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Inadequate Cryptocurrency Platforms and Few Freelance Traders Affecting Cryptocurrency Adaptation Africa

Mar 05, 2018 Posted /  2907 Views

Inadequate Cryptocurrency Platforms and Few Freelance Traders Affecting Cryptocurrency Adaptation Africa

Monopoly and Few Local traders Hindering Cryptocurrency uses in Africa

In most parts of Africa exchanging cryptocurrency to the local fiat currency still remains a major barrier to the complete adoption of cryptocurrency to aid mainstream businesses, Interpersonal microtransactions and remittance from abroad. The existing platforms like Remitano, an international cryptocurrency exchange with reach in many african countries charges over 30% in transaction fees.

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In most parts of Africa remitting money back home for school fees or upkeep of relatives and friends back home via a cryptocurrency is almost impost. This is because bitcoin transactions is currently very expensive and tricky to navigate the ethereum option faces a major barrier of how to exchange it directly into a local fiat currency.

Unlike the Bitcoin trading network, Ethereum still lack enough exchange platforms with local traders in most African countries. In Kenya for example it is possible to change a cryptocurrency directly into the kenyan shilling using BitPesa, a digital forex exchange and payment platform based in Nairobi. For other countries few or no exchange currently exist living a big gap for cryptocurrency adaption.

Some Countries Have Cryptocurrency Favouring Environment

The African case unfortunately does not apply to all african countries with other countries especially South Africa, Ghana and Nigeria having favoring environment and infrastructure for conducting cryptocurrency trading. This is majorly because most African Government are still reluctant to carry out a detail investigation on cryptocurrency and blockchain technologies.

In Uganda, East Africa little aspect of cryptocurrency exists and the government under the department of Bank of Uganda, the chief financial regulator in the country has on several occasions referred to cryptocurrency and bitcoin as a scam. The bank has failed to differentiate between some crypto scams like one coin and the legitimate bitcoin  and the benefits it can offer the country.

Meanwhile other countries of the world are pushing cryptocurrency development and blockchain research to the next levels, most african countries are still stagnant with the thoughts that cryptocurrencies are scams. This legal status attached to cryptocurrency and blockchain technologies is a major barrier to the development of cryptocurrency and blockchain technologies in these countries right from university colleges.

How Cryptocurrency Usage can be Boosted in Africa

With a negative government response to cryptocurrency and widespread ignorance about bitcoin, blockchain and how cryptocurrency operate, boosting cryptocurrency remains a tricky task on a small startup firm point of view. But nonetheless the escaping government regulation has already been coded in the DNA of cryptocurrencies and they can reach more than 100% adaptation in any country without a significant hindrance the the government.

In my view the only barrier to cryptocurrency global adaptation is individual view and finding a purpose to enforce the use of cryptocurrencies. With a well established purpose which should be beneficial to the final users cryptocurrency adoption will just be automatic just the way people fight hard to earn money.

The task now remains in the hands different startups to develop ideas that solve real problems in the communities and deploy cryptocurrency as the main asset in the process. This process should be well investigated at the grassroot level to identify the problems before a solution package can be developed.

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Tags: Cryptocurrency Platforms cryptocurrency adaptors Exchange cryptocurrency

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