Africa – A Global Crypto Hub: En Route Financial Liberation

  • May 5, 2021
  • Jennifer Moore
Africa – A Global Crypto Hub: En Route Financial Liberation

Firstly, Africa provides conditions, conducive to the thriving of cryptocurrencies. Also, crypto offers solutions to some of the critical financial problems prevalent in Africa. Several countries on the continent are torn by turbulent political conditions and rampant inflation.

Also Read: Indian Trader’s Daily Spend Reach Millions For Crypto Trading

Africa – a continent that evokes sensation on counts of romance, adventure, wanderlust, and perhaps Football. But certainly not in the remotest way does one connect it with something as sophisticated and out-of-bounds as Cryptocurrency.

Well, to update your general knowledge, in just 9 months, over 15 cryptocurrency trading platforms were launched in Africa. This was in 2018 and it doesn’t mark the first time. The trend dawned on the African horizon a long time back and is growing stronger by the day. A visible rise in the number of crypto exchanges happened in 2017, with the spike in Bitcoin price.

This is supported by figures: trading volumes observed in a Kenyan exchange in December 2017 rose to $ 8.1 million. Another enterprise reportedly transacted in 2000 BTC in November 2017. This was from a time when the price fluctuated in the $ 10,000 range. Near about 37% of these transactions were made in South Africa.

Research reveals that of the top 10 countries, Nigeria ranked third place after the US and Russia in 2020, generating more than $400m worth of transactions, in terms of the trading volume.

African Dreams

There may be several reasons why Nigeria could be the next big cryptocurrency market. Some believe that cryptocurrencies and blockchain are key to unlocking Africa’s vast potential. Apparently, the only blockchain may transform the country. This technology, according to young African investors, would contribute to the growth and prosperity of all countries in the continent in the 21st century, giving everyone complete control over their finances.

Why Crypto? Why Africa?

Firstly, Africa provides conditions, conducive to the thrive of cryptocurrencies. Also, crypto offers solutions to some of the critical financial problems prevalent in Africa. Several countries on the continent are torn by turbulent political conditions and rampant inflation. Zimbabwe and South Sudan are currently passing through spiking inflation. Decentralization and cryptocurrencies offer relief amid such situations. They form a lucrative alternative to the economic policies of African central banks. Central banks of the African countries realize the benefits and are already experimenting with cryptocurrencies. The Central Bank of South Africa is piloting the Ethereum blockchain for smart contracts.

A greater push towards cryptocurrency has come from people’s access to smartphones. Global connectivity has opened up the alternatives and opportunities like blockchain and cryptocurrency.

Finally, unlike some countries, the governance of African countries hasn’t come down hard with regulations on cryptocurrency. Although countries like Nigeria have prohibited the trade in cryptocurrency most of the others have issued verbal warnings against the odds of trading in cryptocurrency. Other than that the governments have decidedly kept away from intervening in the trade.

Also Read: The Growing Popularity of Crypto Derivatives Trading

The Prospect of Africa

Africa is home to 226 million people aged between 15 to 24. This currently amounts to the highest number of the youngest population in the world. Within the next 15-24 years the African workforce will comprise the largest in the world. A whole generation of young Africans is pining for new systems of finance, government, and technology. They are seething to create the future with their skills and resources.

According to Google Trends statistics, African countries have consistently led in the number of searches for “cryptocurrency”. Therefore, this is an unmistakable indication of an increasing interest of global enterprises in cryptocurrency projects based in the continent. Sub-Saharan Africa alone, is home to about 350 million adults who have no access to banks, which is 17% of the world’s population.

The decentralized and transparent nature of the technology makes it the apt choice to power digital identity management. Also, transparency, resilience, and accountability in every node of the blockchain is a useful tool for tracking and maintaining the integrity of information. Blockchain technology is capable of providing people who have never used banking services with access to various financial services.

Final Words

Africans, today, are raring to go; invent, and revolutionize capitalizing on their skills and resources. Africa moves towards newfound financial freedom that comes attached to blockchain and cryptocurrency applications, as the world closely monitors its development.

Hence it is now safe to say that Africa has finally found their instrument to fight the plagues that marred the development of the continent for decades.

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