When Amos Oko, the CEO of Nigeria's Inclusive Finance Group (IFG), the first fully licensed financial company in Africa established in 2018, focused on small and medium enterprises and rural financial services in West Africa, publicly stated in mid-September that 'Bitcoin is a financial tool born for Africa,' this long-troubled continent, constrained by a lack of financial infrastructure, finally witnessed a landmark move of traditional financial institutions embracing crypto technology. IFG not only launched a feasibility study on incorporating Bitcoin into its financial operations (in collaboration with the Kenyan blockchain company BitPesa and the American compliance service provider Chainalysis) but also clearly positioned it as 'the core solution to break the financial exclusion of 60% of Africa's population without formal banking services'—from reducing cross-border remittance costs by 50% to shortening fund settlement in rural areas from 3 days to 5 minutes, Bitcoin is transitioning in Africa from a 'speculative target' to an 'infrastructure-level tool,' and IFG's exploration may become a blueprint for financial inclusivity practices across the entire African continent.
1. IFG's 'Breakthrough Motivation': The pain points of financial exclusion in Africa that Bitcoin can precisely address
IFG's choice of Bitcoin is not a trend-following move but is based on the precise matching of the 'structural pain points' of the African financial market with the characteristics of Bitcoin technology. These pain points are particularly prominent in West Africa:
60% of the 'basic service gap' of the unbanked population
According to the World Bank’s 2025 (Global Financial Inclusion Report), among Africa’s 1.28 billion population, 770 million (about 60%) do not have a formal bank account, with rural areas accounting for over 85%— in Nigeria, Ghana, and Benin, where IFG mainly operates, rural residents must walk an average of 12 kilometers to the nearest bank branch, and opening an account requires a fee of $30-50 (equivalent to 15%-20% of local residents' average monthly income), creating a very high threshold. Bitcoin only requires a smartphone (with mobile phone penetration in Africa reaching 72%, far exceeding bank branch coverage of 18%) and basic internet access to create an account, perfectly matching the needs of rural areas. Internal calculations by IFG show that if Bitcoin is used to provide 'micro-savings + transfers' services for rural users, the opening cost can be reduced to below $0.5, while service coverage efficiency increases by 10 times.
The 'high-cost trap' of cross-border remittances
Remittances are the 'economic lifeline' for many African countries— in 2024, remittance inflows to Africa reached $108 billion, with Nigeria and Ghana receiving $27 billion and $6.5 billion respectively. However, traditional channels have shockingly high costs: the World Bank states that the average remittance fee in Africa is 8.2% (compared to a global average of 4.5%), and the settlement period can last 3-5 days, with some funds through informal channels (like acquaintances) facing loss risks. IFG's feasibility study confirms that Bitcoin cross-border transfers can reduce fees to 2.8%-3.5%, with settlement times compressed to 10-30 minutes. For example, for a $1,000 transfer from a Nigerian to a relative in Ghana, traditional channels require an $82 fee and a 3-day wait, while the Bitcoin channel only requires $28-35 and half an hour for arrival, saving $47-54 per transaction, which is equivalent to 1-2 weeks of living expenses for families relying on remittances.
The 'asset preservation anxiety' from local currency fluctuations
Many African countries have long-term currency exchange rate instability: in 2024, the Nigerian Naira depreciated by 23% against the dollar, and the Ghanaian Cedi depreciated by 18%. If rural residents hold local currency savings, their value may shrink by nearly 20% in a year. The fixed supply of Bitcoin (21 million) makes it an 'anti-inflation tool'—IFG's research shows that in northern rural Nigeria, 38% of small vendors have already converted 10%-15% of their monthly income into Bitcoin for storage to avoid losses from currency depreciation. The 'Bitcoin anchored savings product' that IFG plans to launch targets this demand, allowing users to save micro-amounts pegged to Bitcoin at a 1:1 ratio, with a minimum deposit of just $10 (about 5,000 Naira).
2. IFG's 'Implementation Path': From feasibility study to pilot, closely linked to compliance and risk at every step
IFG has not blindly promoted Bitcoin integration but has set out a three-step plan of 'first researching, then piloting, and finally promoting', with a particular focus on compliance and risk control to avoid repeating the chaotic speculative situations seen in some African countries.
