The ongoing COVID-19 pandemic has brought down the world’s economy on its knees. Some have been very badly affected where-as some sought different options to bring back the country’s financials to life. One such country which very well implemented their COVID-19 fight plan. And now on the path of recovering their economy is South Africa.
Is Bitcoin the Ray of Hope!!!
The potential of the blockchain and cryptocurrency to curb the ongoing financial crisis has been acknowledged by many countries in different sectors like Technology, Supply Chain, and Economics. Bitcoin-enabled service could tackle those issues which already exist in Africa.
The South African Reserve bank too had cleared its stand on the cryptocurrencies stating that “Cryptocurrencies were here to stay. And a task force had been set up to develop the regulatory framework for the sector.”
There are also possibilities of the cryptocurrencies becoming a parallel payment system to the traditional fiat payment system. However, the Reserve Bank would control the regulation in order to protect the integrity of the fiat currencies in the country.
Unemployment is slowly magnifying in the country, the South African Government considering the adoption of blockchain technology to overcome the crisis. In addition to this, the blockchain would help to revive the country’s G.D.P by developing various sectors like Information Technology to improve employment and reducing corruption. Hence Bitcoin is adopted by the country at a greater pace.
Also Read: What is Bitcoin?
The Current State of Cryptos in Africa
In a country like Africa where traditional financial infrastructure is unavailable and growing inflation in the country, lead to the need of another fertile ground for the new seeds to germinate. One such hope Africa found were blockchain and cryptocurrencies.
Africa is one of the earliest adopters of cryptocurrencies and a very important market compared to the rest of the world. The reason is quite simple, the young generation is more leaned towards the cryptocurrencies which suggest a secure future of cryptos in the country.
However, the country’s crypto space still faces some hurdles to intensify the blockchain and crypto adaption. Some of them include inadequate internet coverage, competition from mobile services and hostility from national governments. Other than these, Africa lags in mining operations, supporting merchants, ATM’s and exchanges.
Other Developments in Africa
Electroneum Expands in Africa
One of the crypto payments networks, Electroneum deepens its roots in the African country with its new features. The blockchain-based digital payment project launched it’s in App electricity top-up feature. Where-in the users can top-up their electricity meters from the App by paying ETC tokens.
RevoluGROUP Canada partners with Flutterwave
RevoluGROUP Canada, a multi-asset, multi-division publicly traded Canadian company partnered with an African payment platform, Flutterwave to pay the way for the RevoluPAY e-Wallet remittances to be collected by African banks. Both the parties have agreed for the commissions to be paid to the Flutterwave on the transactions carried out on RevoluPAY into African territories.