Cryptocurrency Adoption - The Case for Africa

[Nicklaus97 29]

(Image credit: Hackernoon.com)

What is the current status of cryptocurrency in Africa? Is Africa on the verge of embracing cryptocurrency? Could Africa hold the key to the future of widespread cryptocurrency Adoption?

Africa is the second-fastest-growing region both economically and demographically in the world having a population of over 1.2 billion and a GDP exceeding $2.4 trillion. Many experts argue that inflation and poverty push people towards cryptocurrency. Africans without access to banks and who live in politically unstable countries could be attracted to cryptocurrency. “Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets,” says Rakesh Sharma, a business and technology journalist.

Mr. Sharma says that citizens of countries battling high inflation are likely to opt for cryptocurrency, because “with their paradigm of decentralization, cryptocurrencies offer an alternative to disastrous central bank policies.”
This is seen in countries like Venezuela and Zimbabwe among others which turn to Bitcoin amid economic collapse.

Many African governments find it difficult to adopt and regulate cryptocurrencies due to fear of a collapse of the banking industry and their local fiat currencies. In Zambia, for instance, the Bank of Zambia (BoZ), responsible for creating and implementing monetary policies for the world’s 105th largest economy, explained their stance against the use of cryptocurrencies in contrast to the growing public interests in the field. The central bank admitted that it was receiving a lot of inquiries related to Bitcoin’s legal status in Zambia, and they had to “safeguard the interests of members of the public and to maintain the integrity of the financial system” with its official stance on the digital currency, according to a local news report. An excerpt from the official report says:

“Firstly, Section 30 of the Bank of Zambia Act vests the right to issue notes and coins exclusively in the BoZ. To date, BoZ has not issued any form of cryptocurrency. Cryptocurrencies are not legal tender in the Republic of Zambia; Secondly, BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner’s risk.”

Therefore, one cannot say that cryptocurrencies are banned in Zambia. Interestingly an article in the Zambia Daily Mail of Tuesday, July 3, 2018 was titled 'Bitcoin: Zambia not yet ready'... being a crypto and blockchain tech enthusias, the phrase “not yet ready” which was used in this article makes me hopeful because it implies that there is a possibility that the central bank will one day find a place for cryptocurrency as a useful tool in the financial sector. Cryptocurrencies allow for the transfer of value relatively faster and at low or no cost. Thus, the central bank of Zambia may soon see it fit to issue the country's first cryptocurrency. The constitution of Zambia does not define Bitcoin, which is why it has received a flack from the country’s central bank. There is, however, a possibility of lawmakers taking an active approach to regulating it under a modified provision. BoZ confirmed that it would be actively looking into the cryptocurrencies to come up with a law that "should not constrain but enable innovation.”

In countries like South Africa, Nigeria, Uganda and Tanzania, on the other hand, the adoption of cryptocurrency has gone far ahead. The 2019 Hootsuite Global Digital Yearbook shows that 10.7% of South Africans, 7.8% Nigerians and 7.3% Ghanaians posses cryptocurrency. These countries are above the average of adults with internet access that use cryptocurrency on the continent which is around 5.5%. These are African countries that have really embraced the solution to the problem of remittance which cryptocurrency solves. Many statistical analyses show that South Africa tops the list of cryptocurrency ownership among global internet users.

One cryptocurrency with real utility in these countries is Electroneum (ETN). People in these countries are able to buy airtime top ups right from the Electroneum app using their cloud mining generated ETN. In South Africa, it can be used to top up The Unlimited mobile airtime and data. Many retailers are also beginning to accept ETN for purchases of bread, milk, sugar, and coffee. Many taxis are also now receiving payment in Electroneum. (See Photo Above)

Africa is now establishing it's own cryptocurrencies and exchange platforms. Some examples include the AKOIN ecosystem, NAVCOIN, and the Kesholabs ecosystem with their WAVU token which launches early 2020. Africans in general have the enthusiasm for cryptocurrency and inovation. What Africans now need are devoted cryptocurrency pioneers that can liaise with the African governments and help them develop a deeper understanding of what cryptocurrencies are, what problems they solve and how to tackle challenges which this new technology brings about. Africa has a very huge and untapped potential market for cryptocurrency and if this potential is realized, I believe widespread adoption of cryptocurrency will be inevitable.

