Elizabeth Rossiello, founder and CEO of BitPesa, has stated that bitcoin-based remittance services have slashed the cost of international payments by 75% and reduced average settlement time from 12 days to approximately 12 hours. Rossiello also addressed the evolving cryptocurrency landscape in Africa and changing perceptions of bitcoin among major international financial institutions and mainstream media.
How BitPesa Transformed African Remittances
Founded in 2013, BitPesa has achieved notable success by offering a cheaper and faster alternative to traditional services like MoneyGram and Western Union in African markets. Rossiello claims that BitPesa has revolutionized the African remittance industry and brought positive change across the continent. “BitPesa was the first company in the world to establish a market between African currencies and digital currencies. We lowered the cost of international payments by 75% and reduced the time to settle between currencies from 12 days to less than 2 hours.”
The company currently operates primarily in Uganda, Nigeria, Kenya, and Tanzania, with headquarters in Luxembourg and a license from the UK's FCA. In addition to serving individuals and small businesses, BitPesa says numerous multinational corporations rely on its services to bypass the inefficient and unreliable payment settlement systems that plague Africa's financial sector.
For Rossiello, Africa presents a unique opportunity for bitcoin and cryptocurrency services. The region's lack of economic development and weak legal infrastructure create a natural demand for the efficiency and transparency that blockchain technology can provide. “There has been such an under-investment in infrastructure for so long in Africa, there was a lot of opportunity to bring efficiency into this market. It’s a big opportunity.”
Growing Bitcoin Remittance Services Across Africa
Rossiello also discussed the changing attitudes towards bitcoin from major international financial organizations and the media. “There was a big misconception repeated in the media about the technology being less safe – despite the fact that the Bank of England, the World Economic Forum and the IMF have all conducted research stating the technology has a low-risk for fraud, certainly much less than cash and traditional transfer methods. The technology is here to stay and the tone has begun to change in the media. Making global payments using the bitcoin blockchain is safer, more efficient, and cheaper.”
African citizens are witnessing an expansion of bitcoin-based remittance options. Vietnamese-founded, Africa-incorporated service Remitano recently extended its operations into Nigeria, Kenya, and Tanzania, directly competing for BitPesa's market share.
While the positive impact of bitcoin remittance providers in Africa is undeniable, most major companies remain based offshore — perpetuating a model where foreign-based money transmitters profit from African labor. This dynamic was widely expected to be disrupted by cryptocurrency remittances during bitcoin's early, idealistic days.
A recent development that bodes well for the African bitcoin remittance industry is the announcement that Zimbabwe-based Bitmari has become the first bitcoin company to partner with an African commercial bank. African companies that establish an early foothold in the bitcoin remittance space could drive much-needed economic dynamism on the continent and potentially recapture capital lost through international money transmission.
Do you think bitcoin-based remittance services are having a positive impact on Africa’s economy? Share your thoughts below!