Africa is an interesting location to watch Bitcoin materialise. Despite reluctance to accept cryptocurrency from some African governments and central banks, young entrepreneurs are realising the convenience and potential of using Bitcoin. So for example, more and more Africans own bitcoin wallets from trusted brands like Luno and read crypto literature to help them start a better life or new career. So, is there a Bitcoin revolution brewing in Africa?
Why Africa and Bitcoin are The Perfect Match
Africa is a prime location for Bitcoin. Many African countries have struggling economies, meaning their fiat currencies are highly volatile. Bitcoin shares this characteristic and is also one of the most volatile digital currencies on the market. This is a benefit in Africa because it aligns with the status quo. It would be ideal if Bitcoin was less volatile, but this is not going to be a reason to put off African business owners – like it may be in the rest of the world.
Whereas a store in Europe may turn their back on Bitcoin because they can instead play it safe with the Euro or Pound Sterling, an African business may not be so opposed to Bitcoin for this reason and it may even be more stable than the country’s physical currency.
Another reason that Africa is the ideal setting for Bitcoin to flourish is because of the continent’s citizens already embracing mobile payments. Many locals already use services like M-Pesa, which allows Africans to transfer money with their smartphone across African borders. However, their services end at the continent and to send money further afield, Africans must use other companies that charge hefty fees. For those working elsewhere and sending money back home to African families, accepting Bitcoin would be a cost-effective solution.
Where Bitcoin is Already Flourishing
Not all African countries have higher authorities and officials that actively discourage the use of Bitcoin. Some countries are even leading the way on implementing cryptocurrency regulations and taxation rulings. These countries are leading the way for Africa and the ones that other African countries should look up to:
- Mauritius – this African island is becoming known as the central hub of crypto in Africa after devising detailed regulations on its use.
- South Africa – Another leading light is South Africa, which has also implemented regulations and has organisations dedicated to educating its citizens on how to use cryptocurrency safely.
- Ghana – the central bank here has somewhat done a U-turn on cryptocurrencies and may be weakening their resolve. Ghana is also home to many successful Bitcoin startups such as BTCGhana and Bitland.
Africa may be at the back of the intercontinental race to utilise Bitcoin but that is not to say that significant moves are being made. The widespread adoption of cryptocurrency around the world and within international businesses is likely to weaken the reluctance of African authorities to accept its presence. In time this could help it become more of a force within Africa. Whisper it, but there is a Bitcoin revolution in Africa happening right now. Are you part of it?