Bitcoin in Senegal: Why is this African country using BTC?

Dakar, the superior of the West African federation of Senegal, present boasts an yearly Pan-African Bitcoin conference, implicit 10 merchants accepting Bitcoin, a section peer-to-peer BTC speech and a budding Bitcoin community.

What’s more, the velocity astatine which Bitcoin’s advancement is unwinding is staggering. The metropolis hosted the DakarBTC Days league conscionable 10 months aft the country’s archetypal “in existent life” Bitcoin meetup. All of this is contempt a brutal carnivore market that has enactment a large dent successful Bitcoin adoption.

Why is Bitcoin bubbling successful Senegal? Is this state connected the path to “hyperbitcoinization,” oregon astatine slightest much entrenched Bitcoin adoption and use? Could Senegal beryllium the adjacent state to travel in El Salvador’s footsteps?

I wanted to find out. I had missed retired connected the inception of Bitcoin Beach successful El Salvador successful 2019, truthful I wanted to research what a bottom-up, Bitcoin-circular system mightiness look similar successful West Africa. This is that communicative truthful far.

A assemblage currency

The West African Economic and Monetary Union CFA franc is an atrocious currency. The French created it; they power its conversion rate; they adjacent plan and people the notes for usage successful Africa. A Frenchman sitting successful the historical assemblage municipality of Clermond-Ferrand conjures up the designs successful usage connected CFA notes utilized by millions of Africans crossed 13 countries — contempt the information that they mightiness ne'er person acceptable ft successful Africa.

The CFA is presently pegged to the euro astatine a fixed complaint of 655.957 to one. In 1994, the peg with the erstwhile French franc was slashed from 1:505 to 1:100. The currency devaluation, instigated by France and successful collaboration with the World Bank and the International Monetary Fund, wiped retired the savings of the Senegalese people. To headdress it each off, French officials beryllium connected determination cardinal slope boards crossed French-speaking Africa and inactive clasp important powers, including veto rights.

Alex Gladstein of the Human Rights Foundation erstwhile explained, “Unlike a emblematic fiat currency, the strategy was acold much insidious. It was monetary colonialism.”

From Cuba to Turkey, South Africa to Serbia, I person ne'er seen a greater request oregon request for monetary emancipation than successful Central oregon West Africa, and the astir apt campaigner for West Africa’s economical and monetary state is Bitcoin.

Making lightning connections

On Twitter successful January 2022, I noticed that a fewer bars successful the ex-pat country of Dakar person begun accepting Bitcoin. You tin wage for a crêpe oregon a bissap (a refreshing section portion made with hibiscus flower) implicit the Lightning Network, astatine a spitting region from the beach. 

My thoughts instantly spell to El Salvador’s grassroots adoption initiative, Bitcoin Beach, the efforts of which culminated in Bitcoin becoming ineligible tender successful El Salvador. I cognize astatine erstwhile that I indispensable talk to the idiosyncratic down these efforts. 

A tall, softly-spoken Senegalese antheral who spent a chunk of his nonrecreational beingness moving successful France, Nourou (not his existent name), is simply a Bitcoin advocator similar nary other. 

Nourou points to the wings of Africa during an interview.

He returned to Senegal successful 2021 and was disappointed to spot that his friends and adjacent household members had mislaid wealth to “Ponzi schemes similar Petronpay — things similar that — oregon limo” and different fashionable crypto scams successful Africa. “So, we acceptable up the Bitcoin successful Senegal community,” helium tells Cointelegraph.

“I was the archetypal 1 successful our archetypal e-meet connected Clubhouse. We were possibly 3 oregon four, but I kept going with 2 sessions per week, past 1 league per week due to the fact that we utilized to person 10, 20 […] sometimes hundreds of radical listening in.”

He arrived successful Senegal astatine the onset of COVID-19. However, the pandemic chaos did not dash his dreams of making Bitcoin the go-to currency successful his homeland.

Peer to peer

While traveling successful Senegal successful February 2022, I attended the country’s first-ever Bitcoin meetup. Not lone was this a milestone lawsuit successful of itself — arsenic antecedently meetups were conducted online oregon connected the exertion Clubhouse — but the caliber of the guests successful attendance is jawdropping. 

The country is brimming with nonfungible token promoters, Bitcoin maximalists, entrepreneurs, cardinal bankers and adjacent professors from Dakar’s astir prestigious universities. The ambiance is simply a stark opposition with the Bitcoin meetups I usually be successful Europe oregon America, where, to beryllium frank, it’s a clump of achromatic Millennial males preaching the autumn of fiat currencies.

Senegal’s archetypal in-person BTC meetup successful February 2022. Nourou is 2nd from right, portion I americium 5th from near (back row).

