Why Bitcoin's adoption in Africa may not first be institutional.

[Franctoshi]

I'm talking Africa now because the countries in that region are usually referred to as developing countries, instead of developed countries and we can see why because, they share the same institutional issues like; currency instability inflation pressure and weak banking trust.

They also share high youth population, and just recently starting to experience and increased entrepreneurship culture and the need for  cross border payments.

As a result But in in the African region may not be adopted through institutions, we could see it's adoption through measures like; informal trade, freelancing, remittances.

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

Even in the developed countries or in the western countries today Bitcoin was not first being adopted by so-called institutions, it started with ordinary individual believers of Bitcoin like me and you before the start of major institutional adoption kicks in. So what you are seeing today within the African set, is a normal process taking place, there's a time that institutions, hedge funds, and other asset managers in Africa would have no option other than start to queue in when their customers demand for Bitcoin exposure begin to increase rapidly.

[coupable]

The West adopted bitcoin early by choice, while Africa adopted by necessity.

Where banks fail and currencies collapse, people don’t wait for ETF approval. They use P2P lightning to solve real problems today.
Freelancers, remittances, informal trade. When Bitcoin saves 15% fees and 3 days wait, adoption spreads itself, no marketing needed.

When people use it quietly that  proves it work. Once volume is too big to ignore, banks and regulators join in to tax or regulate it.
Bitcoin doesn’t need approval to work where fiat is broken, and that’s most of Africa right now.

But I think your analysis applies also for the West in early stages, and then the situation repeats itself with Africa and in all other continents as well. To be precise, Bitcoin saves more than 90% in fees on average since the fees are calculated based on the volume of the transaction, not on how big the amount is. This advantage, in addition to borderless limitations, incentivizes people everywhere to practice trading as the easiest way of investing and freelancers to enjoy their payments in full far from the monitoring eye of the authorities.

Reading replies in this thread, I think Bitcoin's adoption has never been first institutional.

[LFC_Bitcoin]

Bitcoin is a huge positive for people in Africa because a lot of people don’t have easy access to banks but they can use Bitcoin with just a phone and internet connection.

It can also help people send and receive money across countries faster and sometimes cheaper than traditional services.

In places where local currencies lose value quickly Bitcoin can give people another way to store their money. We all know that it has risks and price swings but it gives many people more financial options and freedom.

[Hamza2424]

As a result But in in the African region may not be adopted through institutions, we could see it's adoption through measures like; informal trade, freelancing, remittances.

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

A few days ago I read a topic can the world survive without Africa and now we are discussing a country because it is developing and I agree with this fact as it is not completely developed no matter if they are importing and exporting at a large scale and doing business.

I don't know much about the whole region, but so far from what I have read online on BTT from you guys, I also think you guys don't know anything haha.

Anyway, bro if governments won't be accepting BTC and won't form legal frameworks then they are losing money because with legal taxation and frameworks they could earn money, but as far as I know some African countries have taxation and crypto adoption. As I think there are 58 countries in Africa, right? So even if not every single one of them is developing and making money, at least they are making money using the internet and providing their services. I have seen many writers and editors for big brands who are living in Kenya and working for them, making money, and there are hundreds of Nigerians earning money from this single platform as well.

[Orpichukwu]

Is Bitcoin adoption not already popular in African countries already? Why bring up institutional investments? It means here as another means for adoption to spread in Africa; if there are any institutional stands that are to come in, it will be through the demand and popularity of Bitcoin in Africa that will convince asset managers here to introduce Bitcoin ETFs or whatever institutions do to buy and hold for their investors.

[tbct_mt2]

Bitcoin is a huge positive for people in Africa because a lot of people don’t have easy access to banks but they can use Bitcoin with just a phone and internet connection.

It can also help people send and receive money across countries faster and sometimes cheaper than traditional services.

In places where local currencies lose value quickly Bitcoin can give people another way to store their money. We all know that it has risks and price swings but it gives many people more financial options and freedom.

With Bitcoin blockchain and Bitcoin non-custodial wallets, they can broadcast Bitcoin transactions by themselves to Bitcoin mempools, and wait for confirmations from Bitcoin miners. Bitcoin blockchain is decentralized and censorship-resistant so it means people who don't have access to banks can use Bitcoin blockchain easily without restrictions.

