Nikolas Sargeant
Strike, a product developed by the Chicago-based startup Zap, operates similarly to popular mobile payment apps like Cash App or Venmo but leverages blockchain technology for secure and efficient transactions. Users in these African countries can now seamlessly buy and sell Bitcoin (BTC) and the US dollar stablecoin (USDT). The application also facilitates local fiat currency on-ramps and off-ramps, along with global payments through Bitcoin's Lightning network, ensuring swift and cost-effective transactions for both local transfers and cross-border payments.
The move comes at a crucial time when Bitcoin and stablecoins gain traction in countries with volatile financial systems, such as Argentina and Turkey. Nigeria, Africa's largest market, has experienced a surge in crypto adoption, driven by the need for a hedge against the devaluation of the local currency. Strike's expansion into Africa reflects its recognition of the continent's potential for financial innovation and economic freedom, particularly in addressing challenges posed by high inflation rates and devaluing currencies.
This initiative follows Strike's global expansion plans announced last year, with the aim of providing services in over 65 countries, targeting not only Africa but also Latin America, Asia, and the Caribbean. In November, Strike made its services available globally, enabling users in more than 35 countries to purchase BTC through its app, albeit with a 3.9% fee for non-U.S. customers.
In a related development, Jack Mallers, CEO of Strike, revealed his complete divestment from the U.S. dollar, underlining his strong commitment to Bitcoin. Mallers, known for advocating Bitcoin, criticized U.S. monetary policies and highlighted Bitcoin's potential to counter fiat debasement, citing its fixed supply and decentralized nature. This stance reflects a broader belief in Bitcoin's alignment with values such as personal freedom, equal opportunity, and innovation in the United States.
