Digital Currencies and Africa
While the U.S and many countries in Europe and Asia are benefitting massively from the advent of digital money, cryptocurrency adoption among Africans is still moderate at best, as skepticism and knowledge gaps impede widespread acceptance on the African continent.
Understandably, countries from the developed world having solid monetary base and relatively stable fiscal structures are better suited to implement digital currencies. However, nations with high inflation rates and tight money controls such as those in Africa tend to be more skeptical about adopting this new store of value. In any case, like the advent of web, it will be almost impossible to boycott this new era of financial disruption, or control its spread.
For example the Central Bank of Nigeria, Africa’s most populous nation does not yet recognize the legitimacy of Bitcoin and other cryptocurrencies because the CBN can’t control or regulate Blockchain. However, private dealers and enthusiasts in the country are using this new cash to democratize their personal economy.
In Ghana, BTCGhana is giving both urban clients and the underbanked populace more efficient ways to buy and sell using cryptocurrency. Users can now buy goods or pay for services within minutes and transfer monies to customers and family.
In Eastern African countries like Tanzania and Kenya, some entrepreneurs are gradually becoming acquainted with cryptocurrency frameworks to boost cross-border trade, as exemplified by the likes of BitPesa.
South Africa seems to be ahead of its counterparts, as the country has a diverse and thriving hub of crypto investors and traders, with many digital coins fast becoming prevalent.
Potential for Africa
While digital currency has been hailed for its potential to drive growth and profitability, we should also note the financial security it offers. In countries that need tried and tested financial frameworks to advance, digital currencies will offer great value and return on investments, while keeping users’ information safe and secure. Security and protection of assets with complete transparency and confidence provided by the Blockchain structure can help numerous business owners and individuals guard against theft and address other important security concerns.
The Way Forward
It is evident that the African continent stands to benefit immensely form digital currencies due to the fact that Africa needs a viable alternative to the feeble and often unavailable African fiat cash. The only way cryptocurrency can be of considerable benefit in African countries is if it is implemented at governmental level. This will enable the advantages permeate into the financial fabric of the continent to improve outcomes for both government and its citizenry. Avesta is one company on a mission to take on the toughest challenges to widespread acceptance and adoption by tackling the information gap surrounding this decentralized store of value.