Is the former President Trump creating a crypto empire, or merely a crypto house of cards? His complete, pedal-to-the-metal adoption of Bitcoin – a move so extreme it might make El Salvador’s Bukele blush – is reverberating well beyond American shores. To some, the notion of a “bitcoin mining powerhouse” and a national Bitcoin Reserve sounds great. What do these terms REALLY mean when they’re used in reference to the African continent – the birthplace of fintech innovation and potential? Personally, I think it would be a double-edged sword.

Will US Crush Nascent African Fintech?

Let's be blunt: Trump's America-first approach isn't exactly known for its altruism. His policies are funded by contributions from crypto behemoths including Coinbase and Ripple. Yet, ironically, this support risks overshadowing and undermining the fintech industries taking root across Africa. How? By hoovering up all of the investment, talent, and civic attention. Imagine the world’s largest vacuum cleaner suddenly firing up. It sucks up precious resources that could be used to grow the type of innovative solutions we’re seeing blossoming across Africa.

Think about it. A minimalist regulatory approach modeled on Singapore would invite disaster. It could be too blunt an instrument for fast-growing developing economies leaving room for opportunities for regulatory arbitrage. Legitimate crypto companies may otherwise rush to the U.S. to escape other jurisdictions’ more stringent regulations, putting African nations at a disadvantage. This isn’t all about greenbacks though—it’s about the future of financial inclusion.

Africa has long led the leapfrog across archaic banking systems, adopting mobile money and turning to crypto to empower their unbanked and underserved populations. Or will Trump’s policies put a stop to this progress, misallocating talent and money that we can’t afford to waste? Or will African entrepreneurs be more interested in developing solutions for their own communities? Or will they instead be seduced by the siren song of American Bitcoin mining projects, like one that Eric and Donald Trump Jr.

Is Bitcoin Colonialism 2.0 Brewing?

Is Trump’s Bitcoin dream the new colonialism in the digital age? By putting a focus on Bitcoin mining in the U.S., he’s really laying out a head start in seeing any of that come to fruition with this technology. What if this quest for supremacy means that Africa’s renewable energy potential is heavily tapped? Trump's America might look to Africa for cheap energy to power its Bitcoin mines, potentially hindering the continent's own development goals.

This isn't just hypothetical. As we have documented in our own report, Africa’s extractive sector has routinely benefited foreign governments, corporations, and other foreign powers more than local communities. Are we on the verge of seeing a repeat, this time around with Bitcoin being the commodity in question?

Kwame, a fintech entrepreneur from Nairobi, sums it up perfectly: "We're not against Bitcoin, but we need to ensure it empowers Africans, not exploits them. We need policies that support our own innovations, not just those of American companies." His words are a potent reminder that it’s imperative to bring African voices, including African stakeholders, to the fore.

Africa's Chance To Lead Crypto Innovation

Here's the upside. While Trump’s moves are indeed quite dangerous, they may prove to be just the shock therapy that African nations need. It’s about time they start taking the reins to determine their respective crypto fates for themselves. By developing clear, sensible regulations, investing in education, and fostering local talent, African countries can position themselves as leaders in the global crypto space.

Imagine if that welcoming regulatory environment, with a clear and compelling framework, were able to attract Dubai’s successes as a crypto hub. There’s so much African nations can take from this model, cultivating landscapes that pull in investment while putting their interests first. With greater regulatory clarity, they can focus on developing crypto solutions that address their specific needs. Innovative solutions like these can range from cross-border payments to microfinance and agricultural finance.

Additionally, this might be Africa’s opportunity to become a role model for ethical crypto innovation. With sustainability —social and environmental—with transparency and with financial inclusion at the forefront, African countries can counteract predatory practices and create a new paradigm for the industry. Picture an Africa that’s known for more than its bountiful arable land or minerals. Imagine it instead becoming an international model for innovation and corporate responsibility in the nascent cryptocurrency space.

Trump's Bitcoin gamble is a high-stakes game, and Africa is one of the players, whether it wants to be or not. Our continent can’t afford to be complacent and reactionary. It must be smart in order to claim the benefits of the crypto revolution without being crushed by the weight of American ingenuity. The long-term future of African fintech may well hinge on it.