Africa is one of the largest of all continents. Millions of people live in this part of the world. It’s a large consumer market and getting larger all the time. One of the many issues confronting many of the residents of Africa is how to pay for things. Currency fluctuations are common here. That’s why many experts see this as one area that may be quite receptive to the ideal of all that cryptocurrency has to offer in the modern world of commerce. It’s no wonder that many experts are watching this part of the world closely. They only expect to see expansion even further as more and more people decide to buy cryptocurrency.
As of right now, this part of the world gets only a mere two percent of the global value of all of the world’s cryptocurrency. However, this is expected to change in the near future. This part of the globe is headed more towards the world of global currency and digitalization. Not only that, but many Africans are moving away from the rural areas where they currently live. They are expected to engage in the process of creating larger cities across the continent as well as suburbs spreading out from these centralized hubs. In doing so, experts see the possibility of transformative finance.
Many Billions
A close examination of this corner of the globe revealed that, in a single year between the start of July 2020 and the end of June 2021, the continent was the recipient of more than one hundred and five billion dollars in total cryptocurrency payments. This marks an increase of more than a thousand percent when compared to the previous year. Certain countries were particularly receptive to this process. Nations like South Africa, Kenya and Nigeria were among the most important countries in the world when measuring the use of cryptocurrency.
Facilitating Remittances
One of the single most vitally important tasks for many Africans living in Africa as well as those who have chosen to make their homes abroad is the issue of remittances. Remittances form a major part of the world of global commerce. Many people in this part of the world lack access to traditional forms of banking services. That can leave them at a disadvantage in the world of commerce. Using crypto for payment has the ability to bypass such traditional institutions and allow greater access to the funds that many people need for their daily activities.
African Policymakers
African policymakers are in the process of figuring out how to work with this new form of currency. Officials point out that many have underestimated the impact of the currency on their residents. They have allowed crypto exchanges. Yet many nations have not offered the kind of regulatory framework that would allow for greater use of these currencies across borders. Some governments such as Kenya are working through the process and facilitating their citizen’s use of this method. That brings hope to many more looking to make use of this kind of modern currency.
