- As per Africa Report in September previous year, continent’s cryptocurrency market marked a significant milestone when sub-Saharan users attained over $80 million in digital asset holdings.
- Before cryptocurrency, African nations were admiring mobile money. Back in 2007, initial mobile money organization, M-Pesa, created a tsunami of shift in expenses of folks.
- Cryptocurrency’s popularity in Africa does not comes as a surprise when you consider monetary framework currency stability problems.
It’s Time For Africa
Which continent is home to 2nd largest Bitcoin market, CBDC, and cryptocurrency market growth of over $100 Billion during previous year?
You might be thinking it is North America, with its cluster of cryptocurrency organizations. Or in Latin America, with acceptance of Bitcoin as legal tender in nations such as El Salvador. Or maybe it is Asia, where digital asset market is constantly growing at a swift pace.
But mates, the answer is Africa.
As per Africa Report issued back in continent’s cryptocurrency market attained over $80 Million in virtual asset holdings — more than total users combined in United States.
Morocco, a Northern African nation, with a GDP ranking well outside the globe’s top 50 (United States is on top), has among largest cryptocurrency holding populace, with 2.5% of folks owing some kind of virtual currency.
From 2020 to 2021, continent witnessed a mesmerizing 12X increase in cryptocurrency transactions. This growth is not surprising to AZA finance team. During previous 9 years of functioning on continent, folks have witnessed huge surges in adoption of latest technology, thanks greatly to a young and mobile population all set to plug into virtual world.
Admiration of Mobile Money
Before cryptocurrency, African nations were admiring mobile money. In 2007, initial mobile money organization, M-Pesa, made a tsunami of shift in a way folks on continent store and spent funds.
Release of mobile money in Kenya was a huge success, with M-Pesa throwing its dominance over 99% of market shares.
This triumph led to widespread acceptance of mobile money. Now, over 60% of all international mobile money transactions flow via Africa. Continent’s populace has proven has proven that it is thrilled to adopt latest technology.
Africa has historically been isolated during a worldwide transformation because of long-lasting influence of colonization and stereotypes in rest of the globe. During previous industrial revolutions, African countries were frequently exploited for natural resources or labor, which assisted Western nations develop at expense of their own progress.
A Requirement for Crypto
Cryptocurrency’s fame in Africa is unsurprising when considering monetary framework and currency steadiness issues. Even continent’s robust currencies, such as South African rand, are among globe’s most undervalued. Cryptocurrency offers a more steady way to send and store money.
This story is similar to that African monetary framework. When international banks in SWIFT network — an international messaging platform which banks use to transfer information to and forth safely — started to reassess and sometimes finish their connections with domestic banks in ungrounding markets, a method called de-risking, friction, and cost of accessing global monetary services flew to the moon all over Africa.
Africa becoming a powerhouse for Web3 and cryptocurrency adoption moving ahead, is a rational progression. Element of reason Africa is still to benefit from crypto assets techs is because of counterproductive, antiquated mindset from heads of global corporations, monetary institutions, and other international companies.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/03/25/web3-calls-for-africa-theres-no-other-way/