Strike, a Bitcoin-focused payments application developed by Chicago-based startup Zap, is extending its services to the African continent, as announced by founder and CEO Jack Mallers. The expansion, known as Strike Africa, encompasses markets such as Gabon, Ivory Coast, Malawi, Nigeria, South Africa, Uganda, and Zambia, with plans for further expansion in the region.
Similar to Cash App or Venmo, Strike utilizes blockchain technology for sending and receiving money, offering users the ability to buy and sell Bitcoin (BTC) and Tether’s dollar stablecoin (USDT). Additionally, Strike Africa provides local fiat currency on-ramps and off-ramps, along with global payments leveraging Bitcoin’s Lightning networkNetwork The set of computers connected to each other, called nodes, on which the blockchain of a specific cryptocurrency is based., facilitating inexpensive and rapid transactionsTransaction Exchange of value, property, or data between two parties. for transfers and cross-border payments.
The move comes as Bitcoin and stablecoins witness increasing demand for savings and remittances in developing countries plagued by high inflationInflation A sustained increase in the general price level of goods and services in an economy over time. and fragile financial systems, such as Argentina and Turkey. Notably, Nigeria, the largest market in Africa, has seen significant crypto adoption, with citizens turning to digital assetsAsset An economic resource with value that an individual or organization owns, controls, or expects future benefits from. Examples of assets: gold, stocks, cryptocurrencies, etc. as a hedgeHedge An investment used to reduce the risk of another investment. For example, gold is often seen as a hedge against inflation because its price tends to rise when the value of currency falls. against local currency devaluation. This trend has been accentuated by recent volatility in the Nigerian naira, which depreciated by nearly 50% against the U.S. dollar in a single month.
Strike’s expansion into Africa reflects the growing recognition of cryptocurrencies as viable solutions for financial inclusion and stability, underscoring the broader shift towards decentralized finance (DeFi) in emerging economies. (Source: Coindesk)