Traditional banks across Africa are showing newfound interest in cryptocurrency as projections for more transparent regulations grow.
This is in contrast to previous times when many financial institutions avoided conversations about digital assets.
Chris Maurice, the CEO of Yellow Card Financial Inc., a pan-African cryptocurrency exchange, revealed this trend during an interview. He noted, “We’re having conversations with banks and other major financial institutions that a couple of months ago, they didn’t want to hear about crypto, they didn’t want to talk about it. Now these guys are calling us, they’re interested. They want to understand how do they get into the space. I think obviously part of it is the Trump effect.”
The recent inauguration of U.S. President Donald Trump, who is seen as crypto-friendly, is believed to be a stimulus for this regulatory change. Maurice, speaking about this development in the U.S. and how it could inspire a quicker pace of regulation across Africa, said:
“With the US moving this way, I think you’ll see a lot more speed from various governments in Africa in terms of achieving regulatory clarity. This gives us more confidence that over the next year or so, we’ll see sweeping regulatory changes across the continent,” he stated.
Currently, most African nations lack comprehensive laws governing cryptocurrencies, with central banks closely monitoring activities over concerns like capital flight and currency stability.
High-profile cases, such as the arrest of a Binance executive in Nigeria last year, stress the challenges faced in the region. Nonetheless, Maurice noted a noticeable transition in perception since Trump’s election, with governments beginning to explore regulatory frameworks for the crypto market.
Africa has already accelerated in cryptocurrency adoption. Nigeria, for instance, ranks first globally in stablecoin usage and second in overall crypto adoption.
Other African countries like South Africa, Kenya, and Ghana are also among the top 20 globally. Maurice credited this adoption to the practicality of cryptocurrencies for international remittances and as a tool for small and medium-sized businesses using stablecoins for transactions.
“The question now is whether the continent can sustain this momentum and keep its lead,” Yellow Card CEO stated regarding the cryptocurrency adoption rate. He added that ongoing discussions in countries like Nigeria, Kenya, Rwanda, and Ghana provide the necessary confidence for companies to invest and expand.
Yellow Card, which operates in 20 African countries, traded over $3 billion in cryptocurrency last year. The company has not yet secured a permanent operational license in Nigeria but is positive about future opportunities. “These developments give companies the confidence to invest, hire more, and grow their teams,” Maurice said.
The Nigerian Securities and Exchange Commission (SEC) has taken steps to regulate the industry, recently granting approval-in-principle to two crypto exchanges, Quidax and Busha, under its Accelerated Regulatory Incubation Program.
Again, four other digital asset platforms are undergoing assessments under the Regulatory Incubation Programme, which Maurice hopes will bring about greater industry growth.
