Growth of Bitcoin in Africa
Jul 28, 2017 Posted / 6385 Views
Bitcoin is gradually finding a home in Africa. In countries like South Africa, Ghana, Kenya, Botswana, Zimbabwe, Tanzania and Nigeria, there is a semblance of digital currencies, primarily bitcoin, taking roots and it is already playing a key role in the unsteady financial systems of some developing markets.
South Africa has already witnessed a surge of bitcoin activity and interest as the digital currency has taken a foothold in the country. It now appears bitcoin is seeing rapid growth in other areas of South Africa. Razor Forex recently posted data from Coin Dance suggesting Nigeria and Tanzania have both seen increased bitcoin trading.
South African countries are embracing bitcoin as Google Trends points out significant interest is arising from Nigeria and Ghana. Furthermore, according to a research report from the wallet provider Luno, concerning South Africa, bitcoin is attractive to citizens within the country. Luno’s report also details that 66 percent of South Africans surveyed say they trust bitcoin. 12.9 percent of responses say South Africans are using it for faster payments but 39.6 percent of those surveyed are holding bitcoins as an investment vehicle.
According to coin.dance, which is one of the largest online portals for bitcoin based data, trading of Localbitcoin has been proliferating in Nigeria and Tanzania since the month of July. The Forex website echoed that sentiment: “Recent information from Coin.dance, a blockchain information portal that provides present metrics on several sectors of a Bitcoin ecosystem, advice seductiveness in a digital banking is rising in Tanzania and Nigeria.”
Bitcoin trade with a Nigerian naira strike record highs during 971,829,166 value of Nigerian naira exchanged, that is a homogeneous of about $3 million USD. There is not one specific reason because a Nigerian bitcoin trade has grown so rapidly, though there are clues. The Nigerian people do not indispensably have faith in fiat banking anymore. A Quartz article expanded:
“In Nigeria, local traders and activists believe this new money presents an opportunity to democratize the economy. This is propelled by the fact that people in Nigeria have been failed by conventional money.”
Many African countries like Nigeria are flourishing some-more quick than others like Tanzania. However, Tanzania appears to be usually now embracing a bitcoin fever. Tanzania’s volume pales in comparison to Nigeria’s; it is just over one percent but it is the spike in growth that is worth noting as the numbers coming out of the small nation are indicative of Bitcoin spreading outside the African powerhouses and into the more rural nations. Trading around localbitcoin.com has skyrocketed. A small over 83 billion Tanzanian Shillings have been traded this month. Previous months of bitcoin trade usually floated between 10 and 20k.
This suggests Tanzania might be fastening a rest of Africa in embracing bitcoin as an improved or many useful form of currency.
Just recently the payment platform start-up Bitwala announced a new service offering bitcoin-to-M-Pesa transactions at zero cost. Bitwala customers will be able to utilize the service to send funds to friends and family members in Kenya, Nigeria, Uganda, and Tanzania free of charge.
Other companies focused on bitcoin remittance applications in Africa are also making headway in the region. Last month the African payment services provider Bitpesa partnered with the bitcoin-based lending platform Bitbond. In order to make cross-border lending possible both companies utilize the bitcoin blockchain for faster, more efficient payment processing.
“This means that a small business owner from Kenya can receive loan funding from investors from all over the world via Bitbond and have the funds paid out to his mobile money account in 20 minutes,” explains the founder of Bitbond Radoslav Albrecht. “This is an unprecedented level of innovation and convenience in the entire online lending space.”
What do you think about bitcoin’s success in Africa and the South African region? Let us know in the comment section.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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