INCLUSIVITY

BREAKING EVERY CHAIN

A story of African Perspective

The term “cryptocurrency” is one that we hear increasingly in a world filled with alluring and enticing “must know” trends. As a social entrepreneur working partly in the financial literacy space I knew that this persistent and daunting new

trend would eventually come knocking at my door and I would have to decide whether or not to answer the call. Having heard the inevitable knock, this article relays my attempt at turning the door knob (or, in line with the times: using biometric recognition to open an automated door) and letting in the winds of change.

When mapping out the feasibility of a new disruptive tool, platform or trend in a South African context, I firstly look at how its application is an enabler of access to the fundamental fruits of democracy that are enshrined in the Constitution of the Republic. In this instance, the question that sprang to my mind was whether or indeed how cryptocurrencies would enable or interact with the democratic values of human dignity, equality and freedom which are specifically detailed in section 7(1) of Chapter two of the Constitution. You may be curious as to the gravitas of our Constitution in the context of cryptocurrencies. Simply put, the South African Constitution is held in high esteem by even the most democratically progressive countries in the world and should therefore be a compass that guides our conduct and the mindset with which we drive and embrace innovation.

In the quest to uphold and strengthen the democratic values mentioned above, three inevitable questions come to mind:

1. What universal problem do cryptocurrencies have the potential to solve? 2. Who is empowered by cryptocurrencies? 3. What barriers are being broken by these digital currencies?

A good place to start is the very definition, according to the Oxford dictionary cryptocurrency is: ‘a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority’. This definition is enough to trigger torrents of skepticism in most minds and

left me with more questions than answers. ‘Decentralised’ and ‘cryptography’ sound to me like ‘legitimised secrecy’ or money being dealt out by an electronic ‘Board Of Secret Shadowy Figures’.

So, where to start in the quest to understand The Thing? Until we know a little more about them, cryptocurrencies will be referred to as The Thing. I suspect that this is rather more creative than shortening the name to ‘crypto’. My first port of call was a trusty and wholly more familiar friend: Google. I spent days inquisitively immersed in unpacking and interrogating the integrity of The Thing. Well before one should ask what it is that the Thing can do for humanity, it is essential that we get to grips with how it works. I was introduced to a key framework called blockchain. This is a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

At this point my brain was hurting, yet my curiosity about how The Thing can be used to create income security, inclusive economic participation and women empowerment on the African continent. Now that we know what it is and kind of how it works, we can call it cryptocurrency again.

Another angle for exploration was to look for young African people who were actively part of this so-called ‘new economy’. I reached out to friends, we’ll call them Mr.O, a tech-brain to be reckoned with and Imani, a crypto enthusiast in the fintech space. The questions I directed to Mr O and Imani were specific to what potential cryptocurrency brings to the ever changing and

growing continent of Africa.

The first point of departure was to understand how crypto could be a platform that changes the narrative when it comes to income participation of women in particular. They walked me through many avenues that have been created to shatter the prevailing #BoysChoirMustFall

conundrum.

Easy Equity (a simple to use and understand platform that enables people to invest in small amounts) was one of the platforms of interest suggested for those of us who are starting to explore investments in shares and foreign exchange. Such platforms plug you into a community and networks that are sure to bring your investor appetite to a new level.

A great concern around crypto currency is still security, which left unanswered can fuel skepticism and fear. We’ve all read about the tragedies brought forth by the illicit activities in the stock markets and banks through stories like Enron, Steinheist, VBS and the list goes on of billions that were lost by millions of unsuspecting lives in investments. Here’s hoping cryptocurrencies could provide a long awaited reversal of ones fortunes. Assurance is necessary on how cryptocurrency is different that you don’t wake up and all that you have invested disappears without a trace. The possibility of your money disappearing overnight at the whim of an untraceable tech geek is enough to frighten the average person off crypto.

Who do you blame if that happens? What leg do you have to stand on?

On the upside of crypto, is a picture of how this disruptive technology could potentially be a game changer, considering our unique socio-political conditions. Anyone who has needed to borrow, send or simply access money knows how tedious FICA and other processes can be. Adding financial, logistical and a time cost to critical processes, such as when migrant and displaced Africans need to send or receive money.

Imagine a world where your experience is not debilitated by “technical issue responses” or the very annoying and increasing bank fees we pay. Imagine completing a financial transaction within the blink of an eye, regardless of your geographical location or sociopolitical climate. I am convinced now more than ever that we already use value driven systems based on trust to invest our money into banks or even traditional systems such as, stokvels and money markets, cryptocurrency seems to require the same faith and trust in humanity through ubuntu (our nature to be good people and to do right by others).

The opportunities that cryptocurrency offers are endless – safe and pain free transactions, integrated communities, access for those previously locked out of the system. Here is a call for us to learn about how to use global platforms to shape Africa through our own lens. The prospects and possibilities hopefully leave you feeling hopeful, excited and with mental blocks unchained. The world is changing, as African leaders we can either be passengers or drivers in cultivating the way forward for the Africa we want.

Wenzile Msimanga- Madonsela

Co-Founder Unafundo, Children’s book author - Melos Kingdom Mental Health Activist, Speaker