When we think of continents that have embraced cryptocurrency, we often picture Asia, North America or Europe. Truthfully speaking, no continent has been quite as welcoming to the rise of cryptocurrencies as much Africa. For decades the world’s second largest continent has been subjected to uncontrollable inflations brought upon them by their central banks. Banks don’t particularly sit well with the African people. Take this view and mash it with the current generations love for tech and you’ll easily see why the central banks are slowly being replaced by cryptocurrencies.
South Africa is the perfect example of an Africa country embracing cryptocurrency. In the past year over 15 exchanges have opened up. Amidst Bitcoin skyrocketing last year, the peer-to-peer marketplaces saw a huge increase in trading volumes. The global exchange wallet known as Luno showed that in November of 2017 there were over 2000 Bitcoin transactions in Africa and 37% of those came directly out of South Africa.
There are a few factors that come into play when it comes to traditional banking taking a hike and cryptocurrencies taking their place.
- Horrid Banking Policies – It isn’t exactly breaking news that most African countries suffer from inflation and high rates. Amongst these nations are Sudan, Zimbabwe and Nigeria. That said, something as decentralized as cryptocurrency looks like a great substitute for the government’s currency.
- Low Threat of Government Regulations – When it comes to African governments, the hands off policy is pretty popular. Warnings are fairly common with these governments. Citizens have often been warned about the dangers of cryptocurrencies and how it isn’t wise to invest in them. Most people in Africa aren’t hearing it.
- Computer and Phone Use – Africa’s increasing use of technology is making cryptocurrency very easy for them to grasp. New business are being opened everyday and they are using blockchain technology to make things run.
The three factors above make Africa an ideal place for cryptocurrencies to bloom. It is very slowly pushing out government currencies.