By Tom Jackson
Former FNB chief executive officer (CEO) Michael Jordaan knows a thing or two about financial services, so his angel investments in the fintech space are worth paying attention to. Among other things, he backs South African crypto startups, and says he sees increasing value in the space.
“As in the rest of the world, previously most of the local crypto scene was focused on rapid price appreciation and the resultant speculation. Since the bubble has burst there is now appreciation for the real work of finding use cases for blockchain beyond mere payments,” he told Disrupt Africa.
“The opportunity is to find any business model based on decentralised processing principles that is significantly better than the status quo – which relies on trusted intermediaries but costs a lot. It’s still early days.”
Early says indeed, but Jordaan feels the startups operating in this space right now are more serious than their predecessors.
“The cost of setting up a properly functioning trading platform can be significant and my sense is that the fly-by-night operators have largely withdrawn,” he said.