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Africa View Of Digital Currencies And Blockchain Technology

2018-09-06 02:18 pm | Resource: Crypto Section | No Views : 485

Africa View Of Digital Currencies And Blockchain Technology Africa is steadily accelerating the transition to modern technologies, but can a continent facing a crisis with outdated banking technologies, low financial inclusion, weak confidence in the banking system and rising remittance costs become a new battleground for blockchain technology and digital currencies? To find a solution in today's report.
The continent's booming technological progress is reflected in the rapid growth of mobile phone use, both as a payment and as a bank account, with more than 100 million active mobile phone users, which deal with about $ 2.1 billion a year, according to McKinsey & Company. In the area of ​​financial settlements based on mobile phones.

South Africa

This country is the second largest economy in Africa after Nigeria, with a GDP of $ 350 billion, according to the International Monetary Fund. In South Africa, the popularity of digital currencies is increasing. Google indicators indicate that the highest number of searches for the world's Bitcoin occur in the southern African country. About 50 percent of South Africans plan to put some money into the digital currency market, Conducted by the magazine in 2018.
Africa's most developed economy is home to a number of digital currency markets - including Luno, which operates in 40 countries around the world - allowing people to buy and sell digital currencies such as Bitcoin in the local Rand currency. Local financial companies are now entering digital space.
Digital currencies and South Africa
Syginia Asset Management announced plans to open a Sygnia Coin stock market in the last three months of this year. A large group of start-up companies using distributed notebook technology, including Johannesburg-based Tari Labs.
South Africa shows tremendous potential to become a leader in the development of the Blockchain in Africa, benefiting from its advanced financial and technological infrastructure, a friendly regulatory environment and increased public interest in virtual funds.

Nigeria .. First economy in Africa

In 2014, Nigeria overshadowed South Africa as the continent's largest economy, with GDP of $ 400 billion. But big disparities, corruption and illegal financial flows still exist in Africa's most populous nation. Digital currencies and Blockchain technology, in Nigeria, are being wary of Central Bank Governor Godwin Emily, who likened digital currencies to "gambler" smiles. But the Nigerian parliament has investigated the advantages and disadvantages of using the Bitcoin as a means of payment. In spite of all this, Nigerians continue to sink the digital currency space in search of cheaper and faster ways to send or receive money abroad.
Nigeria and digital currencies
According to Citigroup, Nigerians represent the world's third-largest Bitcoin holdings, as a percentage of GDP, after Russia and New Zealand. Ignoring warnings from financial regulators, a wave of emerging companies in the country has taken to initial currency offers, a way that emerging companies raise funds by issuing new digital currencies to the public. One of those companies is Sure Remit, a money transfer company, $ 7 million is presented within two days of the ICO's public offering.


Several weeks have passed since the Kenyan parliament last July mandated the country's finance ministry to decide whether or not to regulate the currency of the Bitcoin and others. There was no official contact from the Kenyan government regarding its final position on the future of the Bitcoin. However, in April, the Kenyan central bank warned banks against dealing with companies operating in the virtual currency trade, or that the banks themselves are investing in digital currencies at all.
Digital currencies and Kenya
Under the cover of these warnings, the Kenyan authorities appear to be more attracted to the Blockchain technique than they were encrypted in March. President Ohoro Kenyatta created an 11-member team to investigate the distributed notebook technology, especially its potential use in removing land registry errors. Mr. Kenyatta's government has in the past blocked the exchange of the Bitcoin through Mpesa, the mobile money service provider of the Safaricom cellular provider, of which the government owns 35 per cent.
On the streets of Nairobi, the Bitcoin continues to flourish despite the uncertainty of its future. Bancor Network, a biotechnology company based in the Kenyan capital, announced last June plans to launch a network of Blockchain-based communities to help East Africans manage their digital symbols, using part of the $ 150 million they collected in a symbolic deal in the last year.

Uganda and Botswana

Despite warnings from the Bank of Uganda against the use of unregulated currencies in the form of Bitcoin and other digital currencies, China's international stock exchange Binance has expanded to the central African country, one of the poorest countries on the continent.
Ugandan President Yoweri Museveni spoke positively about blockchain technology, but not digital currencies. The African Conference of Blockchain, organized by the Blockchain Association of Uganda, said in Kampala in May that "a new technology is needed to enable things to move more quickly and with her".
In Botswana, the government paid little attention to digital currencies because of a very low level of Bitcoin adoption. The Central Bank of Botswana did not comment on the digital currency or Blockchain at the time of writing, there was no known exchange of digital currencies in Botswana.

Namibia and Zimbabwe

Namibia officially banned the use of digital currency for commercial purposes in 2017. The Bank of Namibia did not specify penalties for violating the ban, but warned that "a local store is not allowed to buy or accept virtual currencies for goods and services." The Namibian dollar and the South Rand alone were the legal tender in the country, but they remained open to the possibilities offered by Blockchain technology.
African countries and their relationship to digital currencies
Similar fears have spread to neighboring Zimbabwe. In May, the Zimbabwe Reserve Bank directed banks to cut ties with coded exchanges, Golix and Styx24, in a virtual ban on currencies that were largely unexpected. In the past, the central bank has set its warnings to cautious statements about the risks involved in trading virtual currencies.

Egypt, Morocco and Algeria

The unification of the three North African countries, some of the continent's leading economies, to ban digital currencies in their respective economies is fraught with common religious beliefs. Under Islamic law "commercial and commercial transactions are subject to clear contracts and rules" Bitcoin does not say religious leaders. Instead, it promotes tax evasion and terrorism among other financial ills, they say.
Digital currencies and Arab countries
In Egypt, the FSA denied that it had given the green light to exchange digital currency under the name Bitcoin Egypt to set up shop in the country. The central bank said the country's banking system deals only with "official currencies and does not deal with any hypothetical currency."
The situation in Egypt, the third largest economy in Africa, reflects on a large scale what is happening in Morocco and Algeria. The Moroccan Foreign Exchange Authority (DESA) described Des Changes as "a hidden payment system not supported by any financial organization". He repeated that all currency transactions must pass through the central bank, and warned the market authority that anyone who uses virtual currencies will face substantial penalties.
In Algeria, it is illegal to invest in or keep any digital currency. A financial bill is expected to become a law will punish the encumbered investors "in accordance with the regulations in force."

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