Usability of cryptocurrency in Africa

[apankay]

Cryptocurrency usage in Africa is on the increase daily as more and more Africans are realizing the value and benefits of cryptocurrency and due to the need of a fast, reliable, accessible and serviceable
means of money transfer and high inflation of fiat currency.

Cryptocurrency adoption in Africa as a continent is very promising because most African countries share a lot of similarities like capital control issues and scarcity of banking infrastructure. https://guardian.ng/technology/tech/evolution-of-cryptocurrency-in-africa/
Cryptocurrency has impacted the African economy in a lot of positive ways such as:

* Growth of business for entrepreneurs as it is easy to transact with American, European, and Asia countries with a low transaction fee
* It has helped in creating employment through mining, blockchain development.
* Cryptocurrency has helped mitigate the effect of scarcity of banking structure. Cryptocurrency transactions can be done anywhere as long as there is an internet connection. Some see cryptocurrencies as vital protection from government repression.

However, the usability of cryptocurrency in Africa is facing a lot of challenges due to government policies because they can't regulate it. In February 2021, the Nigerian government place a ban on cryptocurrency transactions through licensed banks. In July, it launched a scheme for a new government-controlled digital currency – hoping to rival the already established cryptos. Countries like Ghana and South Africa are coming up with policies to regulate cryptocurrency. All these policies stem from the criticism mostly by government  and  authorities as a means of laundering money and financial crime and also ‬for its instability.

Another issue is the volatility of crypto, cryptocurrency is subject to unpredictable changes in the market, For businesses, a 3 percent drop in bitcoin’s value can be big enough to generate a massive loss, and that’s a risk business owners are not willing to take. https://cioafrica.co/the-truth-about-crypto-usability-in-nigeria/

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[coupable]

I think it is necessary to be more specific about the topic. When we say Africa, this includes more than 50 countries with different economies and different financial policies. The situation of crypto in North Africa, for example, where there are Arab countries with emerging economies and witnessing political and social stability to some extent, is fundamentally different from the situation of crypto in West African countries, for example, where these countries suffer from complete dependence on France through the currency of the African franc, which is controlled by France complete control.
Crypto to date represents a good solution for individuals who suffer from unfair financial and banking policies in their countries, but at the same time it will be more like a dilemma for countries that are not ready in terms of the necessary technical development and the appropriate ground for adopting crypto. The example of Central Africa and Venezuela was very unsuccessful.

[Upgrade00]

Cryptocurrency has impacted the African economy in a lot of positive ways such as:

* Growth of business for entrepreneurs as it is easy to transact with American, European, and Asia countries with a low transaction fee
* It has helped in creating employment through mining, blockchain development.
* Cryptocurrency has helped mitigate the effect of scarcity of banking structure. Cryptocurrency transactions can be done anywhere as long as there is an internet connection. Some see cryptocurrencies as vital protection from government repression.

Cryptocurrencies do not benefit the economy of a country. It has the potential to profit citizens, but not nearly enough to impact the overall economy of a particular country, at least not yet.

• Bitcoin does provide means of conducting international transactions easier and faster; with no border restrictions.
• Mining does not really create employment as it's a venture which requires huge capital, and not an industry that employs labour. Blockchain development is not solely built for cryptocurrencies.
• The last point is a valid one and a big quality that attracts people to Bitcoin, this however does not impact a nation's economy.

[hugeblack]

Speaking in this way gives a general and not a diagnostic impression of what is happening in Africa. For example, I will respect the proposal if you give numbers and analyzes that show the increase in trades in some central or decentralized platforms or the emergence of local markets, but just constructive talk that is not supported by numbers.

As for Nigeria’s ban, we have not heard of a person being prosecuted for trading, and therefore I do not think that it will be strict or influential, and Nigeria is a model and not all of Africa.

[Charles-Tim]

Cryptocurrencies do not benefit the economy of a country. It has the potential to profit citizens, but not nearly enough to impact the overall economy of a particular country, at least not yet.

Africa do not just like development but I think crypto organizations are increasing in Africa, how about exchanges that can be developed, they will pay government tax and they will employ many workers. Not only that, anything related to bitcoin and other cryptocurrencies in which people are employed all contribute to economy.