There is no middle party like banks to censor bank transfers with Bitcoin transactions, and people who're living in Africa can use this blockchain easily. It's accessible and also feasible in on-chain transaction fees for them and it gives locals there a very practical paradigm shift for their money transfers and business deals.

Global Digital Asset Adoption: Sub-Saharan Africa.

[barbara44]

Africa is as a whole considered like developing one but there are a number of countries in Africa which are yet consider less economically developed countries. The average wages in such nations are way below the line which makes it hard for the citizens to experience foreign life. They are stuck in their nation because they do not have enough money to move out. As an end result, they and their future generations would keep residing in the same country and earning the same wages and living the same life.

To bring the vicious cycle, someone will have to step up and bitcoins are an excellent source to do so. I have meet a lot of freelancers from the African continent who are really talented and are earning way better than what a regular US citizen does. These people fuel the growth in their country as they inspire others. This might be one of the reasons why people would adopt bitcoins before the institutions in the African continent.

[Oluwa-btc]

Adoption is growing faster in Africa than in some developed nations. However, the continent is still playing catch-up to other regions when it comes to the values traded.

The values bitcoin adoption brings is second to know I guess tue mass majority can also tell that, I also believe too many people are utilising it already as a store for wealth, I'm more bothered and concerned about making bitcoin everyday money honestly how soon we can get that working in Africa and what systems are being put in place to achieve that. In between, institutional adoption has never been the first stage. These institutions will only hop in where they can also make profits.

[Audrey Simmons]

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

Slow and steady wins the race. Africa is walking without haste in the adoption of cryptocurrency, I see it as a gradual process, little by little the strict laws on crypto begin to soften. Right here in Nigeria, you are not allowed to reference a transaction as part of a crypto transaction. Let's assume that, at the time of doing P2P transaction, your bank transaction got stuck. When you complain to your bank, you are not allowed to label the transaction as paying for crypto unless it is ceased.

These are minor limitations that would be resolved firstly, adoption continues before government and institutional bodies begin to adopt Bitcoin.

[Sticky Bomb]

We still have many African countries whose governments are not yet involved in cryptocurrency yet Bitcoin adoption among the people continues to grow rapidly. With the high cost of living and persistent inflation in many of these countries uoung people are beginning to think outside the box because for many survival is their main goal.The truth is that adoption has to start at the individual level. People need to become familiar with Bitcoin's use cases in their everyday lives. Once governments and institutions see that people are using and trusting the network, they may begin to explore ways of incorporating it into the system..If we eventually reach a point where a significant portion of the African population trusts and uses Bitcoin without fear, adoption rates could increase dramatically. At that stage, institutions and governments may find it difficult to ignore and could be compelled to follow suit..

I agree with you, but there is still a major problem which would prevent people from using and trusting bitcoin readily and that is poor technological advancement. Most ordinary people who makeup the majority of day to day retailers aren't tech savvy, in fact most still use button phones and others are afraid of anything crypto because of the way scammers utilizes it to exploit people.

The government still has a good role to play by reducing taxation in gadgets like phones and computers, so it's easily acquired by people. When people can get gadgets readily, they're more open to embracing technology and digitalization.

I think proper sensitization programs should also be initiated by NGOs in Africa to educate people on the best way to go about Bitcoin and what differentiates real Bitcoin transactions from scams. When people are constantly put in the know, they would want to engage and that's when proper grassroot adoption would gain traction.

[Agbe]

I'm talking Africa now because the countries in that region are usually referred to as developing countries, instead of developed countries and we can see why because, they share the same institutional issues like; currency instability inflation pressure and weak banking trust.

Institutions play a vital role in the growth of bitcoin because of the demands and supplies but the adoption of bitcoin might not necessarily needs those instructions you mentioned and all is needed is the peer to peer (p2p) and government approval to use it in the country. People are waiting for the government to just approve it as legal tender. With the Centralized Exchanges, people are not interested to use those instructions to trade bitcoin. Using the international exchanges are more better than the government institutions.

