Elizabeth Rossiello, founder and CEO of Bitpesa, asserts that bitcoin-based remittance services have dramatically transformed international payments, cutting costs by 75% and slashing settlement times from an average of 12 days to just 12 hours. Her remarks underscore the disruptive potential of cryptocurrency in cross-border transfers, particularly in emerging markets.
Bitpesa's Revolution in African Remittances
Launched in 2013, Bitpesa quickly established itself as a cheaper, faster alternative to traditional money transfer operators like MoneyGram and Western Union in Africa. Operating primarily in Uganda, Nigeria, Kenya, and Tanzania, the company is headquartered in Luxembourg and licensed by the UK's Financial Conduct Authority (FCA). Rossiello claims Bitpesa was the first firm globally to create a market between African fiat currencies and digital currencies. “We reduced the cost of international payments by 75% and cut the settlement time between currencies from 12 days to less than 2 hours,” she said. Beyond serving individuals and small businesses, many multinational corporations rely on Bitpesa to bypass the inefficiencies and unreliable settlement systems that plague Africa's financial sector.
Africa's Unique Opportunity for Crypto
Rossiello noted that Africa's lack of economic development and weak legal infrastructure make it a fertile ground for bitcoin and cryptocurrency services. “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,” she said. The continent is seeing a proliferation of bitcoin-based remittance offerings: Remitano, a Vietnamese-based but Africa-incorporated service, recently expanded into Nigeria, Kenya, and Tanzania, directly competing for Bitpesa's market share.
Changing Institutional and Media Attitudes
The CEO also discussed a shift in how major international financial institutions and mainstream media view bitcoin. “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,” Rossiello said. “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.”
Competition and Localization in African Bitcoin Remittance
While the positive impact of bitcoin remittance providers in Africa is undeniable, most major companies remain registered offshore, perpetuating the model of foreign-based money transmitters profiting from African labor – a model that cryptocurrency was initially expected to upend. However, a recent milestone offers hope: Zimbabwean remittance firm Bitmari became the first bitcoin company to partner with an African commercial bank. Such homegrown partnerships could drive much-needed economic dynamism on the continent and help recapture capital lost to international money transmission fees, potentially strengthening African economies.