I besides spot Nourou onboard 3 much restaurants onto the Bitcoin network. Interestingly, a batch of these merchants usage Bitcoin successful its purest form: a peer-to-peer currency system. 

They judge Bitcoin-based oregon Lightning transactions, and they clasp onto it with the intent of utilizing Bitcoin arsenic wealth successful a circular economy. Nourou is gathering an app that allows merchants to currency retired into section currency and offers a personalized work wherever they tin get their hands connected currency if request be. 

I near Senegal successful March 2022 with a outpouring successful my step. I felt inspired by the information that, successful the places that request it most, determination are enthusiastic Bitcoin radical devoting their clip and efforts to educating others astir wealth and, ultimately, Bitcoin. 

Now, fast-forward to August 2022, and I couldn’t rather judge that Nourou is texting me, saying helium had plans to big a Bitcoin forum successful Senegal. It volition beryllium the archetypal clip that Bitcoiners from each implicit the satellite would assemble connected the African continent to stock their passionateness for Bitcoin and strategize however champion to follow the currency. 

I vowed to myself that I perfectly indispensable attend. Not lone is this a state that I’m progressively attached to but I afloat privation to observe, enactment and study connected the Bitcoin movements successful Senegal and greater West Africa. 

Dakar Bitcoin Days 

Dakar Bitcoin Days gathered enthusiasts and economists from crossed Africa, successful a pan-African solemnisation of magic net money. From Cameroon to the Congo, Mali to the Ivory Coast and the Central African Republic, determination were funny parties from each implicit the continent. As Nourou says successful an interrogation portion pointing astatine the continent of Africa, “Africa volition alert if we each spell together.”

With Nourou backstage up of the commencement of the conference.

France is the authoritative connection successful Senegal, portion Wolof is by acold the astir wide spoken. One of the unsocial and well-thought-out aspects of this league is that determination are Dakar Bitcoin Days talks successful 3 languages — English, French and Wolof — with events successful the second attracting the highest attendance. 

The league features beginner-friendly seminars that interaction connected the economy, finance, information and Bitcoin fundamentals. For experts, panels connected cryptography instrumentality place, portion debates specified arsenic “Is Bitcoin Halal?” supply taste insights into utilizing Bitcoin successful Senegal, a 97% Muslim country. Plus, the demographics skew incredibly young: The mean property successful the state is astir 19 and the league is brimming with students and young people.

During the league and successful conversations, Nourou shares his imaginativeness for Senegal with me. Senegal volition pb West Africa retired of the acheronian of currency colonization, helium explains. However, determination needs to beryllium a level of decentralization successful the messaging regarding Africa:

“I privation the connection to switch. Africa is not a state — it is simply a continent. That’s wherefore we telephone it Dakar Bitcoin Days: If you travel to Senegal, you volition conscionable Senegalese; if you spell to Mali, you conscionable Mali people.”

There mightiness beryllium immoderate similarities, specified arsenic immoderate shared histories and overlapping cultures successful Africa, but helium explains that Africa is conscionable arsenic varied oregon much than Europe. Much similar Bitcoin, the question is decentralized. Each portion and country of Africa volition yet tally with and follow Bitcoin.

That’s not to instrumentality distant from the tremendous consciousness of Pan-Africanism that Africa benefits from. It’s thing that that Europeans oregon Americans arsenic a continent whitethorn not subordinate to. I americium British and European, but I bash not subordinate with a Serbian the mode that a Senegalese whitethorn subordinate to a Zimbabwean, contempt being thousands of miles apart.

Bitcoin successful Senegal

During the conference, I besides acceptable retired to interrogation merchants who judge Bitcoin. I talk to the proprietor of a French ex-pat barroom that has precocious begun accepting Bitcoin. Despite being wholly caller to decentralized currency, the proprietor, Gary, is blessed to spot caller customers coming to his barroom acknowledgment to Bitcoin. While we were there, we managed to person him to judge Bitcoin astatine his brand-new tattoo parlor.

A tattoo parlor present accepting BTC.

Senegalese surf squad manager Renée Laraise managed Praïnha, the archetypal edifice to judge Bitcoin. As 1 of Senegal’s champion sporting exports aft shot (Senegal won the African cupful of Nations successful 2022), he’s a person and a trusted dependable successful the community. 

I besides interrogation Mama Bitcoin, who has been trading Bitcoin for food connected the Atlantic seashore for the past 3 years. It’s a visionary determination successful a state wherever currency reigns king and banking services are mostly for the financially privileged. Banks successful West Africa complaint precocious fees and incur strict idiosyncratic requirements: Withdrawing cash, for example, tin outgo a fewer dollars. 

Throughout my 2nd travel to Senegal, I springiness retired Bitcoin to much than 70 people. The process is simple: I inquire them to download a Lightning wallet, usually Wallet of Satoshi, and they pat receive.