Underdevelopment has nothing to do with the adoption of bitcoin. Bitcoin is an investment system and if a developing country bought it as when the price is low and sell it when the price is high, they will have profit to pay some their national debts in bitcoin.

[Ishicryptic]

I've never heard about ETFs or institutional adoption of Bitcoin in any African countries but the development is not only in Africa, I believe that many countries are yet to have institutional investors although Africa, could be at the top because I don't think that the continent has even one. But it doesn't mean that Bitcoin adoption is less in the country, in Nigeria, for example we have many Bitcoin holders so the adoption on individual levels is growing massively because we understand the values of holding Bitcoin which our weak financial systems don't control, our traditional currencies are weak and Bitcoin comes handy as a hedge against inflation. I believe that many institutions who have the interest to invest in Bitcoin would be afraid of our governments who don't have a clear stance on Bitcoin, an institution can be probed for money laundering and so for now they will try to avoid government unnecessary interferences.

[MArsland]

I'm talking Africa now because the countries in that region are usually referred to as developing countries, instead of developed countries and we can see why because, they share the same institutional issues like; currency instability inflation pressure and weak banking trust.

They also share high youth population, and just recently starting to experience and increased entrepreneurship culture and the need for  cross border payments.

As a result But in in the African region may not be adopted through institutions, we could see it's adoption through measures like; informal trade, freelancing, remittances.

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

The current generation will replace the old generation, and the positive point is that when in Africa the generation has been able to adopt bitcoin, it is only a matter of time that bitcoin will come to be widely adopted through government-run institutions and financial institutions.

The young generation in Africa is very enthusiastic about technology, and even if the process of transition from adoption is not yet fully accepted, it is likely that something will be needed to prove that Africa's economy is improving, especially among young people.

[hd49728]

The current generation will replace the old generation, and the positive point is that when in Africa the generation has been able to adopt bitcoin, it is only a matter of time that bitcoin will come to be widely adopted through government-run institutions and financial institutions.

The young generation in Africa is very enthusiastic about technology, and even if the process of transition from adoption is not yet fully accepted, it is likely that something will be needed to prove that Africa's economy is improving, especially among young people.

If you want to understand about adoption for Bitcoin in Africa, you will need to read the history of Bitcoin adoption in general. It's a first thing you need to do, and you will know that Bitcoin firstly was adopted by individuals, Cypherpunks, then other people before it reached to institutions years later. It's the same in Africa when local people were quickly adopted Bitcoin

The next thing you will need to know is living conditions in the Africa. Bitcoin actually changed lives of many people who are either unbanked or underbanked. They basically can not have access to traditional financial system, including bank systems and Bitcoin was there to change their lives with easy and free access.

[Nanga Parbat]

If you want to understand about adoption for Bitcoin in Africa, you will need to read the history of Bitcoin adoption in general. It's a first thing you need to do, and you will know that Bitcoin firstly was adopted by individuals, Cypherpunks, then other people before it reached to institutions years later. It's the same in Africa when local people were quickly adopted Bitcoin

The next thing you will need to know is living conditions in the Africa. Bitcoin actually changed lives of many people who are either unbanked or underbanked. They basically can not have access to traditional financial system, including bank systems and Bitcoin was there to change their lives with easy and free access.

Bitcoin winning race in every region its not all about Africa many other developed countries are also taking time for having this technology because its game changer in every region millions are having positive changes things are moving even taking time due to restrictions and regulations but at the end win could be stand with freedom and Bitcoin because peoples are understanding and adopting technology.

Coming out of traditional system is not easy for many because influence and power working but they can't stop this for long time they have to give way and bring new ways for peoples to enjoy and take their share from this African region is now one off where its spreading quickly and peoples are trying to have enough knowledge and awareness about this coming time will be have positivity for everyone and this could be only due to blessing of Bitcoin.

[OsaiEmma]

As a result But in in the African region may not be adopted through institutions, we could see it's adoption through measures like; informal trade, freelancing, remittances.

From my observation, most African countries (especially the Sub-Saharan) don't usually do this institutional investment thing like they do in the US. Majority of financial institutions in Africa are into Real Estate, and co-operatives (which are mostly private and members only). So I don't think Africa will ever take the institution route when it comes to Bitcoin investment.

