The use of cryptocurrency is on the rise in Africa. This is mainly because there exists no stringent regulations against it, the general inefficiency of the banking sector, and the increased adoption of mobile transactions. People want to keep their money where it feels safe, to access it with ease, and to transact at no cost or at the lowest cost possible. Bitcoin offers all of that and more. Many Africans are seeing bitcoin as an opportunity to enterprise. An example is Malawian entrepreneur Grey, who helps customers meet their financial needs through bitcoin. His venture is also useful for those who find it difficult to access credit cards, as bitcoin is a much better alternative. Apart from being a startup idea for enterprising Africans, bitcoin is also helping existing businesses and individuals transact at much lower costs. Africa loses billions because of high cost of remittances and international money transfers. The use of bitcoin can lower these costs by 90%. Moreover, the use of bitcoin could streamline intra-regional trade in Africa, which will in turn generate billions of dollars for the continent. The government and all stakeholders therefore need to create the right environment for digipreneurs to thrive. Read more at Africa News
Dear D –
The use of bitcoin is becoming the new business and way of business for Africans. The limitations, however, include limited knowledge among Africans about how the currency works and the government’s eagerness to find a way to regulate it due to its rising popularity. Many startups have budded and are still budding in the continent in bid to take advantage of the increasing demand for bitcoin. ChamaPesa is one such startup formed to cut the cost of banking transactions for SACCOs and other group savings schemes. Businesses such as Zam Zam Water and Grow Educate Centers raise funds using cryptocurrency as well. Paxful, a peer to peer bitcoin marketplace is serving entrepreneurs in several sectors including shipping, import and export, and payment services. What other businesses do you know of that have adopted cryptocurrencies? What do you think about the future of bitcoin startups and their use in Africa? Share.