Step 1 (Q3-Q4 2025): Feasibility study + technical integration
Currently, IFG has formed a special team of 12 people, in collaboration with BitPesa (a local African blockchain payment service provider that has obtained a license from the Central Bank of Kenya) to solve the issue of 'connecting Bitcoin with local mobile currency'—the plan is to use BitPesa's API interface to enable users to conduct 'instant conversions between Bitcoin and local currencies (Naira, Cedi)' within the IFG mobile APP, while also connecting to Chainalysis's anti-money laundering (AML) system to ensure that each transaction is traceable and meets the regulatory requirements of the Economic Community of West African States (ECOWAS). Research focuses on three dimensions: first, user experience (how to make it easy for rural elders to operate), second, cost control (how to cover the technical costs of conversion fees), and third, risk hedging (how to address the impact of Bitcoin price fluctuations on user savings). Preliminary conclusions indicate that if a '70% Bitcoin + 30% stablecoin (USDT)' mixed reserve model is adopted, daily price fluctuation risks can be controlled to within 3%.
Step 2 (Q1-Q2 2026): Small-scale pilot, focusing on remittances and rural savings
IFG plans to select two pilot regions: one is Lagos State, Nigeria (where remittance inflows are concentrated, accounting for about 45% of the national total), targeting Nigerians working abroad, launching a 'Bitcoin remittance channel', allowing users to transfer Bitcoin into IFG accounts through overseas partner platforms (like Wirex in the UK), with family members in Nigeria exchanging it for Naira via the IFG APP or directly using it for payments (IFG has connected with 2,000 local small vendors, supporting Bitcoin for consumption deduction); the second is the Savanna region in northern Ghana (where the rural population accounts for 92%, and bank coverage is less than 5%), testing 'Bitcoin micro-savings', collaborating with local community leaders to conduct user education, teaching villagers how to complete Bitcoin savings and transfers via mobile phone. During the pilot period, the plan is to serve 10,000 users, aiming to reduce remittance costs from 8.2% to below 3.5% and increase the rural savings account opening rate to 20%.
Step 3 (after Q3 2026): Adjust based on pilot results and gradually promote to five West African countries
If the pilot results meet expectations (user satisfaction exceeds 80%, risk event occurrence rate below 1%), IFG will promote the model to Benin, Togo, Côte d'Ivoire, and other West African countries, planning to connect to the regional payment system of the West African Economic and Monetary Union (UEMOA) to achieve cross-border settlement of 'Bitcoin + regional common currency (West African Franc)', further expanding the coverage of financial inclusion.
3. The 'Double-Edged Mirror' of African cryptocurrency regulation: coexistence of support and bans, how does IFG balance?
IFG's Bitcoin exploration cannot avoid the differentiated regulatory environment in various African countries—this is both a challenge and a key basis for precisely selecting pilot areas:
Supportive countries: providing compliance frameworks, becoming preferred pilot locations
Countries such as Nigeria, Kenya, and Ghana have established regulatory frameworks for cryptocurrency assets to provide space for institutional practices: Nigeria's Securities and Exchange Commission (SEC) issued rules in 2024 (for digital asset service providers), allowing licensed institutions to provide exchange services for cryptocurrency and fiat currency; Kenya's central bank issued 'digital asset payment licenses' to five companies including BitPesa in March 2025, clearly stating that Bitcoin can be used for cross-border payments. IFG chose these three countries as pilots precisely because the compliance paths are clear, and there is no need to worry about sudden policy changes.
Countries with prohibition policies: short-term avoidance, long-term observation
Countries like Algeria and Morocco still prohibit cryptocurrency trading. IFG will not enter these markets in the short term but will continue to monitor policy trends— for example, the Bank of Morocco has initiated 'cryptocurrency regulatory research' in Q2 2025, and may relax restrictions in the future. IFG plans to establish contact with local financial institutions in advance to pave the way for future entry.