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

Well, not exactly right now, more like in the past few years. Now, most African countries have little to no restrictions on the use of Bitcoin. Bitcoin is mostly regulated, so using it doesn't have to be a secret or underground thing anymore.

[Dave1]

I've never heard about ETFs or institutional adoption of Bitcoin in any African countries but the development is not only in Africa, I believe that many countries are yet to have institutional investors although Africa, could be at the top because I don't think that the continent has even one. But it doesn't mean that Bitcoin adoption is less in the country, in Nigeria, for example we have many Bitcoin holders so the adoption on individual levels is growing massively because we understand the values of holding Bitcoin which our weak financial systems don't control, our traditional currencies are weak and Bitcoin comes handy as a hedge against inflation. I believe that many institutions who have the interest to invest in Bitcoin would be afraid of our governments who don't have a clear stance on Bitcoin, an institution can be probed for money laundering and so for now they will try to avoid government unnecessary interferences.

We have to understand as well that institutions getting into the picture is somewhat late already. The first use case for Africa could be those who are unbank. And so with that, majority really put their money on Bitcoin or any other crypto for that matter. If I'm not mistaken, Africa has also one of the biggest in terms of mobile phone, as people can have as many 2 phone at one time.

So with that, they can just have their Bitcoin their phone and use it if possible. So it's a very different case in Africa. And if we have notice, institutions investment on Bitcoin is being the narrative to have it in their balance sheet. It might not be applicable to African government like what Bukele or Trump is doing.

[reagansimms]

The reason behind Bitcoin adoption in Africa did not stem from official bodies or financial institutions, as the banking sector there often fails to meet the basic needs of the population. This situation spontaneously sparked the public's interest in mobilizing collectively on their own, starting from the grassroots level. Bitcoin adoption in Africa is growing from the grassroots level, driven purely by a genuine need for survival amidst economic crises, rather than by speculation or institutional regulation. When formal channels failed to provide stability, the people of Africa collectively turned to decentralized networks that could not be controlled or undermined by the erosion of local institutions. This situation is not unique to Africa, we also find that in several other countries, adoption did not originate with government-run institutions.

[m2017]

I'm talking Africa now because the countries in that region are usually referred to as developing countries, instead of developed countries and we can see why because, they share the same institutional issues like; currency instability inflation pressure and weak banking trust.

Africa is a continent comprising many different countries, each with its own distinct political situation and legal framework. Therefore, one can't speak of implementing bitcoin across the entire continent as a single undertaking, since the process will unfold separately and independently in each country.

They also share high youth population, and just recently starting to experience and increased entrepreneurship culture and the need for  cross border payments.

And this is a great opportunity to use bitcoin.

As a result But in in the African region may not be adopted through institutions, we could see it's adoption through measures like; informal trade, freelancing, remittances.

In any case, I believe adoption will proceed from the bottom up, starting with ordinary users and then moving to institutional clients. That is, after all, how it has played out worldwide.

Right now Bitcoins adoption is taking the underground route, but not for long, as its getting to a stage where it's unavoidable.

Because regulation is lagging behind. As for implementation, I have serious doubts. African governments are more likely to go down the path of CBDC (which they can control) than bitcoin.

[SquirrelJulietGarden]

Africa is a continent comprising many different countries, each with its own distinct political situation and legal framework. Therefore, one can't speak of implementing bitcoin across the entire continent as a single undertaking, since the process will unfold separately and independently in each country.

Because regulation is lagging behind. As for implementation, I have serious doubts. African governments are more likely to go down the path of CBDC (which they can control) than bitcoin.

There are many nations in the Africa continent and most of them are under developed or developing nations with many problems in their governments and societies. These things are truly challenges for their national growth as well as citizen wealth but in the near future and long term, governments will never let African people to use Bitcoin and cryptocurrencies for escaping financial regulations from governments there.

CBDCs are favorite tools of all governments and central banks to observe, trace and govern financial flows and activities of their citizens. It's very strongly related to tax regulations while CBDCs can reduce production costs for central banks and governments.

https://cbdctracker.org/
https://www.atlanticcouncil.org/cbdctracker/
https://cbdctalks.com/