Introduction
This week started off with the news of Jeff Bezos investing in a little-known African Fintech company called Chipper Cash. The company works on digital payments in several African countries and has started to gain the attention of many bigwigs on Wall Street.
Like Chipper Cash, many Africa-based start-ups are leading the digital revolution in Africa’s hinterlands. From 2015 onwards, there has been a growing interest in Africa around cryptocurrencies. Trends suggest a steady pickup in cryptocurrency trading and investing.
For a population, which has newly embraced mobile and digital payments, experts predict that this is something, which is going to gain traction in the coming years.
In this article, we look at cryptocurrency adoption in Africa. Besides, we speak to leading experts and point out certain factors contributing to the rise of the same.
Why is Crypto Adoption Gaining a Foothold in Africa?
Many experts are of the opinion that as compared to developed economies in the West and in Asia, the lack of complete financial inclusion is making it easier for Africans to adopt cryptocurrencies.
For Africans, cryptocurrencies are like mobile money. Since they are already embracing the same, the step up to cryptocurrencies is not too complicated.
In other words, the lack of information and doubts surrounding cryptocurrencies is boosting the spread and adoption in a major way.
As a continent, we all know how Africa has not been as economically strong as other continents. However, in terms of economics, there is a steady change in terms of improvements.
Africans are taking to crypto adoption at a time when there is a significant boom in the industry. To put it in another context, they have been able to see the benefits, minus all the problems of volatility.
Top Reasons Why Africa is Set to Become a Crypto Powerhouse
1. Lack of Traditional Employment Opportunities-
The absence of government and private jobs in African countries means that the population is looking for newer avenues to generate revenues. The internet has made it possible to explore digital opportunities to explore opportunities. This is pushing Africans in countries like South Africa to start using platforms like the Crypto Nation Pro.
2. A Bourgeoning Young Population-
Many countries in Africa are experiencing a boom in the young adult working-class population. Countries like India and China are also two other countries hoping to ride bug on their young working-class populations. Younger people are far more tech-savvy and aware of exploring opportunities in the crypto space and making a decent living.
3. Remote Working is boosting Crypto Adoption-
The internet penetration in Africa’s hinterlands means that people can work on trading platforms and exchanges and learn from them. Many Africans are now working remotely and offering digital services like Content Writing, Web Design Development, etc. The possibilities of earning opportunities have expanded with remote working opportunities.
4. Falling Traditional Fiat Currency Value-
Many African countries have been suffering badly because of the economic policies of their governments. The most recent case in point was Zimbabwe, which saw its currency plunge to record lows. The younger population is sick and tired of their leaders and their policies of governance. Crypto gives them a guard against faulty governmental policies.
5. The Rise of the African Remittance Economy-
Many African professionals who work in different countries worldwide have started exploring crypto as a form of remittance. They send money back home every month, and using cryptocurrencies like Bitcoins helps them save on transaction fees in a major way. BitPesa, which uses Bitcoins, has made it free to transfer Bitcoins for international transfers.
The Bottom Line
Major celebrities like Music Mogul, Akon is experimenting with a new city, powered by new crypto called ‘Akoin’. Analysts and financial experts are closely studying Africa as emerging as the new hub for cryptocurrencies. For a continent, which has always been deeply troubled by local issues, cryptocurrencies are emerging as a golden path to take the continent to a developed 21st-century model.