 

Referenced material:

https://hackernoon.com/south-africa-tops-the-list-of-cryptocurrency-ownership-among-global-internet-users-bxazr30ti

 

https://www.ccn.com/bitcoin-is-not-a-legal-tender-in-zambia-says-central-bank/

 

https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency

[AL SHAIMON 1293]

Africa is a good Country but i do not think Africa will adopt bitcoin soon. Because bitcoin is a digital technology which is controlled by block chain technology but Africa do not support it. So they can not adopt bitcoin.     

[Benjamin 84]

10 minutes ago, Migo said:

I think africa will not adopt bitcoin in the next few years, because the content is not ready for this kind of technology, I wich they will but o don't think that is going to happen 

I agree with this, there some places that they are using technology such as gadgets etc. But most of the poeple there are not familiarized about technology so they will not adopt the bitcoin to help them in finanial aspects.

[Nicklaus97 29]

27 minutes ago, Migo said:

I think africa will not adopt bitcoin in the next few years, because the content is not ready for this kind of technology, I wich they will but o don't think that is going to happen 

For Bitcoin, yes, I agree with you...this is because there are far better altcoins that actually solve more practical problems which bitcoin does not e.g Electroneum...South Africa has already adopted Electroneum in its daily transactions. Many African countries are using digital money via MTN mobile money, mPesa, Skrill, PayPal, Airtel money, and so on for remittance, utility bill payments, and for small business owners to pay their employees...this to me shows that cryptocurrency line ETN and stellar are more likely to offer a smooth transition

12 minutes ago, Benjamin said:

I agree with this, there some places that they are using technology such as gadgets etc. But most of the poeple there are not familiarized about technology so they will not adopt the bitcoin to help them in finanial aspects.

Africa is a continent which has 54 countries and in all those countries, all cities and towns have have smartphones, tablets, and other computing devices... only rural areas (which unfortunately are the most advertised) lack access to electricity and such facilities...but if you look at the photo in the post, it shows a rural (underdeveloped) area in South Africa with a shop that accepts payment in Electroneum (ETN). Personally I think that speaks volumes. Personally, I think the only way African countries will fully adopt Cryptocurrency is if they start viewing it as a utility and not as a replacement for fiat currencies.

Edited December 15, 2019 by Nicklaus97

[sdsonjoy50 886]

The population in Africa is more than 1.2 billion and GDP exceeds $ 2.4 trillion.  In my opinion, there are great opportunities for crypto currency expansion, and if people in Africa invest a small amount, the average calculation tax will increase the volume and market cap of the crypto currency, which I think will be positive for our crypto currency.

[bentayebsalah 2280]

I think that Africa does not have a problem in dealing with cryptocurrencies and bitcoin, but it still does not have the ability to do so yet and I believe that this may be possible in the future and succeed in adopting cryptocurrencies

[Shaza Ahmad 1682]

The article was very long, I did not read it fully, but I am surprised by the attempt to facilitate payments in Africa using electronium, this cryptocurrency has a good project and today launched a site to provide services for self-employment anytask.com 

[Akbor 1042]

1 hour ago, laska smrtici said:

There are some African countries that have their own cryptocurrency like Tunisia, and there are also some countries that deal with bitcoin, and that is why Africa can adopt cryptocurrencies.

I think if any country may be African adopt btc then their economy will grow high very soon. many countries are already trying to adopt btc now.

[suzuya 945]

If Africa starts adopting cryptocurrency, their movement might help it's people and also their economy. I think the use of cryptocurrency in that country is already available and some people can do jobs and use it in some transactions.

[Soaib khan 1035]

Maybe in future Africa adopt crypto currency africa good country for crypto currency some countries already adopted crypto I hope all countries adopt crypto.

