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Cryptocurrency: Will Bitcoin Conquer Africa?

The bitcoin has been in existing ten years ago and has become progressively in the money market. Since 2008, this currency has blazed and is attracting the attention of users and many curious. The fact is that its value is growing every year to the point where a bitcoin is worth more than $ 1,000.

In Africa, the phenomenon is not new. It should be recalled that in countries like Tunisia the use of cryptocurrency has been done since 2000. Tunisian users are trading with the e-dinar, the virtual currency recognized in the country.

In Naïrobi, there are also cryptocurrency enthusiasts who use it on the market. Some Kenyans use the Nurucoin, the first African cryptocurrency. In Uganda, information confirms the forthcoming adoption of regulations on the issue. The state wants to frame the use of crypto-currencies, including bitcoin.

In Ghana, the sector is not supervised. Young people like Elisha Akyaw are also a reference in blockchain technology. He is 16 and he runs Token Media, a cryptocurrency marketing company he created last year. His activities have already raised nearly $ 40 million in cryptocurrency sales.

Bitcoin, a gold mine?

In Togo, the use of cryptocurrencies has not yet returned to normal. Some passionate about IT and financial services are still there. They can sell or buy bitcoins online. This is the case of a law student at Kara University who has been trading bitcoins for several months.

These online activities allow him to support himself. He earns more than 300,000 FCFA per month. “Bitcoin is almost a gold mine. You have to master the outlines and you can earn a lot, “he says. This young Togolese adds that thanks to blockhain bitcoin like other crypto-currencies are a safe option.

In the West African sub-region, bitcoin transfers are available in almost all countries. In Nigeria, bitcoin is used for sales and purchase transactions. Bitcoin was notably used for money transfers with a good exchange rate during the country’s last monetary crisis.

Buying and selling platforms

Importantly, platforms are being created on the continent for the purchase of bitcoin. In Lagos, there is the platform “Tanjalo” created by Tim Akinbo. This Nigerian computer scientist training now put all his professional activities on cryptocurrencies.

According to him, bitcoin is a boon for Africa where banking is still weak. A great opportunity for the continent that can use this currency to develop its business. “If I’m a businessman and want to sell a product via the internet all over the world, it’s hard for me to get paid. So it’s an interesting challenge that I think can be met with cryptocurrencies. Says Tim Akinbo.

Most creators of bitcoin buying platforms say that this virtual currency can also be economically sound with good management. “It’s much faster, it’s much cheaper than banking channels and it really depends on the amounts you are processing. Bitcoin is convenient for amounts under $ 1000, “recalls Tim Akinbo.

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Luno, the reference on the continent

In terms of the famous bitcoin exchange platform on the continent, Luno can be mentioned. Created in South Africa, the platform attracts more and more users. Luno’s activities began in 2013, the year of its creation. According to information, the strategies developed by the platform have allowed it to achieve unexpected goals. It must be said that Luno is supported by other companies specializing in money transfers and IT and financial services. The advantage is also that Luno can count on banks like Asba Bank of South Africa which opened to cryptocurrencies.

Marcus Swanepoel, who heads Luno, explains that the platform is used in some 40 countries. Luno wants to be everywhere. It has 1.5 million users including Nigerians and South Africans. The platform plans to conquer other emerging markets. But “we want from 2025 to reach 1 billion users. Bitcoin is so open and global, it’s really an achievable goal and we’re excited to continue, “said Marcus Swanepoel.

No guarantee

Despite the real opportunities offered by bitcoin, some experts believe that you have to know how to use it. They declare that this cryptocurrency has no guarantee and is not pledged on any value. For example, a Nigerian monetary expert explains that bitcoin is not guaranteed by a particular state. He adds that users can lose their money at any time. His remarks are confirmed by Nanga Koné also specialist in the transfer of money. “Today you can own $ 10,000 or $ 10,000 in bitcoins, but you do not know why tomorrow it can go down to three hundred! You have no economic justification for the thing. From that moment, it’s too risky for my taste, “he says.

This is why detractors of the cryptocurrency refute that it is used for money transfers. “You have a Canadian customer who gives you cryptocurrency for a customer in Ivory Coast, overnight you have 70% variation,” Manga Koné says before adding: “And the customer is a loser because usually the transfer operator will always protect himself by saying that he transfers this value provided that the market does not vary by a certain amplitude. ”

Prohibition for security reasons

To these concerns are added the results of a study carried out by researchers from the universities of Riga and Sidney. Academics explain that “44% of global transactions in bitcoins are involved in illegal activities.” Because of the risks associated with the use of cryptocurrencies, the Moroccan authorities have decided to have control of their monetary system. Morocco banned more than three months ago the use of cryptocurrencies on its soil.

Abdellatif Jouahri, governor of the country’s central bank, justified the ban by saying that bitcoin is not a currency because it does not obey the three functions of a currency. “A currency must be a means of payment, a stock of securities and an instrument of savings,” he adds. It should be noted that Algeria has also banned cryptocurrencies for security reasons.

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Written by How Africa

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