[Duzter]

Cryptocurrencies do not benefit the economy of a country. It has the potential to profit citizens, but not nearly enough to impact the overall economy of a particular country, at least not yet.

Africa do not just like development but I think crypto organizations are increasing in Africa, how about exchanges that can be developed, they will pay government tax and they will employ many workers. Not only that, anything related to bitcoin and other cryptocurrencies in which people are employed all contribute to economy.

Thats a good way, but very few African countries have announced their legal status about cryptocurrency usage. By the time Exchanges to be registered within the country and letting them to operate won't give hands. Even in Nigeria and other African countries, there is big rise in the usage and number of holders. Most of them look like they're using and accepting into business on their own risk.

[Darker45]

I guess it would indeed be more feasible for Bitcoin to serve as a "means of money transfer" and as a store of value due to the fast devaluation of many African currencies than be used as an actual currency for day-to-day transactions. And it's probably good enough for now. Aside from ill-informed regulations, there is indeed the fact that Bitcoin is volatile. It may not necessarily mean massive loss to business owners, but there might indeed be a time when business owners will have to freeze a good portion of their capital so as not to incur losses. And it could affect their operation.

[Zlantann]

Cryptocurrency has impacted the African economy in a lot of positive ways such as:

* Growth of business for entrepreneurs as it is easy to transact with American, European, and Asia countries with a low transaction fee

Due to the scarcity of foreign currencies especially dollars, most businesses in Africa a beginning to use Bitcoin as a means of international trade. This has become important because most governments are limiting the number of dollars they give to business owners and this has also affected their businesses negatively. One of the greatest challenges currently is that China which is one of the biggest trading partners with Africa is hostile to Bitcoin. But some businesses still have ways of invading the ban and making payments with Bitcoin.
 

It has helped in creating employment through mining, blockchain development.

Africa the most youthful continent has the highest rate of unemployment in the world. Although not on a very large scale, Bitcoin has contributed in the area of employment. Many youths have become self-employed by established exchange firms and other jobs Bitcoin offers. And the beauty of these jobs is that they can be done both part-time and full-time from anywhere.

* Cryptocurrency has helped mitigate the effect of scarcity of banking structure. Cryptocurrency transactions can be done anywhere as long as there is an internet connection. Some see cryptocurrencies as vital protection from government repression.

The number of unbanked in Africa is massive but Bitcoin has given them the privilege of engaging in financial transactions. This citizens now can caaryout banking transactions without limitation.

However, the usability of cryptocurrency in Africa is facing a lot of challenges due to government policies because they can't regulate it. In February 2021, the Nigerian government place a ban on cryptocurrency transactions through licensed banks. In July, it launched a scheme for a new government-controlled digital currency – hoping to rival the already established cryptos. Countries like Ghana and South Africa are coming up with policies to regulate cryptocurrency. All these policies stem from the criticism mostly by government  and  authorities as a means of laundering money and financial crime and also ‬for its instability.

Africa's major challenge now is illiteracy. Nigerian government couldn't stop the use of bItcoin because the literate population had to devise options on how to use Bitcoin for their good. But Africa has one of the highest numbers of adult illiterate and out-of-school children. The infrastructural deficit is another major challenge. Most Africans don't have access to basic amenities such as electricity or an internet connection. Other challenges include poverty, cultural problems, colonial ties and other external influence. 

[Fivestar4everMVP]

In July, it launched a scheme for a new government-controlled digital currency – hoping to rival the already established cryptos.

The launch of e-Naira by the central bank of Nigeria was a total waste time and resources on the path of the federal government; I don't even know if any body in the country still remembers there a thing called e-Naira, and deep within me, I am glad this project was not successful.
 

Another issue is the volatility of crypto, cryptocurrency is subject to unpredictable changes in the market, For businesses, a 3 percent drop in bitcoin’s value can be big enough to generate a massive loss, and that’s a risk business owners are not willing to take.

You are absolutely right about this, but I guess this is why we have stable coins which are not prone to high volatility like bitcoin and several other coins and tokens, any business owner who is afraid of Bitcoin's volatility should simply convert to a stable coin while they wait for stability to return to the bitcoin market.

