Cryptocurrency adoption is growing across Africa, driven by factors such as financial inclusion and diverse uses. However, regulatory ambiguities and security concerns cloud the optimism surrounding the technology.

U.S. financial technology company Visa announced a partnership with Web3 infrastructure provider Transak to offer cryptocurrency withdrawals in fiat currencies to Transak users in 30 African countries, according to a January 30th post on Transak's X account.

The service will utilize Visa Direct, a real-time money transfer solution, allowing users to convert over 40 cryptocurrencies into local fiat for spending at millions of Visa-accepting merchants.

"By enabling real-time card withdrawals through Visa Direct, Transak is delivering a faster, simpler, and more connected experience for its users — making it easier to convert crypto balances into fiat, which can be spent at the more than 130M merchant locations where Visa is accepted," said Yanilsa Gonzalez-Ore, head of Visa Direct and global ecosystem readiness for North America at Visa, in a statement.

Africa has emerged as a global leader in cryptocurrency adoption, with transactions in sub-Saharan Africa reaching $117.1 billion between July 2022 and June 2023, according to Chainalysis data. Nigeria leads the continent with $56.7 billion in transactions during the same period and ranks second globally in the Chainalysis Cryptocurrency Adoption Index.

"We believe this partnership is an inflection point for Web3 as a whole. Now, millions across the globe have a straightforward way to cash out their digital asset holdings to their local currency in real-time and intuitively," said Sami Start, co-founder of Transak.

Adoni Conrad Quenum