According to some Kenya-based activists, raising funds through digital assets and non-fungible tokens (NFT) sales is not only faster but less expensive as well. The activists also expressed that digital assets also have the potential to create new ways for young people to earn, spend, save and send funds.
After the Covid-19 pandemic caused traditional funding channels to evaporate, some African activists applied measures like raising funds through digital assets and non-fungible tokens sales. The raised funds have ensured the development of activists and kept their activities unrestrained by any pandemic-related situation.
Although digital assets are still relatively new to some activists, a director of a nonprofit foundation headquartered in the Kenyan slum known as Kibera mentioned that these assets are the faster method of saving and raising funds.
According to the activist, raising funds through digital assets was a new activity for him and regular citizens. But this activity would change how citizens apply social welfare activities because they have seen how fast they can move through fundraising.
According to the report, “Khainga Human Needs Project” got involved in placing a plastic-made sculpture of a giant tap. This sculpture was an artwork made by Benjamin Von Wong, an artist/activist that belongs to a community focused on activities against plastic waste. Together, they had already collected $110,000 via NFTs, and these funds helped achieve the installation of the giant plastic sculpture.
Crypto Reduces Barriers to Entry
According to Roselyne Wanjiru, a researcher at the Blockchain Association of Kenya, besides being the most secure and fastest method of raising funds, crypto reduces barriers to entry. She added that more entities and individuals are switching to fintech because of this situation.
The report also mentioned Scott Onder, a senior managing director at Mercy Corps Ventures, explaining why digital assets seemed to be a better alternative for moving funds across borders.
Digital assets remove this costly barrier and bring the possibility of creating new methods for young citizens to earn, spend, save and send funds.
While critics often consider the energy flaws of digital assets such as bitcoin, Big Mich, a Kenyan choreographer, and a youth trainer, expressed that the good things about technology must get considered. According to Von Wong, any fundraising approach which makes it easier to move funds is perhaps one of the best things that could happen to the local economy.
Bitcoin as Legal Tender in Africa
The Central African Republic has greenlighted Bitcoin as legal tender, and yes, it is the second nation worldwide to do so. The Central Africa Republic is one of the world’s poorest countries but is rich in diamonds, gold, and uranium. The move placed The Central African Republic on the map of the world’s most visionary countries.
On the other hand, El Salvador became the first nation to accept Bitcoin as an official currency in September 2021. This move got criticized by many economists, including the International Monetary Fund, which said it increased the risk of financial instability.
By: Jenson Nuñez
