The trends of cryptocurrency are swiftly overtaking the present financial market all over the world but according to the source, Africa could be the next frontier for crypto.
In a recent report, the major Bitcoin exchanges, Golix embrace Africa by expanding its services across the southern regions of Africa.
The need to reduce inflation urge the increasing ground of cryptocurrency
For a quite long, African citizens are experiencing the high inflation which results in cryptocurrency adoption. However, Rakesh Sharma, a business journalist says – Africa is rarely mentioned among the largest markets for cryptocurrency but it may set to steal a march over other markets. Crypto adoption within the country offers an alternative to disastrous central bank policies. Th major countries that come under Bitcoin economies in Africa would be Malawi, Nigeria, Zambia, Egypt, Ghana, and Zimbabwe. These regions count as approximate as 102% inflation rate within 2016 and 2017, according to the World Bank.
Also, there are no such rules in Africa that regulate cryptocurrency. As per the Nigerian Apex Bank, the country is still fighting to reduce the inflation rate thus it couldn’t control or regulate Bitcoin. The bank quoted – Just the same way no one is going to control or regulate the Internet. We don’t own it.
Lack of banking access Results Interest in Cryptocurrency
It is also interesting to say that the interest in Africa for cryptocurrency arises due to the lack of access to banks. Those who live within such regions without access to banks are more likely to live on crypto terms.
Such freedom open ways for like-minded crypto firms. Back in 2017, there were around 15 crypto startups began in Africa. Luno exchanges from Africa was the first ever bitcoin exchange based in Africa. It has 1.5million customers across the 40 countries worldwide. Remitano, Bitspark, BitPesa, Abra, GeoPay, Bitwala, Niara Exchange, and Kobocoin are some of the Bitcoin exchanges operating in Africa.
The key to Bitcoin surge lies in its anonymous factor. Beside this, it offers borderless transaction with higher security. Emmanuel Tokunbo Darko, vice president of marketing for ICOWatchlist.com says Africa should welcome innovation.
“Truth be told, Africa needs blockchain technology and its resultant cryptocurrencies more than any part of the world,” he concluded
With the increasing interest of Bitcoin and cryptocurrency, the African citizens can change the country’s economy on their own. In this regard, one of the P2P finance platform, the Paxful offers a great opportunity to citizens. However, it doesn’t demand heavy infrastructure than just a smartphone & Internet connection.