A look at one of the regions that have invested the most in cryptocurrencies, even with half of its population unbanked
Africa is the world’s second-largest continent, with a population of around 1,5 billion people and continually rising. Colonialism, civil wars, difficult terrain, and natural barriers have resulted in a lack of infrastructure in certain areas such as a lack of proper access to financial services.
As a result of this continental challenge, more than half of the population is unbanked depending on the black market for a living.
Under these circumstances can we ask if Africa has become a great region to invest in cryptocurrencies? If it’s so, how large is cryptocurrency? This article will give you a better understanding of cryptocurrency from an African standpoint. Many individuals are attempting to figure out how they can grab a piece thanks to celebrity endorsements and Youtubers promoting “How to capitalize on crypto money”. making it available on practically every continent.
Today those in Africa–and Africans living abroad–can participate in the cryptocurrency market thanks to the internet. Of course, that just only a few African countries have a global presence on international trading platforms at the moment like Ghana, Kenya, Zimbabwe, Nigeria, Botswana and South Africa.
All these countries have a lot of regulations and laws in place that make it possible for their residents to trade. People in Africa can use a variety of crypto platforms, such as Coinbase, Hotbit, and Paxful, which are two platforms that can help you get started in the crypto world. We also have other crypto wallets in Nigeria, which can help you buy and sell cryptocurrency. They include Roqqu, which is “mostly utilized and owned by a Nigerian“, and Binance, which are both popular in Nigeria and abroad. But even do corruption it’s overcoming its limits why Africans still believe in investing in crypto?
Corruption in government rules has been a serious issue in African economies. Money is frequently exchanged among the wealthy in Africa, inhibiting the creation of societal money flow. As a result, Inflation will affect individuals who are deprived pushing them to find new paths. Like in south Africa where it has been shown that digital money comes back to the local market.
According to the World Bank, South Sudan’s inflation rate was 102 percent between September 2016 and September 2017. Egypt, Ghana, Malawi, Mozambique, Nigeria, Zambia, and Zimbabwe are among the countries experiencing double-digit inflation rates. It’s no surprise that some of these countries are among Africa’s most important Bitcoin economies. According to gobitcoin.io, a website dedicated to Bitcoin news in Africa, the main Bitcoin countries are Botswana, Ghana, Kenya, Nigeria, South Africa, and Zimbabwe. According to the BBC, Bitcoin is gaining traction in Uganda. Some Zimbabweans switched to Bitcoin as the country’s inflation surged in 2015, causing authorities to produce $100 trillion notes (each worth only $40).
Emmanuel Tokunbo Darko, vice president of marketing for ICOWatchlist.com, a website that hosts cryptocurrency tokens, said Zimbabweans and people of other African countries interact in Bitcoin “as opposed to their local currencies, which are afflicted by hyperinflation”.
According to the GSM Association, which represents the interests of mobile operators worldwide, Africa will have 725 million mobile phone subscribers by 2020. According to Mr. Sharma, this means that more Africans will be able to participate in the cryptocurrency ecosystem.
“I check my Bitcoin every day [on my phone] and whenever I get an opportunity”. Peace Akware, a Ugandan millennial, told the BBC, “Any minute, any hour, anytime, as frequently as I can”.
The lack of regulation of cryptocurrencies by African countries may be a factor driving its rise on the continent; yet, there is no guarantee that governments will not change their attitudes.
Governments may be powerless to control cryptocurrency, rather than simply not wanting to, according to the Nigerian Central Bank which is already dealing with the country’s 12 percent inflation rate, claimed that it will be unable to manage or regulate Bitcoin, “much as no one will be able to control or govern the internet It isn’t ours”.
Cryptocurrency survival in Africa is proving to be a difficult undertaking due to several restrictions imposed by the economic powers of most African countries, making cryptocurrency survival difficult for its citizens. A ban on cryptocurrency and other digital currencies was enacted to protect the interests of most governmental institutions after it was discovered that a large portion of the population, particularly the youth, invest in cryptocurrency. As a result, I would say that most youths prefer investing in cryptocurrency over banks, which was not in the interests of the economic elite in most African countries, and it appears that the government had no choice but to impose some restrictions. As a result, most African residents have suffered a major setback. As a result, most African residents who are interested in investing in crypto money to one day lift themselves out of poverty have suffered a significant setback, as most Africans view bitcoin as a long-term investment that will eventually benefit them.
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By Dadzie Ebenezer