Proactive communication with regulators: becoming a 'participant in the rules'
IFG is not passively adapting to regulation but actively participating in policy formulation: CEO Oko has represented African financial institutions in the revision meetings of Nigeria's SEC regarding 'digital asset service standards', proposing 'exemption clauses for cryptocurrency assets in financial inclusion scenarios'— for example, suggesting that transactions involving Bitcoin remittances below $500 simplify anti-money laundering audit processes to reduce compliance costs. This 'proactive communication' strategy can reduce regulatory risks and secure a more favorable policy environment for the industry.
4. Risk response: avoid speculation, focus on 'structural advantages'
IFG repeatedly emphasizes 'not pursuing the speculative value of Bitcoin', but instead focusing on the 'structural advantages' of its technology, and has formulated three major risk response measures:
Price fluctuations: mixed reserves + limited trading
To avoid users being adversely affected by Bitcoin price volatility, IFG plans to adopt a '70% Bitcoin + 30% USDT' mixed reserve pool. When Bitcoin's daily drop exceeds 5%, it will automatically convert part of Bitcoin into USDT to stabilize users' asset values; at the same time, a 'daily transaction limit' is set—individual users have a daily Bitcoin exchange limit of $1,000 to avoid large speculative transactions.
Security risks: dual protection of custody + insurance
The secure storage of Bitcoin is a core challenge. IFG has chosen to partner with the U.S. custodian Fireblocks, storing 90% of Bitcoin in cold wallets and only 10% for daily transaction liquidity; simultaneously purchasing cryptocurrency asset insurance (coverage of $50 million), so that in the event of a hack leading to asset loss, the insurance company pays the full amount to ensure user fund safety.
User education: community-led, simple and easy to understand
Most rural users in Africa have insufficient understanding of cryptocurrencies. IFG plans to collaborate with local community leaders and mobile money agents to conduct 'offline + online' user education: offline through 'market seminars', explaining the basic principles of Bitcoin in local languages (e.g., 'preserving value like digital gold'); online by producing 1-2 minute short video tutorials, teaching users how to complete savings and transfers in the APP, thus avoiding asset losses due to operational errors.
5. Industry impact: A 'new starting point' for African institutional cryptocurrency practices
IFG's exploration has already attracted attention from the African financial industry, with multiple institutions beginning to follow: Kenya's Equity Bank (one of Africa's largest retail banks) has initiated internal research on 'Bitcoin cross-border payments', while Ghana's Access Bank plans to cooperate with IFG to share pilot data. This model of 'leading institutions taking the lead + industry collaboration' may change the previous pattern of 'individual speculation as the main focus' in the African cryptocurrency market, promoting cryptocurrency technology to genuinely serve the real economy.
Sara Cohen, the World Bank's financial advisor for Africa, commented: 'IFG's practice proves that Bitcoin is not a 'panacea' for Africa's financial problems, but an 'effective tool' to address financial exclusion— it does not require rebuilding complex banking networks but utilizes existing mobile networks to bring financial services to the most remote rural areas.'
Summary: Bitcoin 'opens a door' for financial inclusion in Africa
As Africa's first financial company anchored in Bitcoin, IFG's core value in its exploration lies in repositioning Bitcoin from a 'speculative asset' back to a 'financial infrastructure' role, leveraging the decentralized nature of technology to solve the challenges of inadequate traditional financial infrastructure in Africa. From reducing remittance costs to serving the unbanked rural population, and combating local currency depreciation, each application scenario of Bitcoin precisely addresses the pain points of the African financial market.
Although still facing challenges such as regulation, security, and user education, IFG's 'step-by-step pilot + compliance priority' strategy provides a replicable blueprint for the industry. As the pilot progresses, if it achieves the goals of 'reducing costs, increasing efficiency, and broad coverage', Bitcoin may become one of the 'core pillars' of financial inclusion in Africa.
To track the progress of IFG's Bitcoin pilot, changes in African cryptocurrency regulation, and more case studies of cryptocurrency practices in emerging markets, continue to follow the old kkkk. Subsequent sharing will include pilot data, user feedback, and industry interpretations to help everyone seize new opportunities for the implementation of global cryptocurrency technology!
