Industry analysis

The deployment of cryptocurrencies in African countries

Banks see Digital currencies as a dilemma

Cryptocurrencies in African countries – Most African countries have still not been able to fully integrate digital currencies into their economies. This is because of the country’s very strict governmental polices that have remained firm over the years alongside banks.

According to new reports, a good amount of Africans have displayed great interest in the innovative economy that cryptocurrencies have presented to the world.

Only a few of companies on the African continent still have the power to influence financial decisions thereby hindering the support that the adoption of cryptocurrencies can bring to some of its failing economy.

However, The policymakers of the continent have began creating a more flexible regulatory process in order to implement the full usage of cryptocurrencies.

Traditional Banks on the continent

The Banking system in Africa has made its mark on the financial system as one of the oldest and most adopted known in the global economy. However, cryptocurrencies have displayed a stronger medium for speed and security, which is making traditional banks become a secondary option for the general public.

Banks have still been able to stand strong, as they have a better understanding of the monetary system and monetary policies of the continent.

Countries like Nigeria, one of the most populated countries in Africa have a minimum of five banks with more than five thousand customers each. This also includes small cities in Nigeria like Bayelsa state and Port Harcourt.

If the rate of banking in the country is considered, it becomes less puzzling that countries like Uganda has reduced Bank usage to individuals and is more connected to the possibilities that cryptocurrencies are offering.

The Government in Africa and cryptocurrencies in African countries

Government in Africa has remained one of the top opposers of cryptocurrency dominance in the country. As cryptocurrencies do not only represent financial freedom and independence but also freedom of choice to individuals around the world.

When it comes to countries like Nigeria and Ghana, the regulations of cryptocurrencies is still against the government’s policies, and is therefore in need of more entrepreneurial interest.

There are a few cryptocurrency exchanges in the country of Uganda and Senegal with ongoing projects like Akoin.

These countries have also been working on regulatory policies as it sees a bright future for the financial application of cryptocurrencies.

Do you have any thoughts on the usage of cryptocurrencies in African countries? Feel free to leave comment down below.

coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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