Bitcoin has been accepted highly on other continents across the globe. However, most nations have not considered it a decentralized asset utilized in storing and transferring value in Africa. The main challenges facing the adoption of Bitcoin or other cryptocurrencies in the continent include:
Inadequate cryptocurrency education
In all the African nations, no framework has been established for offering cryptocurrency education. Most people just use social media platforms to learn or get more information. Some of the social media that are mainly utilized include Instagram, YouTube, TikTok, Facebook, and Twitter.
Apart from social media, they dig for information from blog articles and books. Moreover, the primary information that Africans do need includes private companies, individuals, and cryptocurrency exchanges. Therefore, in reaching more clients, it is essential to provide more insights regarding Cryptocurrency as well as the leading players.
Education is an essential thing before commencing to engage in the world of Cryptocurrency. People can not buy something that they do not understand the way it works. Therefore, the significant cryptocurrencies should work toward providing more information on the way it works and how one can trade them.
The issue of lack of education has made many firms come in the form of being players in the cryptocurrency market. Africans have been conned billions of dollars in the name of making more profit. The companies that scam people have made most the Africans lose trust in Cryptocurrency as well as its trade.
Lack of Regulation and Trust
The cryptocurrency world is fast changing. Unfortunately, in some African nations, there is no proper regulation. It means that some of the firms may be put out of business, yet it is another body that is affecting their operations. Therefore, it is essential to have regulatory frameworks to be successful in the adoption of Cryptocurrency.
The cryptocurrency world is fast changing. Unfortunately, one of the risks affecting the market of Cryptocurrency is inadequate regulation in almost all the African nations. Inadequate regulation means that a firm can be put out of business just overnight.
In business, regulation is essential. If a business is not regulated, then it means that every company can just do what they want without caring whether it is the right or wrong thing. Regulations must be there for the players to be safe. Even in the banks, we have to follow the rules, including transaction limits, the number of transactions in a day, and the minimum capital.
Apart from regulation, trust is needed for Africans to fully adopt cryptocurrencies such as bitcoin. Most of the firms have written letters in the quest for regulation, but it has not been successful. It is the regulation that will make people trust trading in cryptocurrencies. The reason is that it will ensure that there is consistency.
Furthermore, people do not trust Cryptocurrency because it does not have value. No real value is tied to any kind of Cryptocurrency. Therefore, they believe that in the future, it will be worth nothing or little.
The other reason why people do not trust bitcoin is that the government does not back it up. Unfortunately, of the features that define any cryptocurrency is a decentralized asset used in securely storing and transferring value , meaning that the government does not have to oversee it. Besides, some individuals only feel comfortable and safe with the assets controlled by the government.
Most of the Main Regulatory Bodies are Banning Digital Currencies
The regulation of crypto in most African nations is somehow unfavorable. The frontrunner nations such as Mauritius and South Africa have shown the way progressive enhances enormous benefits. Unfortunately, to get the benefits, it is vital to consider the kind of regulatory approach that will impress the private sector.
Even though most of the governments of the emerging markets watch the way the United States, as well as the nations that adopted Cryptocurrency, they can bring solutions. They can do this by availing of sandbox solutions that come from the financial service providers. Thus, such things affect the adoption of Cryptocurrency in Africa.
The money transfer companies, including OFX, World Remit, and Western Union, offer a creative way of finishing the know your customers’ checks. It means that one does not have to necessarily provide tax returns and a fixed address.
Inadequate Market for Cryptocurrency
In Africa, unlike the other continents, there is no significant market for Cryptocurrency. However, it has really grown currency as compared to the past years. Maybe Africans now realize that adopting it i s the way to go . Some of the African nations that have adopted the utilization of Cryptocurrency include Ghana, Kenya, Zimbabwe, Nigeria, and South Africa.
There are over 50 nations in Africa. Unfortunately, only five of them have adopted the usage. In addition, in a country like Nigeria, where the residents adopted Cryptocurrency, in 2017, things changed, and the government banned its use. According to the government, Bitcoin investments did not have a cover in Nigeria. The government even went further to warn all the financial institutions and banks in the nation from transacting, trading, holding and using virtual currency.
The African firms that transact through cryptocurrency technology
Bankymoon is a consulting firm as well as software that has proficiency in Blockchain technology. Moreover, it is located in South Africa. The company develops bespoke solutions for its consumers who need Bitcoins as well as the other kinds of cryptocurrencies. Also, it has launched an intelligent meter technology blockchain as a solution for consumer banks with no formal banking utilities and the electrical utilities which struggle to collect revenues.
Leaf is a company located in Rwanda. It develops a platform for mobile applications to facilitate the conversion of currencies to virtual currency. The technology used is blockchain technology, and it does not have to access the African banks.
Centbee is a South African Bitcoin. It has been growing over the years as it has global ambitions. Moreover, the firm is highly specialized in merchant payments, cryptocurrency related products, and cross-border remittances. The enterprise also gives users the chance to make transactions using Bitcoin SV.
Akoin works towards enhancing financial stability in Africa as it offers a secure monetary system and boosts economies. It was launched in 2018 by Akon, the Senegalese singer, and it gives consumers the chance to save, spend, and buy Akoin directly through the mobile application.