In a remarkable development, around 200 people in Kibera, the largest slum in Kenya, are adopting Bitcoin for everyday use. Three years of local activism have brought Web3 adoption to Nairobi’s poorest workers.
However, on-the-ground reporting showed that many of these adopters are primarily interested in Bitcoin’s growth potential. Building a crypto community in these conditions is possible, but it’s extremely difficult.
Bitcoin as a Lifesaver for Kenya’s Unbanked
The US Bitcoin ETFs have greatly transformed the crypto industry, driving institutional adoption for the premier cryptocurrency. Businesses and institutions now see Bitcoin as a store of value and a reserve asset.
However, Satoshi’s vision for BTC was much more decentralized, meant to serve those who abandoned the traditional financial system. While that vision hasn’t quite materialized in the West, developing regions show a different story.
New reports show that hundreds of people in Kenya are adopting Bitcoin for everyday transactions.
Specifically, ABC credited AfriBit Africa, a fintech startup that has been working in Kenya since 2022, with inspiring this Bitcoin adoption.
It managed to provide grants to local garbage collectors to accept their salary in BTC, a decision that has multiple obvious benefits. From here, vegetable sellers and other local entrepreneurs began joining the trend.
In addition to lower fees than ATMs, Kenya’s poorest citizens could gain several other advantages from Bitcoin. Although crypto-related robberies and kidnappings are rising in the first world, carrying cash is much more dangerous in Kibera.
Additionally, Bitcoin brings in high returns, allowing users to profit from their earnings.
Still, there are many obstacles. Kibera, Kenya, has an estimated population of 250,000 to 1 million people, but only around 200 of them use Bitcoin.
Web3 access doesn’t require a bank account, but it does require a device, power, and an internet connection. Furthermore, that’s not even the biggest issue.
On-the-ground reporting revealed that many of these 200 Kenyans are using Bitcoin primarily as a speculative asset, just like their counterparts in the West.
Journalists found and interviewed multiple residents who put 70% or 80% of their net worth into BTC. In other words, the optimistic claims about daily adoption may be exaggerated.
For these people, why spend the asset on everyday goods when it can grow on a daily basis? And yet, if Bitcoin crashes, this overexposure could bring catastrophe to some of Kenya’s poorest residents.
Moving from these usage patterns to a genuine crypto community will take education, investment, and time.
All that is to say, it’ll take more than one startup to truly bring Bitcoin to Kenya. AfriBit’s grants, which amounted to over $10,000, gave this adoption a shot in the arm.
If the grants were to dry up, this fledgling community would not prove sustainable.
Yet, it’s still a positive sign of how crypto is slowly but surely helping the unbanked population gain financial access in an environment where traditional institutions and banks only serve the upper social class.
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