Bitcoin activity in Africa has picked up most among young tech-savvy men in urban centers such as Nairobi, but it could be spreading, according to a report in OZY.

The virtual currency, aka digital cash — created by an anonymous hacker in 2009 — has captured the hearts of hard-core geeks.

Why? It enables anonymous, bank-free buying and is a global currency not tied to any central bank. These things make it a great fit for the 326-million Africans who lack access to basic banking services, says OZY.

If you are a member of the large and expanding African diaspora, and you want to send money home, you can’t count on mobile payments. M-Pesa has a partnership with Western Union but the fees are high, which makes bitcoin appealing.

For now, bitcoin users need an Internet connection, but companies such as Kipochi and BitPesa are developing platforms for the standard-feature phones commonly used in Africa rather than building apps for smartphones, which are more rare.

Pelle Braendgaard is CEO of Kipochi, a privately held U.K. company that has begun to use bitcoin for remittances.

Lately, Braendgaard told OZY he has seen an increase in bitcoin exchanges among friends and family members. His goal is to expand access to women managing household expenses. They’re the most common recipients of remittances. “My goal is to make bitcoin usable by ordinary people all over the world, so that even my grandma can use it,” he said.

There are challenges. Bitcoins can’t be cashed out for government-issued currency. Unlike a euro or a dollar, you can’t hold a bitcoin in your hand or use it at the local store.
There’s also the problem of definition: is bitcoin a currency or payment protocol? The distinction is legally crucial and makes regulators wary, says Bill Maurer, director of the
Institute for Money, Technology and Financial Inclusion at the University of California-Irvine.

African countries have been hesitant to let banks do bitcoin transactions due to
concerns about money laundering. China also won’t let banks do bitcoin.

African banks have started warming up to Bitcoin. South Africa’s Standard Bank tested a
bitcoin trading system in February, but hasn’t yet offered the service to customers.

Braendgaard said he is hopeful. He’s talking to banks in African countries — including Kenya, Nigeria and Zimbabwe — about converting bitcoin to local currencies using Kipochi’s service. He expects to launch the first partnership in six months, OZY reports.