Cryptocurrency interest is steadily growing in Africa right now, with many economists claiming it is an innovation that is going to blossom all around the continent. The fact that it is internet-based means geography is not of interest when thinking about spreading and Bitcoin is actually growing.
According to Rakesh Sharma, technology and business journalist:
“Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over markets.”
He went on to say that cryptocurrencies “offer an alternative to disastrous central bank policies,” which is exactly what is seen in most African countries.
The Inflation Problem
The inflation rate is now huge in various countries. Double-digit rates are present in countries like Malawi, Nigeria, Zimbabwe, Zambia, Nigeria and Mozambique. Many of these countries actually embraced Bitcoin technology, with the main countries being Zimbabwe, South Africa, Ghana, Nigeria, Kenya and Botswana.
It was highlighted that many citizens in different African countries now use Bitcoin to exchange money when compared with the local currencies because those are hyperinflated.
It is expected that by the year 2020 there will be over 720 million subscribers for mobile phone services in the continent. Africans now have access to the tools that are needed to use the crypto ecosystem.
Cryptoext reports that African governments do not regulate cryptocurrency, which is a huge factor in continent growth. This could change in the future but there is no clear indication of that.
What is particularly interesting is that there is a big possibility that governments would not be able to properly regulate cryptocurrency even if they want this. For instance, Nigeria has a huge inflation rate and Nigerian apex bank did announce that it would be impossible for them to regulate or control Bitcoin.
The Africans that do not have access to banking services and that live in countries that are politically unstable can easily be attracted to the use of cryptocurrency. Procedural problems are eliminated through the use of Bitcoin transactions.
African Cryptocurrency Operations
There is a growing number of businesses that opened doors in Africa. An example of that is Luno Exchange, which was opened in the year 2013 and now has over 1.5 million customers from around the world. Many remittance services pop up in African countries.
Blockchain operations are also gaining popularity. For instance, Plaas Application now enables the farmers to manage stocks with the use of blockchain technology.
We also have an increase in the number of people that mine Bitcoin. This is really useful for those that are faced with poverty. While in rich countries cryptocurrency mining is normally something that is done by big businesses, in poverty-stricken locations even small investments can lead to big profits that can change one’s lifestyle.
With anonymous transactions being a pillar of cryptocurrency use, people naturally move towards options like Bitcoin. We are looking at a big demand and a big promise for helping those that do not have a lot of money. All this goes on at a faster rate in Africa than in other continents.