[Popedee 377]

Africans are beginning to adopt crypto as a way of generating income in a failed economies. With government stance on crypto in Nigeria, more people are beginning to trade crypto and generating income. Statistics from Paxful Dex shows Nigerians are the most active traders on this platform

[Amirul Islam 382]

On 12/14/2019 at 10:14 PM, Nicklaus97 said:

(Image credit: Hackernoon.com)

What is the current status of cryptocurrency in Africa? Is Africa on the verge of embracing cryptocurrency? Could Africa hold the key to the future of widespread cryptocurrency Adoption?

Africa is the second-fastest-growing region both economically and demographically in the world having a population of over 1.2 billion and a GDP exceeding $2.4 trillion. Many experts argue that inflation and poverty push people towards cryptocurrency. Africans without access to banks and who live in politically unstable countries could be attracted to cryptocurrency. “Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets,” says Rakesh Sharma, a business and technology journalist.

Mr. Sharma says that citizens of countries battling high inflation are likely to opt for cryptocurrency, because “with their paradigm of decentralization, cryptocurrencies offer an alternative to disastrous central bank policies.”
This is seen in countries like Venezuela and Zimbabwe among others which turn to Bitcoin amid economic collapse.

Many African governments find it difficult to adopt and regulate cryptocurrencies due to fear of a collapse of the banking industry and their local fiat currencies. In Zambia, for instance, the Bank of Zambia (BoZ), responsible for creating and implementing monetary policies for the world’s 105th largest economy, explained their stance against the use of cryptocurrencies in contrast to the growing public interests in the field. The central bank admitted that it was receiving a lot of inquiries related to Bitcoin’s legal status in Zambia, and they had to “safeguard the interests of members of the public and to maintain the integrity of the financial system” with its official stance on the digital currency, according to a local news report. An excerpt from the official report says:

“Firstly, Section 30 of the Bank of Zambia Act vests the right to issue notes and coins exclusively in the BoZ. To date, BoZ has not issued any form of cryptocurrency. Cryptocurrencies are not legal tender in the Republic of Zambia; Secondly, BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner’s risk.”

Therefore, one cannot say that cryptocurrencies are banned in Zambia. Interestingly an article in the Zambia Daily Mail of Tuesday, July 3, 2018 was titled 'Bitcoin: Zambia not yet ready'... being a crypto and blockchain tech enthusias, the phrase “not yet ready” which was used in this article makes me hopeful because it implies that there is a possibility that the central bank will one day find a place for cryptocurrency as a useful tool in the financial sector. Cryptocurrencies allow for the transfer of value relatively faster and at low or no cost. Thus, the central bank of Zambia may soon see it fit to issue the country's first cryptocurrency. The constitution of Zambia does not define Bitcoin, which is why it has received a flack from the country’s central bank. There is, however, a possibility of lawmakers taking an active approach to regulating it under a modified provision. BoZ confirmed that it would be actively looking into the cryptocurrencies to come up with a law that "should not constrain but enable innovation.”

In countries like South Africa, Nigeria, Uganda and Tanzania, on the other hand, the adoption of cryptocurrency has gone far ahead. The 2019 Hootsuite Global Digital Yearbook shows that 10.7% of South Africans, 7.8% Nigerians and 7.3% Ghanaians posses cryptocurrency. These countries are above the average of adults with internet access that use cryptocurrency on the continent which is around 5.5%. These are African countries that have really embraced the solution to the problem of remittance which cryptocurrency solves. Many statistical analyses show that South Africa tops the list of cryptocurrency ownership among global internet users.

One cryptocurrency with real utility in these countries is Electroneum (ETN). People in these countries are able to buy airtime top ups right from the Electroneum app using their cloud mining generated ETN. In South Africa, it can be used to top up The Unlimited mobile airtime and data. Many retailers are also beginning to accept ETN for purchases of bread, milk, sugar, and coffee. Many taxis are also now receiving payment in Electroneum. (See Photo Above)

Africa is now establishing it's own cryptocurrencies and exchange platforms. Some examples include the AKOIN ecosystem, NAVCOIN, and the Kesholabs ecosystem with their WAVU token which launches early 2020. Africans in general have the enthusiasm for cryptocurrency and inovation. What Africans now need are devoted cryptocurrency pioneers that can liaise with the African governments and help them develop a deeper understanding of what cryptocurrencies are, what problems they solve and how to tackle challenges which this new technology brings about. Africa has a very huge and untapped potential market for cryptocurrency and if this potential is realized, I believe widespread adoption of cryptocurrency will be inevitable.

