GB Market Commentary 26/05/2022
by Marcus Sotiriou
Whilst Bitcoin continues to consolidate sideways, adoption in Africa continues to surge. Africa blockchain start-ups brought in $91 million in the first quarter of 2022 alone, a 10x increase from the first quarter of 2021.
One VC firm in particular, Crypto Valley Venture Capital (CVVC), the Switzerland-based venture capital (VC) firm, has launched an African blockchain early-stage fund.
The VC said that the objective of the accelerator is to fund 100 start-ups from Africa in the next 4 years. So far, CVVC has invested in 12 blockchain start-ups whose business models go beyond cryptocurrencies.
Remarking on CVVC’s launch of the blockchain fund as well as the publishing of the inaugural African Blockchain Report, Véronique Haller, Chargée d’affaires at the Swiss Embassy in South Africa said: “Blockchain has the potential to be a catalyst for positive change and shape the future of our continent. With data in and around blockchain in Africa still scarce, the first Africa Blockchain Report will be an important milestone.”
Furthermore, the Central African Republic is set to launch Africa’s first Bitcoin and crypto investment hub after the country made Bitcoin legal tender last month. I think crypto in general has an important role to play in Africa, as many Africans lack access to financial institutions. In addition, CVVC are trying to provide financial records to the population through blockchain technology which they would not have otherwise.