The wallet is custodial, meaning they don’t really clasp the keys to their Bitcoin. As a result, they are trusting that Wallet of Satoshi volition not execute a Sam Bankman-Fried and tally disconnected with the funds, but for newbies, I deliberation it’s a large spot to start. 

I nonstop them a fewer 1000 satoshis, which is possibly a dollar oregon 2 successful Bitcoin. I find it casual to manus retired sats successful Senegal successful examination with different countries to which I travel. People are anxious to get clasp of money, and they are anxious to learn, commercialized oregon simply prevention with a currency that cannot beryllium debased oregon stolen successful the mode that the CFA can.

I springiness distant escaped Bitcoin to conference-goers. As you tin spot from onlookers smiling away, it became portion of the conference’s entertainment.

I gave distant sats connected the beaches, connected the sidewalk, during the conference, successful restaurants and bars, to taxi drivers, and successful tips to the edifice staff. 

For the astir part, I springiness Bitcoin to young people, boys and girls aged thing from 16 upward and young men. Whereas the mean property successful the United States is astir 40, Senegal is simply a precise young population. It’s nary astonishment that a mobile native, internet-based currency would alert if it was fixed the close to instrumentality disconnected successful Africa. 

It makes maine wonder, Why are radical truthful keen to get clasp of Bitcoin here? Well, it’s because, successful the West, we bargain Bitcoin done exchanges; a prime fewer individuals bargain peer-to-peer, and a tiny slither of Bitcoin enthusiasts really gain Bitcoin. In West Africa, it’s precise hard to get your hands connected the coin. 

Worse still, it’s precise hard to unafraid Bitcoin. None of the established hardware wallets similar Ledger, Trezor oregon ColdCard vessel to Senegal. Ledger sponsored the league and whitethorn commencement shipping to West Africa, but it’s presently a superior symptom point.

In airy of these barriers and opportunities, it gives greater credence to the thought that a Bitcoin-circular system could instrumentality disconnected successful Senegal. People privation Bitcoin; determination are nary exchanges to bargain from, and planetary tourists coming to Senegal tin walk Bitcoin. Bitcoin could, therefore, tread a way to becoming peer-to-peer money, arsenic its achromatic insubstantial intended, successful the country.

Mobile wealth meets Lightning

Plus, mobile wealth networks person taken basal and flourished crossed Africa. First rising to fame successful Kenya, wherever the globally recognized mobile wealth institution M-Pesa was founded, mobile wealth companies person popped up crossed Africa similar Apple Stores successful European cities. Most Africans nowadays person a smartphone — they mightiness not person regular energy oregon entree to escaped drinking h2o — but they tin get online.

Failing that, it is highly apt that individuals person an SMS mobile phone: an old-style telephone that tin nonstop and person texts. Thanks to mobile money, users tin nonstop and person payments overmuch similar a slope transfer. You tin simply substance your friend’s telephone with credit. In Senegal, the biggest mobile payments institution is called Wave.

The Wave logo is recovered successful taxi companies, restaurants, bars and cafés. It’s a spot similar the Lightning Network, but it’s slower, a batch much expensive, and it uses section currency.

I effort to way down an worker astatine Wave to orange-pill them — and present them to the Bitcoin web — and arsenic luck would person it, I bump into 1 successful a barroom portion watching the World Cup. I instantly inquire him to download a wallet and sent him immoderate Bitcoin. The net connectivity was precise patchy wherever we sat, truthful it wasn’t the best, and it took a fewer seconds, cue “Network Error.”

I link to the bar’s WiFi and nonstop him the Bitcoin. He was impressed and said he’d travel on to the league the pursuing day, but I didn’t spot him again. 

There was a comic infinitesimal during the interrogation with the selling manager from Wave. He shared that helium met and hung retired with Satoshi successful Senegal. Apparently, helium was a VC benignant of feline who went around, drunk arsenic a skunk, partying and investing successful companies. 

The look you marque erstwhile idiosyncratic says they cognize Satoshi.

However, it gets maine reasoning — you person a state that is accustomed to transacting via mobile phone, utilizing thing but a mobile number. That’s contempt the information that the UX for mobile wealth is rather clunky. Yet everyone and their goat (yes, I effort to interrogation a goat astir Bitcoin — spot our documentary), knows however to usage it. 

Senegal has a power-sapping currency, a young, digitally autochthonal population, Bitcoin leaders and mentors successful respected positions successful society, an yearly conference, an expanding fig of merchants accepting Bitcoin, and arsenic evinced: It is culturally acceptable to nonstop wealth via mobile phones. 

It’s different instrumentality successful Africa’s Bitcoin toolbelt and a mode successful which the continent could efficaciously leapfrog the developed world. Why can’t we leapfrog mobile wealth with the Lightning Network?