When cryptocurrency is being talked about we rarely hear Africa being mentioned well that is about to change, because one,Interest in cryptocurrency, a form of digital currency, is growing steadily in Africa. Some economists say it is a disruptive innovation that will blossom on the continent.
Secondly Cryptocurrency is not bound by geography because it is internet based; its transactions are stored in a database called blockchain, which is a group of connected computers that record transactions in a ledger in real time. Citizens of countries that battle with high inflation are likely to opt for cryptocurrency, because with their paradigm of decentralization, cryptocurrencies offer an alternative to disastrous central bank policies. As i said earlier Africa is rarely mentioned in cryptocurrency talks but with countries like South Sudan,Egypt,Nigeria,Zimbabwe e.t.c. facing double digit inflation Africa is ready to steal a march over all other markets. Another favourable cause to the spread of cryptocurrency in Africa is That African governments are not now regulating cryptocurrency may be a factor spurring its growth on the continent; however, there is no guarantee that governments will not change their current mindset.
Rather than simply not wanting to, governments may be powerless to regulate cryptocurrency, the Nigerian central bank indicated recently. Currently tackling the country’s 12% inflation rate, the Nigerian apex bank announced that it could not control or regulate Bitcoin, “just the same way no one is going to control or regulate the internet. We don’t own it.”
Fearing a collapse of the banking industry or arbitrary appropriation of money by the government, Africans without access to banks and who live in politically unstable countries could be attracted to cryptocurrency. Cryptocurrency transactions help to eliminate the procedural bottlenecks that plague traditional banking and financial services. Below is an image of the inflation rates of some African Countries.
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