 

Referenced material:

https://hackernoon.com/south-africa-tops-the-list-of-cryptocurrency-ownership-among-global-internet-users-bxazr30ti

 

https://www.ccn.com/bitcoin-is-not-a-legal-tender-in-zambia-says-central-bank/

 

https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency

Recently I read a topic about Africa crypto. And I surprised that in Africa crypto is regulated and there crypto use maximum time. Our country should follow the country.

[Captain Karim 0]

A very long article, not all the details of it can be read and carefully considered, so I read it quickly. My view is that Africa is a developing continent and needs blockchain technology more than any other continent because it needs transparency.

[magd 5231]

Currently, cryptocurrencies have begun to operate in some African countries, such as Nigeria, Egypt, etc. This means a significant and significant development of cryptocurrencies, but will there be a market for exchange or brokers?

[Fedor00 74]

As far as I know africa is a pretty poor country and they are also pretty back behind when talking about technology so I don't think they will have succes with cryptocurrencies, at least not now 

[Beromnia 733]

Welcome with me
The problem in Africa lies in the fatty of policymakers who are far from the reality of technology and its uses, despite this, there is a large and significant number of crypto users, which heralds a promising future for the cryptocurrency in Africa.
South Africa is a pioneer in cryptography and is a developed and number-one country in Africa

[tienda 8776]

Is a good idea and ideal for Africans countries the adoption of cryptocurrency, but need to be managed by the expert to success! because if will be managed by the government we know that the majority Africans government country use the corruption., so at the end the people benefit!

[Raqeebzy 6456]

It is hightime countries around the world started recognizing bitcoin as an economy saver. Cryptocurrency might be doing more good than bad to the world economy. Cryptocurrency allows countries with failing economy to able to trade with outside world 

[Whited35 15285]

I wonder to see the Growing possibilities in Africa to trade the cryptocurrency. African countries are making the expert's point of view wrong by incredibly progressing in the crypto world I have seen some really projects which are coming from Africa. 

[George10 9932]

That was great news about cryptocurrency in our African land it will be a nice move if all African countries can realize the important of blockchain technology and fully regulates crypto but we are still far to recognize this innovation I gues.

[bliznec 22268]

Africa today has all the potentials that are at the stage of development of cryptocurrency and blockchain. Africa, there is a lot of potential development on the blockchain. 

[BTC Future 3946]

On 12/14/2019 at 6:14 PM, Nicklaus97 said:

(Image credit: Hackernoon.com)

This image is photoshopped. Seriously I don't think that ETN (Electroneum) wanted to make this look real, so I take it as a joke. Anyway electroneum was just a marketing hype since 2017 and from what I've been reading about them all this time, it seems that they will never change and try to grow into a useful product.

They are just about hype trying to pump the price, and dump on traders and naive investors.

[Abiaan 1209]

i can see still millions of people in the African countries is out of reach from internet , so it might take a long to get into cryptoworld market for african countries but still many people are into it and getting aware about it, african countries need bitcoin knowledge more than anyother

[Babubu609 0]

On 3/20/2020 at 7:40 PM, AktarLota said:

Is the crypto of south africa gonna be adopted make somebody's day aid if anyone knows anything related to this please help
 

Is going you be accepted with time but not now as crypto is still advancing and spreading in the world

[AL SHAIMON 1293]

On 3/20/2020 at 2:23 AM, Blessing36 said:

Africa is not a country its a continent. Just from the post he mentioned about many people minimizing Africa which is true as you've just done and I think that some countries in Africa will be able to adopt this currency. Countries like Nigeria, Cameroon, Ghana have already started making good use of this technology and ATM's of crypto are already available in some areas

Sorry for my mistake. I know that Africa is a continent. Yeah i know that Nigeria has already use crypto ATM. I think they are very advance on the use of crypto technology.