will be needed to truly bring Bitcoin to Kenya. AfriBit's subsidies, up to over 10,000 USD, have created momentum for this acceptance.
If these subsidies run out, this nascent community will not be sustainable.
However, this is still a positive sign that cryptocurrency is gradually helping the unbanked access finance in an environment where traditional institutions and banks only serve higher social classes.
