While Africa is not one of the biggest crypto markets, there is no doubt that cryptocurrencies are increasingly being discovered. Crypto coins are taking root in countries such as Kenya, Zimbabwe, Nigeria, and South Africa.
This explains why the country with the highest online search volume for Bitcoin was Nigeria. Among other factors, the surge in crypto companies and crypto exchanges mainly stems from challenges Africans face with online payment transfers. However, even as cryptocurrency seeks to take shape, several roadblocks prevent it from flourishing.
Why Africa Should Adopt the use of Cryptocurrencies
Without a doubt, Africa has a huge potential to leapfrog some of the current financial services for crypto exchanges for several reasons.
As the rest of the world leverages cryptocurrencies, advocates in Africa should campaign for increased use of crypto and blockchain technology; the same way cryptocurrencies made their way into the gaming industry with their adoption in several games, including Danger High Voltage.
Unlike before, the adoption of these exchanges will make cryptographers the new central banks, and everyone interested in crypto exchanges becoming the owners of financial infrastructures. Cryptocurrencies in Africa will provide hope to nations that lack reliable economic systems and governance. Easy access to your finances, assured security, privacy, and secure medium of exchange will help the African continent.
Most African countries currently have crypto projects as more businesses recognize the importance of cryptocurrencies in enhancing trades and payment across borders. That aside, there is a ready infrastructure for the adoption of these digital tokens. Continuous liberation in telecommunication across Africa has led to widespread internet accessibility.
Currently, half of Africans subscribe to smartphone telephony, and smartphone usage has doubled to 226 million over two years. These figures not only show that Africans are more than ready for these new financial exchanges but also position Africa’s economy in a better place for the financial future.
Unpredictable local currencies are another reason why Africans should embrace crypto exchanges. A study of several African countries reveals unusual inflation ratios, such as South Sudan, with 295 percent and Egypt with 12.30 percent inflation ratios.
With such unpredictability in local currencies, African countries should take advantage of cryptocurrencies to enjoy a stable value and evade inflation. This explains why withdrawals from most online games such as online casino vergliech differ from time to time.
Africa is prepared to shift to crypto businesses and crypto exchanges than other continents in many ways. For instance, the widespread use of mobile money has significantly reduced the percentage of adults without banks. Coupled with the number of people open to this new technology, exchanges with functional mobile apps for users will be of immense value.
The Challenges facing crypto exchanges in Africa
Even as most African countries open up to crypto exchanges, three main challenges impede its popularity. They include;
1. Limited Crypto Infrastructure
Lack of sufficient crypto exchange infrastructure is probably the major limiting factor preventing Africans from enjoying cryptocurrency exchanges’ full benefits.
The Minimal spread of the internet in Africa hinders the adoption and use of crypto exchanges. So to say, Africa has only 39 percent of internet penetration, compared to the global average of 59%.
Without a doubt, success in crypto exchange adoption requires that most Africans have access to fast internet.
2. Restrictions by Governments
Despite Africans cheering up on this technology, governments have serious reservations against blockchain technology. Currently, more than 60% of African countries have not clarified their clear stand on cryptocurrency exchanges, leaving potential consumers in a dilemma.
Some countries, including Zambia, Libya, Algeria, Morocco, and Namibia, have completely banned the use of crypto exchanges.
This probably explains why only 20 nodes out of the 10,267 available bitcoin nodes are from Africa. Ethereum and other crypto coins have even smaller fractions. Of the nodes in Africa, the majority are located in South Africa, making the country a bright spot for crypto advocates.
3. Competition from Mobile Money Providers
Further adding to the challenges of these exchanges is the stiff competition from mobile money service providers. While mobile money adoption has led to significant internet spread in the continent, it hinders crypto exchange adoption. Most consumers hesitate to make the switch from the popular mobile money services to unpopular exchanges.
Evidently, several challenges lie ahead of the adoption of crypto exchanges in Africa. This is because of how hard it is to popularize cryptocurrency exchanges while other Africans consider it too technical.
Even then, its popularity has increased in Africa, as more people realize that it is a better option than Western Union. With that said, what do you think is the future of crypto exchange in Africa? Please share with us in the comments.
Thomas Glare is a young and dynamic writer in the field of everything related to the most sensational developments in technology and virtual currencies. Whether e-wallets or crypto – the articles are well researched and developed from beginning to end and are always worth a read!