Every few days I see postings about new places accepting bitcoin for daily payments. It is basically always a small (usually not very digital looking) store in Africa. I really like that this is happening and I am wondering what are the experiences of users from Africa.
One country in Africa (The Central African Republic) has made bitcoin a legal tender and many others accept bitcoin as means of payment. Out of the fifty-four countries of Africa, bitcoin is banned in just six countries ( Ethiopia, Tanzania, Lesotho, Sierra Leone, Cameroon, and Congo DRC).
One of the major attractions to bitcoin in Africa is the constant devaluation and loss of value of local currencies.
The high rate of the unbanked population is also driving the increase in bitcoin adoption.
Another factor is the high transaction fees from commercial banks and their unreliable services.
Is it really common to use bitcoin in the everyday payment?
Using bitcoin as a form of payment is unpopular because most people that buy bitcoin usually use it as a hedge against inflation and for investment purposes. Many people are yet to enjoy the benefit of bitcoin as a currency. But with the increase of bitcoin awareness, many businesses have started accepting bitcoin.
What types of wallets do people usually use to complete these transactions?
Sadly most people still keep their funds in centralized exchanges. This is because these exchange firms engage in expensive and attractive advertisements. Some of them at unaware of the dangers of keeping their coins in these exchanges. But the current fall of these exchanges in recent times has improved and spread more awareness about the need to keep their funds in decentralized wallets.
What are the advantages/disadvantages of bitcoin payments in Africa?
Some of the advantages include cheap transaction fees, reliable transaction process, access to quality and unrestricted banking facilities, hedge against inflation and currency devaluation, profitable investment opportunities, and promotion of privacy.
Some pitfall of bitcoin in Africa is that most Africans are not enlightened enough to understand the coin. Unstable power supply and internet connection have made bitcoin inaccessible to some people. Most Africans might not have enough money to buy bitcoin because of harsh economic conditions.