Digital Currency: Cryptocurrency has a potential effect on every country. Africa has especially faced a lot of changes with the advent of digital currency. Particularly, the people of Nigeria have experienced changes in their lives after adopting cryptocurrency.
There has been a payment revolution of 60% in Africa which has led to the development of new platforms like the bitcoin mastery. Let’s look at the changes brought about by cryptocurrency in some of the leading African economies.
Kenya did not welcome cryptocurrency at first because Kenyans believed that this digital currency does not have any regulation mechanism. Later, the government decided to conduct research to judge the merits and demerits of the cryptocurrency.
The National Land Commission started using blockchain in land sale because it reduced fraud and fake papers. Furthermore, it improved logistics, transparency and authenticity by using smart contracts in the blockchain. Kenya’s health care system has also adopted blockchain technology.
Nigeria has the third-largest bitcoin holding although the government is not very supportive of the scheme. Just like the situation in Kenya, the Central Bank of Nigeria thinks that cryptocurrency is not regulated and cannot be controlled so they have emphasized that financial institutions should not take part in it.
The Central Bank governor further went on to say that holding cryptocurrency is similar to gambling so it cannot be allowed in the country. Keeping these statements aside, Nigerians take an active part in cryptocurrency trading.
South Africa has taken cryptocurrency most positively in the whole Africa and encouraged its use. They use it as a taxable asset and are looking for ways to implement regulations on it. The banks and authorities are working together to ensure that cryptocurrency becomes regulated.
The major impact of cryptocurrency in Ghana is on land ownership. The bank of Ghana is uncertain about the use of cryptocurrency but when they saw its positive impacts on the land ownership issues, they didn’t impose restrictions on it. Just like in South Africa, the banks and authorities in Ghana are also finding a way of regulating cryptocurrency.
The social and economic growth of countries is greatly being affected by the growth of cryptocurrency. Below are some of the impacts that cryptocurrency has had on the economy of Africa:
Expansion and Growth of Business: African businesses have experienced a major change because their businesses began to expand. Cryptocurrency is recognized all over the world and makes payments easy worldwide so when African businesses adapted it, they connected with major countries. Transactions with America, Europe, and many other countries have become possible with the advent of cryptocurrency. Thus, African businesses expanded.
Encouraging New Investors: Most of the cryptocurrency platforms have low transaction fees which promote their usage. When investors find low transaction fees along with quick and easy transactions, new businesses evolve in Africa.
Unbanked Adults: In Africa, unbanked adults face major issues because they are charged with high-interest rates. Cryptocurrency served as a saviour for them. People who had difficulty in accessing bank services or who were deprived of bank services due to high-interest rate sought refuge in cryptocurrency.
The accounts are opened online and are easily accessible anytime anywhere. The low transaction fees and no hidden charges promoted the use of cryptocurrency amongst users and also gave rise to new investors.
The transparency, authenticity, and ease of use provided by cryptocurrency has helped in promoting its usage all over Africa. No matter how much restrictions governments impose, Africans will continue to use cryptocurrency due to its positive impacts on their lives.