Africa is a sleeping giant of cryptocurrency due to its ready-made culture to accept cryptocurrency and benefit from it. Unfortunately, higher authorities may stand in the way.
Africa has notably not kept up with the likes of Europe when it comes to accepting crypto’s position in society, the benefits it can bring to citizens and in regulating its usage. This can be seen as a shame because Africa may be one of the most suited places to welcome crypto and the benefits in the continent may be greater than anywhere else. The reasons why crypto is suited to Africa so well can be broken down into:
- Crypto has the power to help unbanked communities, which includes a significant number of people living in Sub-Saharan Africa.
- Africa already adopts a culture using mobile apps to send and receive money.
- Those sending money to families back in Africa are usually subject to high fees and delays. Peer-to-peer payments with cryptocurrency can help avoid these issues and inconveniences.
- Internet accessibility in Africa has grown significantly over the last decades.
All of these things make Africa an ideal location for crypto investors to apply their interests. Yet, some hurdles remain in the way from governments and regulators.
Africa Already Has a Foot in the Door
Africa has lagged behind more developed areas of the world in regard to economic advancement. The same could be said about cryptocurrency adoption in the continent with more banks and governments opposing it or failing to regulate it. However, this is a blanket idea and not compatible with some African countries, such as Mauritius who were one of the first countries to warmly embrace crypto and regulate it.
Another example of the cryptosphere’s achievements in Africa can be seen in Luno. This South-African based crypto exchange offering products like a secure Bitcoin wallet – and has a massive following in Africa with aims to reach one-billion users by 2025. By the way, this company also has global ambitions and already has a strong presence in several countries.
To say that paths are not being created for crypto to flourish in Africa would be fake news. And that is one of many reasons why the industry is thriving and becoming an appealing region for investors.
Why It the Crypto Boom Will Continue in Africa
So, the door is ajar for crypto to have a place in Africa and benefit everyone. One way that it may become even more appealing to the general public is through (hyper)inflation. When the price of goods increases, many African seek shelter from the storm in borderless cryptocurrency and can protect their wealth by taking it virtually out of Africa.
Another reason it may continue to become a frontier of the industry is because of the number of blockchain companies calling Africa home. More fintech outfits are being developed and some of them are using blockchains to go around the unfinished financial systems of Africa, hopping straight into the more appealing decentralised world.
The Overall Picture
It is true that some governments and central banks of Africa actively oppose its usage. In Kenya for example, banks are not allowed to give accounts to Kenyans known to be using cryptocurrency. Despite this Kenyans are showing resilience and still opting to use Bitcoin and alike. Adding to this with African countries that are embracing cryptos – such as South Africa and Mauritius – the future for the continent and crypto may be better than e imagine. Many crypto investors are already tuning into this fact and starting to look to Africa for cryptocurrency investment opportunities.