Cryptocurrency to most people and institutions in Africa is a very big, and intimidating word. Like all new technologies, the concept of digital currencies remains an abstract idea to a lot of people, ushering in change and attempts to alter the status quo.
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But the truth remains unchanged whether we are ready or not, change happens. Those who take advantage of this change will get the benefit as early adopters. Now, this opportunity is now presented to Africans. The question now is not about cryptocurrency, the question is now is that they are going to harness the full power of this opportunity or not?
At the beginning of trade in Africa, they travel across lands and water for trade. The farmers from the west had cocoa; the nomads from the north had camels and other resources. Each measured the value of their goods or service and agreed to the exchange. “Trade by batter was born”. Then gold came, and other resources so people started using this as a form of trading, then promissory notes came, which were convertible based on the value of gold, or silver the issuer of the gold had in their vault. All these evolved into what we now call money today, and the unit of that money we derive from either the dollar, euro, pound even yen at the minute.
Now cryptocurrency has landed at the doorsteps of Africans. Bitcoin became the first decentralized cryptocurrency in 2009. Now there are over 1500 active cryptocurrencies that are trading for various values aimed at solving various problems all over the world at the moment. Africa is missing out the game once more because they are trying to figure out how to keep that they already have rather than think of how they can adopt these new solutions, and also protect their consumers.
In Africa, there are numerous problems of trade and movement of money because of the borders that are created by the colonists that still guide their ability to move money around today. You will find that most of their policies and laws dating back to the 60’s, 70’s, and 80’s. Blockchain technology helps them to solve some of these problems by providing Smart Contracts, Security data solution and Cryptocurrency, and much more.
Inflation is a huge problem in Africa and as we can see some of the countries in this continent struggle with managing the inflation rate on their fiat currencies i.e South Sudan which has an inflation rate of over 280%. Over the past 12 months, the African market has seen the emergence of more than 15 Bitcoin exchanges seeking to provide cheap and efficient trading services to African consumers. Some exchanges have expanded their services and have established an office in Africa to serve the new market and observe the demand for Bitcoin in several African countries.
The Central Bank of Nigeria, which oversees an inflation rate of 12-14%, recently announced that they cannot stop Bitcoin. Their statement read: “Central bank cannot control or regulate bitcoin. A central bank cannot control a decentralized cryptocurrency. Just the same way no one is going to control or regulate the Internet. We don’t own it.” This is very sensible and the correct and forward-looking approach.
For the first time, open-minded early adopters and innovators in Africa can change the game, and begin to create value for them on this continent. This is the time that Africans should adopt digital currency and get rid of all the problems like one of the biggest problem inflation rate and should also choose Best Bitcoin Wallet to store their Bitcoins. African entrepreneurs must embrace digital currencies, and find ways to make sure that they have owned their future rather than having someone else come into this continent once more to give them food.