Bitcoin in South Africa? Yes, especially due to the increasing rise in interest. You will be surprised to see why!
Cryptocurrencies are making significant advances in Africa. Countries such as Uganda, Nigeria, Ghana, Kenya, and South Africa have frequently been among the top 10 countries to search for terms like bitcoin on Google.
Analysts will say that this trend is nothing new or different as everywhere where there is a high inflation rate or a lack of banking infrastructure; people tend to look for alternative solutions. This is no different in Africa. There is a greater chance of promoting cryptocurrencies as the main way to buy and sell things in real life.
Bitcoin In Africa
The popularity of cryptocurrencies in Africa is mostly due to the popularity of Bitcoin. Its decentralized system is very attractive to the people in Africa, as it is seen as an opportunity and not a threat. Cryptocurrencies have the power to reduce corruption, promote development, and even good governance. This makes it a precious asset for the people in Africa. It is not unusual to see reports from all around the world, saying that Africa is one of the most promising continents when it comes to the chance to adopt cryptocurrencies. Recently, Twitter’s CEO, Jack Dorsey, declared his interest in the African continent’s cryptocurrencies market.
One of the main forces that keep this phenomenon going has been Nigeria. Their peer to peer volume per week has doubled, growing from $5 million to $10 million. This shows how quickly the market is growing and what potential it hides. But while Nigeria has long dominated these reports, new information indicates that South Africa now has the highest percent of cryptocurrency ownership, a whopping 13%.
This Cryptocurrency craze is just giving us a glimpse of what the future can hold for Africa. These kinds of numbers attract investors over to Africa, slowly helping them grow and evolve.
However, not everything is all moonlight and roses.
Africa’s Crypto Challenge
Even though Africa is very open to cryptocurrencies, there are still issues and problems that the continent is facing.
Africa is still struggling with Internet penetration (Africa has the fastest internet, but a minimal amount of internet users, due to poverty in most of the continent). Africa is currently seeing 39% of its population use the internet on average, while the global average was 59%. And even though some countries like Kenya and Libya have 87% and 74% internet penetration, Egypt, on the other hand, is 48%.
Another issue is that out of 10267 bitcoin nods worldwide, only 20 of them you can find in Africa. The number gets even smaller when you look at the nods of some other cryptocurrency.
These issues stem from not having a proper regulation of Bitcoin trading in South Africa, nor is it established on the continent. As long as there is no government’s concrete position towards cryptocurrencies, its growth will always be stifled. African regulators are yet to state their position on cryptocurrencies. Because of it, there is still a ban on Bitcoin and other cryptocurrencies all over Africa.
Post regulation Africa
Developing a crypto Industry is impossible without the cooperation of the government.
That is why these regulations are fundamental. However, the regulators have already been attracted by this immense popularity of Cryptocurrencies in Africa. The regulators propose strict licensing and monitoring requirements, without recognizing crypto assets as legal tender.
With all these positives and negatives following Cryptocurrency in Africa, it seems like it is going in the right direction. Infrastructure is not good in Africa, but with the new influx of investors, this can be just a minor hiccup. And even though the lack of regulations is slowing down the progress, regulators have started working on it, and it seems that we can expect an even more significant growth than what we have seen so far.