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​Why is Africa still too late to adopt Cryptocurrency?

2019-03-22 02:24 pm | Resource: Crypto Section | No Views : 247

​Why is Africa still too late to adopt Cryptocurrency? Africa continues to dominate Google Trends search for Bitcoin (BTC), but this has not translated into widespread adoption of digital currency by users and businesses, regardless of vague organization and lack of awareness. One of the main reasons for this failure is the widespread use of funds Mobile on the continent.

Africa dominates the search for Bitcoin and relying on it is disappointing

According to Google Trends, the biggest interest in searching for Bitcoin in the world is by potential investors from Nigeria, South Africa and Kenya, the three largest digital currency markets in the continent, dominated mostly by stock trading. On a few occasions, Bitcoin can be used as a payment method, mostly for external suppliers.
But despite this world-leading interest, Africa is lagging behind the rest of the world in the use and adoption of Bitcoin on a daily basis. The digital currency has found it difficult to break the grip of comfort, simplicity and efficiency that attracts millions of Africans, like magnets, of money. The continent of 1.2 billion people has more than 50 per cent of the world's mobile money services.
For example, with the phone's basic phone, one can send or receive money via SMS anywhere within a particular country, without the need for an Internet connection. In comparison, you will need a smartphone and a secure Internet connection to complete a single transaction in digital currencies, although the use of the Internet has risen sharply over the last 20 years, but users from Africa account for only 10 per cent of the world total, Continuing power supply in many countries is also hampering access to the Internet on which digital currencies depend to a large extent.

Reasons behind the black continent's dependence on digital currency

Vinn Armani, founder and chief technology officer of Cointext, a free online wallet service that allows users to send or receive Bitcoin via SMS - just like mobile money - believes his service could compete with mobile money in Africa, but Cointext is currently available In South Africa alone, and it is not clear how many people actually use the service there, but stressed that the company is ready to issue a major declaration giving them global coverage (in each country).
Another Cointext official explained that:
"We are currently working on a combination that makes us available for smartphones across Africa, and separately we are also working on SMS solutions for a few African countries."
Elisha Aksuo, an influential 17-year-old digital currency investor in Ghana, has made a fortune investing in Bitcoin, and believes digital currencies should be integrated with mobile banking platforms. "
"The power of financial technology to expand access to and use of accounts more convincingly in sub-Saharan Africa" ​​is detailed in the World Bank's Global Findex database, which is detailed in its questionnaire on financial coverage, which found that 21 per cent of adults In the continent they now have a mobile money account, this is almost double the share in 2014 and easily higher than any region in the world.
If this is not enough, digital currencies are likely to have to fight to gain any reasonable market share in African-dominated payment systems, and the region is often described as the next limit for virtual currencies. In Zimbabwe, with Econet Wireless listed on the stock exchange, 95 per cent of the mobile phone market share through the Ecocash platform, a seven-year-old service, is so successful that virtually every government department relies on it for electronic payment.
With more than 6 million users in the southern African country, Ecocash has handled more than $ 23 billion in transactions since its launch in September 2011. It has more than 32,000 dealers throughout Zimbabwe. This is a kind of entrenched competition that digital currencies will have to face. There will be 725 million mobile subscribers in Africa by 2020, according to the GSM Association, which can enter into digital currency or mobile money.

Recordings are cumbersome to use digital currencies

Bernard Barra, a 26-year-old businessman from Lagos, Nigeria, two years ago, founded Bitnob Quickserve, a system that allows Africans to buy and redeem coupons for BTC without having to complete the KYC or AML procedures. Barra assumes that one of the biggest obstacles to the adoption of a digital currency is the maze of checks required by exchanges at registration.
Barra said:
"We believe the service will reduce the entry barrier for many people who wish to experience Bitcoin currencies here in Africa." He added:
"Users need to make it simpler, many users give up for the first time at a time when they need to upload their personal identity details to verify."
Barra also pointed to the fear of losing money without recovery. "Bitcoin's address is like a foreign language for new users." Barra said:
"Many people are not ready to be their own banks, they prefer stability to security, there is a need for greater awareness and education about digital currencies in Africa."

Counterfeit schemes hinder the use of digital currencies in Africa

A series of counterfeit Bitcoin schemes did not help in using digital currency in Uganda, for example, thousands of people fell victim to a number of Ponzi schemes, including the D9 Club, which promised to pay BTC members. The plan, which has now collapsed, is denied as a sports business, promising members huge weekly payments at Bitcoin on an initial investment of $ 250 to $ 2,000.
Chemzi Shota, IT Specialist and Enthusiast for Bitcoin from Nigeria, said:
"Scams give Africa a bad name for digital currencies. As always, regulations have been a thorny problem with Bitcoin's configuration."

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