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Power Struggle: Africa Becomes the Battleground for US vs China Financial Technology Competition

The African continent is now caught in the midst of a digital influence struggle between the increasingly aggressive United States and China. A recent report from the Irregular Warfare Initiative (IWI) on Wednesday (5/6) reveals that both global powers are competing to establish control through financial infrastructure. China systematically promotes the CIPS system to break dependence on the Dollar, while the US tightens oversight through the ISO 20022 standard. For African countries, both technologies pose similar risks: the loss of sovereignty over their data and national financial systems.
​At the grassroots level, Africans are beginning to turn to Web3 and stablecoins as an escape from inflation and the traditional banking system, which is considered outdated. However, this move is a double-edged sword. On one hand, these technologies offer independence; on the other hand, the blockchain infrastructure provided by foreign entities, whether China’s BSN or Western-dominated Web3 platforms, still carries risks of espionage and data exploitation. Africa is now at risk of becoming merely a testing ground in a financial arms race that does not serve local interests.
​The urgency of digital sovereignty has now become a non-negotiable price for African leaders to avoid permanent dependence on one bloc. Relying on China’s system means submitting to Beijing’s closed protocols, but fully adopting Western standards also means granting international financial institutions full access to dictate the domestic economy. The continent’s biggest challenge is to build resilient independent regulations before they truly lose control of their digital future to global powers.