2024 Poised to be A Significant And Transformative Year For Fintech: An Outlook on Africa
Fintech enthusiasts and experts have disclosed that the year 2024 is poised to be a defining chapter in the evolution of Fintech globally.
According to insights by Swiss-based financial advisory organization deVere Group, it disclosed that globally, fintech is undergoing rapid and transformative changes, with soaring demand for mobile payments, cyber security, and global financial inclusion.
The firm predicts that the notable continued rise in the adoption of cryptocurrencies, especially by financial institutions, will play an important role in facilitating cross-border transactions, thereby reshaping the global financial landscape.
The firm wrote,
“This growing acceptance of crypto-currencies by traditional financial institutions, along with regulatory clarity in many jurisdictions, is likely to contribute to their mainstream adoption. We predict that crypto will play an increasingly important role in diversifying investment portfolios and facilitating cross-border transactions, thereby reshaping the global financial landscape.
“Several central banks around the world are actively exploring or developing their own digital currencies, aiming to modernize payment systems and enhance financial inclusion. CBDCs offer governments greater control over monetary policy and the ability to streamline financial transactions.
“Additionally, these digital currencies have the potential to reduce the reliance on cash and improve the efficiency of cross-border payments. As more central banks pilot and implement CBDCs, 2024 is expected to mark a crucial turning point in the evolution of digital currencies within the mainstream global financial system.”
An Outlook on Africa
In Africa, the fintech sector has been a beacon of financial inclusion, transforming the economic landscape by providing accessible and affordable financial services to previously underserved populations.
With the cryptocurrency market surging on the back of booming usage of blockchain-based payments across the region, several African countries have gone ahead to establish regulations for digital assets.
It is interesting to note than initially, African banks and central banks have been hesitant to adopt cryptocurrencies due to their high volatility, complexity, and their perceived threat to a country’s monetary sovereignty, however, they have made a U-turn on that decision.
For instance, the Central Bank of Nigeria in December 2023, changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto transactions. The apex bank stated that current trends globally have shown the need for crypto regulation.
Also, fintech companies across Africa are beginning to integrate crypto payments on their platforms, offering users the ease of payments.
Notably, the rise and adoption of crypto-currencies and CBDCs paints a picture of a dynamic and transformative year for the financial technology sector, especially in Africa.
