Inclusion and Prosperity: Moving the Needle on Adoption in Emerging Markets

- “Where in the rest of the world, you have transaction volume going down, we have volume going up because it’s very much utility driven.”

- It may be important not to rush into the regulatory framework too early as it may stifle innovation

- PIX paves way for further digitalisation

Emerging markets have seen significant stablecoin adoption, with Sub-Saharan Africa accounting for about half of the record 5 billion of transactions that were powered by digital tokens in 2024.

In Nigeria, for instance, crypto transactions make up 15% of GDP. The discussion emphasized the potential for web3 to transform finance in emerging markets, with innovations such as multi-currency stablecoins and decentralized financial services.

Yoseph Ayale, who leads LAVA, a venture fund investing in web3 startups, said that an asset class that is very speculative in some parts of the world has the potential to redefine infrastructure elsewhere.

“In my view, there’s a direction where it can be a very interesting, speculative asset class that allows us to cycle capital and innovations and within a very small subset of the world, or it has got the potential to be a generation defining infrastructure that transforms how we approach trust, how we approach financing, how we approach the entire internet economy,” Ayale said.

He cited the potential in Africa with the world’s fastest growing population and the rapid increase in crypto use and adoption even in bear markets.

“Where in the rest of the world, you have transaction volume going down, we have volume going up because it’s very much utility driven.” Fabio Araujo, senior advisor currently coordinating work for the future implementation of DREX – the digital version of the Brazilian Real, highlighted his country’s experience by noting that it is important not to rush into the regulatory framework too early, because it may result in curbing innovation. Still, there also needs to be clarity on the direction of progress in regulation in order to attract investors and entrepreneurs.

The country’s payment system PIX, has enjoyed great success, setting up the scene for further innovation.

“We are trying to figure out a way to create a platform where all the countries in the region can operate, and I think it’s similar to what we do with having multi-currency stable coins,” said Araujo.

Chris Fabian, Co-Founder and Co-Leader at Giga (UNICEF & ITU) talked about the importance of reaching out to governments.

“The trick is, we don’t talk about blockchain. We don’t talk about crypto, which is, I know, antithetical to the world of all of us who like building new stuff and building big tech. But in fact, in the emerging market, in this space, where everybody’s building on this panel, it’s so delicate that if you say something that’s too exciting, it can actually ruin the entire dish that you’re trying to cook,” Fabian said.