![]() Nigeria already launched its Central Bank Digital Currency, the eNaira. Unfortunately, some have not experienced much success in adoption by citizens. However, some countries already have CBDC in operation. Examples of such countries include Uganda, Kenya, Tanzania and Zambia among others. Several countries in Africa are already exploring the prospects of Central Bank Digital Currencies (CBDCs). An overview of cryptocurrency adoption in Africa Consumers can use cryptocurrencies such as Bitcoin as a store of value due to their deflationary nature. Such problems can be avoided through the adoption of cryptocurrencies. Zimbabwe is an example of how hyperinflation can collapse a country’s economy. The economies of many countries in Africa are at risk of collapsing due to inflation. This ensures the stability of the value and curbs inflation. Moreover, no central institution controls the value of cryptocurrencies. People are free to transact with whomever they want at any time. No central institution controls when and how people can transact. Decentralization removes third-party institutions that process transactions like banks.įurthermore, decentralization leads to financial independence and self-governance. This is possible through decentralization. These are close to zero if not zero in most cases. The only charge to consumers is the mining fees involved. Users can send funds to anyone in the world without any limitations.Īdditionally, cryptocurrency transactions are very cheap. First, cryptocurrency transactions are not border-restricted. The opportunity for crypto and blockchain in AfricaĬryptocurrency could be the solution to the challenges that face mobile money in Africa. According to TradingBeasts’ article about the biggest brokers in the world, various big brokers such as Exness, IQ Option and HotForex have already started adding crypto as a possible payment method that their clients can use. ![]() ![]() While these challenges impede the further growth of mobile money, crypto has a chance to thrive. These include Kenya, Nigeria, South Africa, Egypt, and Mauritius. ![]() Worse, several countries are considering introducing mobile money taxes within their borders. This could affect the continued adoption of mobile money solutions. This puts a strain on consumers as it increases the cost of transactions. These include Zimbabwe, Uganda, Ghana, Tanzania, and Cameroon. Several countries have recently introduced taxes on mobile money transactions. This makes cross-border transactions difficult or impossible.Īnother challenge facing mobile money in Africa is slowly developing. These MNOs primarily operate within a country’s border. Mobile Network Operators (MNOs) own and run the majority of the mobile money platforms. PC: īut, the mobile money industry is not without challenges. Additionally, partnerships with other financial institutions are pushing the expansion forward. Favourable policies and regulations are enabling this massive growth of mobile money. This is according to the GSMA in their State of The Industry Report, 2021. Most mobile money transactions in the world are happening in Africa. Interestingly, Africa’s stake in this is at 70%. ![]() The global mobile money industry recently passed the $1 Trillion mark. These include Nigeria, South Africa and Kenya at numbers 4, 10, and 13 respectively. Triple A’s crypto ownership data places three African countries among the top 20 countries with the highest number of crypto owners. This comfort with digital payment solutions is already helping the penetration of cryptocurrencies. Many users are already comfortable using digital payment solutions. The success of mobile money in Africa could be why this is possible. Many crypto owners are already residing in Africa. Africa could well be the next big frontier for cryptocurrencies. ![]()
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