In a lively interview, Abubakar Nur Khalil, CEO of Recursive Capital, explores Bitcoin’s transformative role in Africa, highlighting its economic empowerment potential. His Bitcoin journey began in 2017, leading him to create Recursive Capital, focused on Africa’s Bitcoin ecosystem.
The State of Nigeria’s Currency and Bitcoin’s Convenience
The conversation opens with a discussion on Nigeria’s currency, the Naira, which has devalued to the point where it’s almost on par with Satoshis in value. This has made Bitcoin a convenient alternative for transactions, offering stability in a volatile economic environment.
Abubakar Nur Khalil’s Bitcoin Journey and Recursive Capital
Abubakar Nur Khalil shares his personal journey with Bitcoin. Starting in 2017, he was drawn to Bitcoin’s technology and potential, leading him to learn coding and contribute to Bitcoin Core. His involvement in the Bitcoin space has since expanded to include launching Recursive Capital, a Bitcoin wallet and contributing to various Bitcoin Core and other Bitcoin-related initiatives in Africa.
The Duality of Bitcoin in Nigeria: Adoption and Criminality
The interview touches on the high adoption rate of Bitcoin in Nigeria, which is juxtaposed with its criminal use, particularly in scams. Despite this, Abubakar emphasizes that the scams are not indicative of Bitcoin’s future trajectory but rather a symptom of a lack of understanding, proper regulation, and will be drowned out over time by legitimate use-cases. He highlights the importance of educating both the public and government officials about the differences between Bitcoin and other cryptocurrencies.
Government Policies and Bitcoin’s Resilience
The discussion shifts to government policies and their impact on Bitcoin. Abubakar points out that attempts to regulate or ban Bitcoin have been unsuccessful and have, in fact, increased awareness and adoption. He argues that governments should embrace Bitcoin to remain economically competitive and solve issues like energy sovereignty, inflation and currency devaluation.
The Unique Perspective from Nigeria
Abubakar provides insights into the Nigerian perspective on Bitcoin, highlighting the country’s large peer-to-peer market and the translation of commerce into Bitcoin. He also discusses the differences between Nigeria and other African countries in terms of Bitcoin adoption and use cases.
Recursive Capital’s Investment Thesis in Africa
The conversation delves into Recursive Capital’s investment strategy, focusing on the efficient allocation of capital in Africa. Abubakar believes that African developers are leading the way in Bitcoin innovation and that the continent will see the purest form of Bitcoin companies emerge. He cites examples of companies they have invested in, such as Bitnob and Fedi, which are driving innovation and adoption on the continent.
Challenges and Opportunities for Bitcoin in Africa
The interview concludes with a discussion on the challenges faced by Bitcoin in Africa, including the potential for increased scams due to the ease of money transfer. However, Abubakar remains optimistic, believing that economic opportunities created by Bitcoin will outweigh the risks of criminal activity. He sees a future where Africa not only consumes but also leads in the development of Bitcoin and related technologies.
In sum, even with Bitcoin’s high adoption rates, the latter is tempered by its use in scams, stressing the need for education and regulation. Despite government attempts to ban Bitcoin, its resilience and growing awareness emphasize its potential.
