Meet Ama, a mother of four who works at a lorry park in Accra, Ghana. Every month, she just watches as the purchasing power of her cedi continues to lose significant value, simply destroyed by hyperinflation. The cost of gari, a staple food, looks like it’s increasing every day. Her hard-won savings, earnestly acquired and preserved, are becoming drained of their value. This isn’t just an economic indicator—this is Ama’s daily reality, her children’s future. This is the sad reality for millions of people in Africa today.
Could Bitcoin DeFi offer Ama a lifeline? Might it offer some armor against the inflationary scourge that affects the economies of so many African countries? The enticing promise of Bitcoin DeFi is hard to resist during engaging discussion. From the laser lights of Bitcoin 2025 in Las Vegas to the trailblazing futures laid out by projects like Lombard Finance, Rootstock Labs, and Bitlayer, this enthusiasm is palpable. Before we break out the bubbly, let’s add some oxygen to the realism berry.
Accessibility: A Luxury, Not A Right?
Let's be brutally honest. Meanwhile, the expansive universe of Bitcoin DeFi crackles with talk of Layer-2 solutions and optimistic rollups and Ethereum-like staking yields. At the same time, in rural Ghana, these ideas seem like a million miles distance from the daily reality. We promote self-custody and decentralization, reduced costs and increased privacy. For Ama, who can barely afford data on her three-year-old smartphone, is this really ever going to be a reality?
Think about it. Only one person in the villages has regular internet access – and that’s at their job. How many have the digital literacy to engage with advanced DeFi protocols and not be swindled by bad actors? We believe in self-custody. What if, for example, they lose access to their private key? All of their money could disappear into the digital ether. Is it really radical if it’s available only to the few who already have the privilege of education and resources? In doing this, are we inadvertently creating a new wave of financial exclusion? This new digital divide may be even deeper than the one we intended to close.
Volatility: A Double-Edged Sword
Bitcoin itself is notoriously volatile. Tying DeFi applications to Bitcoin increases this risk exponentially. Market proponents such as Blockstream’s Adam Back have touted these L2 Bitcoin solutions as a way to deliver competitive staking yields. Are we truly considering the potential negative side? Imagine Ama, lured by the promise of higher returns, putting her meager savings into a Bitcoin-backed stablecoin, only to see its value plummet during a market crash. What health care safety nets exist for her?
True, stablecoins are supposed to be stable and that’s true in theory, but their peg can and will break often in the volatile world of crypto. And don’t overlook the constant danger of hacks and exploits, which have been known to take down whole DeFi protocols in a matter of hours. Are we really prepared to advocate for these solutions? We can’t ignore the embedded dangers, particularly for those who have the most to lose.
Regulation: A Friend or Foe?
In fact, African governments are still struggling with the proper means to regulate crypto. Some, as Nigeria, have taken a hard stance; others are being more measured. Regardless of the specific policies, one thing is clear: regulatory uncertainty looms large.
Governments might see Bitcoin DeFi as a threat to their control over monetary policy or as a vehicle for illicit activities. Now imagine that someday some government simply decides to outlaw Bitcoin DeFi, so that Ama can no longer access her savings. What recourse does she have? We must engage in constructive dialogue with policymakers to develop clear and fair regulations that protect consumers without stifling innovation. We need to promote beneficial innovation and prevent development by crisis. Most importantly, though, we need to protect our most vulnerable populations.
The way forward is not to just wholeheartedly promote Bitcoin DeFi as an off-the-shelf silver bullet solution. It’s not, because it’s about arming communities with the information and resources that they require to make the best decisions for themselves. It’s about widening the scope of educational efforts to fill gaps in digital literacy. That’s what we’ve done to help expand infrastructure to provide more people with broadband internet and get more people connected to mobile phones. It’s about empowering community-led efforts that increase financial inclusion and literacy through Bitcoin DeFi in a responsible, sustainable way.
That’s why we should heed the policy advice from young leaders like Ama. We have to sympathize with their challenges, but empathize with their aspirations. We have to make sure that Bitcoin DeFi is a force for empowerment and not a second broken promise.
So, I implore you, transportation and housing policymakers, developers, community leaders—everyone—to get on this fundamental wave of conversation. Join us as we work together to realize Bitcoin DeFi’s full potential. When we come together, we can shape it to be a powerful force for good across the continent. Let’s make sure Ama and millions more like her get the opportunity they deserve. United, we can help build a brighter, safer and more prosperous future for all! For if we don’t, we’re bound to make the same tragic mistakes of the past, pushing those who are most vulnerable even further behind.