[Dunamisx]

* Growth of business for entrepreneurs as it is easy to transact with American, European, and Asia countries with a low transaction fee
* It has helped in creating employment through mining, blockchain development.
* Cryptocurrency has helped mitigate the effect of scarcity of banking structure. Cryptocurrency transactions can be done anywhere as long as there is an internet connection. Some see cryptocurrencies as vital protection from government repression.

the real state of things here is that the government knows that it's only in using other cryptocurrencies maybe through that they have have control over it except for bitcoin because they still maintain their stand that any system that does not got centralized through them is not recommended by them to go after, that's why you will discover some countries now introducing tokens and other coins aside bitcoin that can incentivise their plan.

Another issue is the volatility of crypto, cryptocurrency is subject to unpredictable changes in the marke

this is one of the reasons why altcoins are discouraged sometimes because they are more sensitive to volatility than anything else, while times like these are the real exposer of those shitty coins among them to go down and never comes up.

[cryptoaddictchie]

Another issue is the volatility of crypto, cryptocurrency is subject to unpredictable changes in the market, For businesses, a 3 percent drop in bitcoin’s value can be big enough to generate a massive loss, and that’s a risk business owners are not willing to take.

Thats why you dont used cryptocurrency only as a product or investment cause it cant be associated well with business. Its okay if you are planning to use crypto as payment gateway for your business to expand the scope of clients and customers but not like you are depending on it. Bitcoin made to be use as an ease foe transactions which can be used on business but not as a business itself like buy btc on us and youll earn later cause its going up. Something like tags of that arent really gonna work as framework for business.

[Kakmakr]

You forgot to mention one of the most important uses of Bitcoin in Africa, namely : Remittance !

A lot of Africans are working abroad in first world countries and they need to send money back to their families. The remittance companies like MoneyGram and Western Union are very expensive and they take most of that money in the form of fees.

So more and more Africans are turning to Bitcoin for international money transfers, because it is a lot cheaper to send money home to their families. (The problem on the receiving side, is the lack of 2-way Bitcoin ATM's to convert it hack to Fiat currencies and also accessibility to Internet access) 

[apankay]

Cryptocurrency has impacted the African economy in a lot of positive ways such as:

* Growth of business for entrepreneurs as it is easy to transact with American, European, and Asia countries with a low transaction fee
* It has helped in creating employment through mining, blockchain development.
* Cryptocurrency has helped mitigate the effect of scarcity of banking structure. Cryptocurrency transactions can be done anywhere as long as there is an internet connection. Some see cryptocurrencies as vital protection from government repression.

Cryptocurrencies do not benefit the economy of a country. It has the potential to profit citizens, but not nearly enough to impact the overall economy of a particular country, at least not yet.

• Bitcoin does provide means of conducting international transactions easier and faster; with no border restrictions.
• Mining does not really create employment as it's a venture which requires huge capital, and not an industry that employs labour. Blockchain development is not solely built for cryptocurrencies.
• The last point is a valid one and a big quality that attracts people to Bitcoin, this however does not impact a nation's economy.

If crypto has the potential to profit citizens, don't you think this will boost consumer spending which is primary driver of GDP of any nation? It will also boost the business spending which will enable local businesses to expand
Retail transactions (<US$10,000) account for almost 30% of Africa’s crypto trade volume This indicates high use in everyday transactions

[Leviathan.007]

I'm not sure what you mean by saying Africa, as far as I know, there are more than 30 countries there, and they may have different situations with cryptocurrencies in one country you can see they legalize cryptocurrencies and accept cryptocurrency payments while in other African countries you can see the government won't allow the cryptocurrency-related transactions as an example I think in Nigeria the government started to take hard of cryptocurrencies and bitcoin while there are many bitcoiners and cryptocurrency investors there.

[bitzizzix]

With bitcoin, Africans can become their own bank where they don't have to queue to withdraw their money, with bitcoin, Africans can make purchases from anywhere in the world that accepts bitcoin.
and also people in Africa who have families abroad can send them money in minutes with very low transaction fees compared to those issued using traditional fiat currencies.
Bitcoin's use in Africa is more need driven than anything else, bitcoin is considered the fastest and cheapest method to send money within the Country, Africa or around the world.

