Cryptocurrency is a form of virtual currency designed to work as a medium of exchange. The complex tender uses cryptography, a form of secret coding originating from the Second World War in order to process transactions securely and to verify them.
The first cryptocurrency was Bitcoin, which was created in 2009 and is used in most countries that have fully accepted Bitcoin (BTC) as a digital currency. In Africa, only a few countries such as Nigeria, Ghana, and South Africa are in top positions when it comes to the usage of Bitcoin (BTC) in carrying out certain transactions.
Three Reasons Why Majority of African Countries Should Use Cryptocurrency
It is an undeniable fact the use of Bitcoin (BTC) has not caught up with most African countries. However, there exists a number of benefits which the African continent can tap. Three of these benefits are as follows:
1) The Usage is Universal
2) Safe Net for the Unbanked Populace
3) Supports Money Transfer Platforms
The Usage is Universal
There are a lot of business transactions that go on across borders and on the continent. In all these transactions, the use of international currencies has become useful in making the business run efficiently. However, the risks of money transfers and high exchange rate continually affect business confidence and investments, especially in Africa. The use of Bitcoin (BTC) has come in handy because it’s more secure and safe. Moreover, it will help reduce the cost of doing business, especially in the area of high exchange rates.
Safe Net for the Unbanked populace
Africa countries have quite a number of its population who are unbanked. This has contributed to high liquidity and inflation in most of these African countries. The emergence of cryptocurrencies offers an opportunity for individuals and businesses to make payments or transact businesses without the use of physical cash. The populace also has confidence that their funds are secured.
Supports Money Transfer Platform
As of 2016, there were about 731 million SIM connections in Africa and this is expected to increase to 1 billion in 2020. Quite a number of this populace carries out mobile money transfers with aid of telecommunication platform such as MTN, TigoAirtel etc. Subscribers can send payments, make Bitcoin (BTC) purchases, carry out remittances and make exchanges through these well-known platforms. This will take away the hustle and stress customers have to grapple with at the banks.
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