Kenya Promotes Bitcoin Payments Amidst Expert Warnings on Volatility Risks

In Nairobi, Kenya, residents can easily make payments through Bitcoin wallets. In the Kibera slum, waste collectors receive their wages in Bitcoin, and approximately 200 individuals are using Bitcoin for transactions. Vendors at local markets are also displaying large QR codes to encourage people to pay with mobile scans. Waste collector Onesmus noted, "I have been using Bitcoin for about a year and a half. Since I discovered Bitcoin, it has been great; firstly, it helps avoid the need to carry a lot of cash, which can make you a target for thieves, and it's very easy to buy anything with just a scan."
Promoted by the fintech company AfriBit Africa, the Bitcoin initiative aims to provide financial services to Kenya's poorest communities that lack banking infrastructure. Observations from AfriBit Africa suggest that Kenya's younger generation is highly receptive to new technologies, and with Bitcoin, residents no longer need to provide documentation to open accounts. Co-founder Mdavida stated, "Often, residents of Kibera don’t have the opportunity to secure their livelihoods through savings, as they are excluded from the primary financial system, making it difficult to integrate into any mainstream financial services. Bitcoin is recognized by many and has a low entry barrier; it requires no documentation, and individuals can create an account in just two minutes to receive payments, transfer funds, and save for the future, essentially becoming their own banks, with nobody controlling their money, laying the foundation for their financial freedom."
According to AfriBit Africa, they have already circulated around $10,000 worth of Bitcoin in Kibera. However, experts warn that the volatility of cryptocurrency can pose significant risks to such vulnerable communities. Kasim, chair of the Kenya Fintech Alliance, remarked, "In general, there are many positive cases of cryptocurrency operating globally, but it's like building a 50-story building without a foundation." In addition to the wallet application, using Bitcoin also requires a smartphone and internet access.
Despite the challenges that remain, AfriBit Africa remains optimistic about providing hope for local residents regarding their financial futures.