[apankay]

I'm not sure what you mean by saying Africa, as far as I know, there are more than 30 countries there, and they may have different situations with cryptocurrencies in one country you can see they legalize cryptocurrencies and accept cryptocurrency payments while in other African countries you can see the government won't allow the cryptocurrency-related transactions as an example I think in Nigeria the government started to take hard of cryptocurrencies and bitcoin while there are many bitcoiners and cryptocurrency investors there.

I'm aware there are more than fifty countries in Africa and I'm also aware that most African countries have no policy in place when it comes to crypto. A few African countries like South Africa, Tunisia, Nigeria, Sierra Leone, Senegal, and Kenya have some policies in place. So when I say Africa, I mean the majority of African countries

[Gyfts]

Another issue is the volatility of crypto, cryptocurrency is subject to unpredictable changes in the market, For businesses, a 3 percent drop in bitcoin’s value can be big enough to generate a massive loss, and that’s a risk business owners are not willing to take. https://cioafrica.co/the-truth-about-crypto-usability-in-nigeria/

Africa is riddled with poverty, disease, and famine. Doesn't seem to me the issue is inherently with crypto, they just don't have the technological infrastructure to support crypto. I don't mean to sound crude, but isn't entirely dependent on countries with small GDP's to adopt crypto in order to make a significant impact on the crypto sector. And adoption of crypto isn't going to fix the government corruption either. It makes citizens' less dependent on corrupt government, but even with economic independence, government authoritarianism is inescapable.

[virasisog]

Cryptocurrencies do not benefit the economy of a country. It has the potential to profit citizens, but not nearly enough to impact the overall economy of a particular country, at least not yet.

The involvement of citizens in blockchain technology has a huge impact on the economic situation of the country. They might not pay taxes directly because crypto isn't taxable yet but purchasing their necessities for their daily living has an impact. The benefits and earnings that crypto could provide could affect the economy positively. We might not notice it but it actually contributes a big thing.

[so98nn]

I think it is necessary to be more specific about the topic. When we say Africa, this includes more than 50 countries with different economies and different financial policies. The situation of crypto in North Africa, for example, where there are Arab countries with emerging economies and witnessing political and social stability to some extent, is fundamentally different from the situation of crypto in West African countries, for example, where these countries suffer from complete dependence on France through the currency of the African franc, which is controlled by France complete control.
Crypto to date represents a good solution for individuals who suffer from unfair financial and banking policies in their countries, but at the same time it will be more like a dilemma for countries that are not ready in terms of the necessary technical development and the appropriate ground for adopting crypto. The example of Central Africa and Venezuela was very unsuccessful.

Indeed true fact when we speak about Africa, being one of the largest continent it has its own inequalities. Most of the news that I hear about Africa involves adoption of bitcoin gives me confusing impression about it. On one side we see Africa where peeps are starving, waste lands rising and there is no quality water drink; how one could even think about the implementation of bitcoin!! It's just crazy fact and its the south which most developed and being ruled by powerful peeps for sure. However, sad reality; many countries do not get to enjoy the liberty of this development. The development of bitcoin can only happen when there is enough money, infrastructure, high liquidity and most importantly Governments capability to handle it.

[jaberwock]

I'm not sure what you mean by saying Africa, as far as I know, there are more than 30 countries there, and they may have different situations with cryptocurrencies in one country you can see they legalize cryptocurrencies and accept cryptocurrency payments while in other African countries you can see the government won't allow the cryptocurrency-related transactions as an example I think in Nigeria the government started to take hard of cryptocurrencies and bitcoin while there are many bitcoiners and cryptocurrency investors there.

You are right there. The op needs to be more specific with this but upon my research, I found out that there are 54 countries in africa. That's a lot. Didn't knew Africa is that huge but like the op I also mistaken Africa before as a single country. People on Nigeria is going to have a tough time now that the government in their country are now after cryptos.

There is a post here last time which said that binance is going to have a project in one of the African countries. I forgot if which specific country was that but it's a good news for them. Binance one of the largest crypto exchange also see the interest of those people towards crypto so they are helping them.