Africa is the next hotbed of Bitcoin growth

Africa is the next hotbed of Bitcoin growth

 

Africa is the next hotbed of Bitcoin growth, and it's all thanks to a confluence of factors.

Bitcoin remittance market in Africa is a growing industry. The last few years have seen the rise of Bitcoin in the globe. With its low transaction fees, it's a great alternative to other traditional remittance methods like Western Union and Money Gram.

 Key drivers in Bitcoin remittance market in Africa: -

  • Mobile phone penetration and high internet usage in Africa.
  • Volatile national currencies and restrictive monetary policies.
  • High costs of cross border payments.

Till now, Bitcoin has not been accepted by any African countries as a legal tender for payments. But this might change soon as the increasing demand for Bitcoin and Cryptocurrencies is becoming visible across Africa.

Bitcoin has found its way in Ghana, Kenya and Uganda which have seen a booming interest in cryptocurrencies from its citizens. In Nigeria, over 15 million Nigerians are already using the digital currency to send money abroad or pay for goods and services.

Cryptocurrency is also gaining momentum in South Africa. In South Africa, there are many companies that accept Bitcoins as payment for services rendered. Also, there are many small businesses that accept Bitcoin as a mode of payment for goods and services.

The future of mobile money lies in peer-to-peer transactions, which will allow people from emerging markets like Africa to trade directly with each other rather than going through a central intermediary like a bank or a credit card company. BitLipa, for instance, has partnered with Paxful, the largest peer-to-peer marketplace in Africa, to provide faster remittance infrastructure to 60% of the unbanked. Peer-to-peer transactions will also make it possible for Africans to send money straight from their mobile phones by utilizing bitcoin as a payment network.

Touted as the currency of the future, Bitcoins have also been described as a fad or pyramid scheme by many commentators. But while there are some obvious comparisons between these modern-day "gold rush", such as similarities between the 1849 Gold Rush and modern-day California and some people even going so far as labeling it a "Bitcoin Rush" or "Gold 2.0", there are many more differences than similarities between the two events.

The use of Bitcoin as a currency, however, is just one of the many other ways Africa will benefit from this technology. The blockchain technology that powers Bitcoin could also assist with issues affecting African nations such as land ownership disputes and inefficient voting processes. This could change how land title registries and elections are carried out, thus revolutionizing how these institutions work in Africa.

Imagine if the Bitcoin blockchain can be used in African nations to record property titles or votes? This would mean that citizens will know for sure who owns what land and there is no way for anyone else to tamper with it. These records cannot be altered because they are stored on a global ledger that everyone has access to and there is no way for it to be manipulated or tampered with. Also, there wouldn't be any room for corruption or foul play because everything would be recorded transparently on the blockchain.

Combined with other technologies, such as the mobile payment system M-Pesa, it is possible for people in Africa to have greater financial freedom and privacy than anyone else on the planet. Thanks to these technologies, it is also possible for Africans to become more self-sufficient and less dependent on foreign aid than ever before.






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