The rise of cryptocurrency in Africa
A look at how Africa is embracing digital currencies
When cryptocurrency first hit the scene, it was seen a thing as very much for the Western world and Asia, with both areas dominating proceedings for a while. However, in recent times, Africa has started out on a journey with cryptocurrency and they’re quickly establishing themselves as a powerhouse in the sector. A 2018 report by Citibank found Nigeria, Kenya and South Africa to be global players in the market, with potential for further growth evident.
Now, some people may be interested to find out why cryptocurrencies have become so popular in Africa, and the truth is, there are multiple reasons. People living in Africa have turned to technology, and therefore cryptos, as the banking options available to the majority or residents across the continent are limited. There’s also a lack of employment in many countries within Africa, while nation currencies are unstable at times. However, with near enough everyone owning a smartphone and therefore having access to the internet, they can take banking into their own hands through cryptos.
As we mentioned above, unemployment is a big concern in Africa, but this problem has been helped somewhat by the emergence of cryptocurrency, helping it to grow further. This has, for the most part, been through Bitcoin mining, with businesses and mining farms using the process to make profit, which in-turn has led to employment opportunities. Both online and physical entities have been set up, with many of these enterprises going on to be successful. This has been underlined with several companies offering the opportunity to purchase and manage cryptocurrencies, with many like Luno and their ethereum wallet being used on a global scale.
Africa is very much in control of its own destiny where cryptocurrency is concerned, and this is what is enabling it to make its presence felt globally. Bitcoin is still the king when it comes to cryptos, not just in Africa, but around the world, however, there are new cryptos being created within Africa such as Finchcoin and Akon. The former is Ghana’s first official digital currency, while the latter, created by rapper Akon, has been launched in Senegal.
As things stand, you could say that the only way is up when it comes to cryptocurrencies in Africa, with its growth and popularity continuing to skyrocket, but there are still risks to be aware of too. With cryptocurrencies allowing users to remain anonymous, there have long been concerns over illegal and immoral activities taking place through blockchain transactions, and this has led to governments taking a closer look, with there being the potential for cryptos to be regulated at some point.
So, there is undoubtedly potential for Africa’s rise in the crypto scene to slow down somewhat in the not too distant future, but that doesn’t seem to be an issue right now, with things continuing to move in the right direction. The main thing to remember is that the benefits and positives that comes with cryptocurrencies and the use of them far outweigh the negatives, and this will be pivotal moving forward. Therefore, you could say the rise of cryptos in Africa is still ongoing.