Topic: [2017-04-17]Bitcoin in Africa: Insights from the Continent’s Biggest Bitcoin Exc (Read 288 times)

used correctly like how? and saved from what exactly?
the main problem with Africa is that their countries are ridden with debt and are postmodern colonies
that is they are not colonized like , say , India in 19th century but are enslaved through IMF and banking
they were given credits to , for example , build infrastructure like roads , airports , stadiums etc. and the contracts were executed by the western companies
so the latter got their money back already and african countries are left with insurmountable debts that they will never be able to pay off
now they have to sell their natural resources , diamonds etc. just to be able to pay the interest
for the vast majority of african people bitcoin is something new and I don't see them rushing to buy bitcoin while they barely have enough money for their day to day expenses
there were attempts to create a micro transaction system based on cryptocurrencies and several ponzis ( like Mavrodi's pyramid) that used bitcoin
other than that the market is pretty virginal
this particular business bashes the bankers and says all the right words ... until you realize that their exchange is using banks as the means to withdraw money , oh the irony

The problem here is though, with no disrespect intended, a lot of those people in the 80 percent do not even have access to the internet, likely doesn't know what bank transfers and what the banking system involves.

I haven't seen exact statistics, but I definitely think you make the assumption that there are as many bank accounts in Africa as there are bitcoin wallets. Not that far-fetched, but will need exact numbers to confirm.

I believe that Africans just prefer using crypto-currency, they can avoid the hassle of setting up a bank account and wait ages for their application to get approved, and instead they just grab their wallet address and bam, it's solved.

- Sorry for necroposting, it was too interesting a subject to avoid, and can't believe it didn't get posts when it was posted.

This actually not surprise to the bitcoin ethusiasm mate sorry do not be offend since year 2017 if I am not mistaken during the all time high of bitcoun in the market people in the africa is continue yo accept and adopt bitcoin as new form of money or currency.african government legalised bitcoin to their country to help poor people know how to know use intenet  to help them to get decent source of income or job.

Agreed.

Africa as a crypto continent has often been overlooked and ignored due to the other major players in crypto-currency (eg, Japan, Korea, Singapore), but they've had their fair share of development.

The finance industry in Africa has been completely changed by blockchain technology and we can see a lot of interesting changes in the system due to this new tech.

Regarding Luno, what do you expect? No mainstream bitcoin wallet (eg, Coinbase) would just let customers offer as little details as possible and avoid KYC and AML functions, unfortunately, crypto still requires a bridge into the regular world, which is a pretty outdated view a lot of companies have

There are basically very little we can do about the on-ramp and off-ramp onto Bitcoin, when it comes down to fiat currencies. The moment when legal third party services touch fiat currencies, they have to work through the Banking system.

I think transferring money between Luno accounts can be a lot cheaper for people in Africa, once the money is deposited onto their platform. Banks and money transmitters, take a big chunk of the money that are transferred between people, so doing this through Luno.com would be a lot cheaper and faster.

I agree with you that a lot of BS are being published and distributed via Social media platforms, but I think Luno's attack on Banks are justified, even if they are forced to work with them to handle fiat. 

You do not have to use a Bank to deposit coins externally to Luno and when you do Bitcoin payments from their platform. 

I am tired of this bullshit PR stunts, seriously everything we read nowadays are paid promotional articles.
The guy is openly criticizing the banks, how they are slow, expensive, unreliable...all the menu, and then, what a surprise, the only way to purchase BTC from their exchange is ...via a bank!

Let me quote the FAQ page again:


So if you don't have an evil bank account, you can use their revolutionary exchange to send receive and store bitcoin..the same things the bitcoin client does, and when it comes to storing it is 1000x times safer.
Yeah it might be a great exchange, it might be useful for some, but don't start with these marketing tricks about the revolutionary system when you're so firmly planted in the old system an earthquake won't move you a millimeter.

Seriously we're trying to change the system with those guys that will say anything just to earn another client? Then it's another lost opportunity.

And yeah, I'm starting to dislike almost everything about the so-called bitcoin news.
When the numbers are not wrong, when the guy is not outright lying, when it's not a paid shilling article I come across some that we're written 4 years ago and republished as new news. The whole environment is getting more toxic each day, resembling exactly what poeple criticize about mainstream media and banks.

I do not understand your animosity towards this guy and the service they offer. The fact that Luno is the largest Bitcoin exchange in Africa speaks for it self. The exposure to the European market is strategic, because it adds liquidity to the exchange and also opportunities for the African people to do cheap inter-continental transfers via Luno's to these countries. 

I travel into Africa a lot for my work and I have used Luno on occasions and I can highly recommend their service, because it is super easy to use.

Let's applaud the service for their efforts to bring Bitcoin to Africa and to expose them to capital from other countries.   

bitcoin can save Africa if used correctly

From their own website help page:

Yeah, the same potential I've been hearing about since 2013 and yet ....nothing.

Look at these maps:
April 2013
https://coinmap.org/#/world/18.97902595/37.35351563/3
April 2015
https://coinmap.org/#/world/18.97902595/37.35351563/3
April 2019
https://coinmap.org/#/world/18.97902595/37.35351563/3

The way things are going, it will be April 2999 when finally that untapped potential will ...be tapped.

Africa is considered as the new frontier for Bitcoin and rightly so there is a huge market all waiting for Bitcoin here to tap. With many countries suffering from unimaginable inflation rates (sometimes running more than a thousand rate) and many governments seem to be inclined to be printing more paper money to temporarily fix problems, the state is really set for more adoption of Bitcoin. Of course, nothing will happen overnight as there are many places that are not yet using modern technologies but eventually as time goes on changes can be coming their way.

I am expecting the continental Africa to be contributing a lot to the growth of Bitcoin, notwithstanding that we can hear some governments banning the use and trade of Bitcoin. No question, the potential for expansion is very visible in Africa. I am also wishing that they tie up Bitcoin with tourism which I know can soften the strong stand of many politicians in this continent.

Awesome post although a bit old....

The scary thing is there are already 3 million + active bitcoin wallets and growing in South Africa.

• The population is hedging against the rand to the dollar.
  Trying to beat inflation of 10%.
  0 tax at the moment  

The current state of Bitcoin in South Africa is summed up here. - https://www.sashares.co.za/bitcoin-to-rand/

Bitcoin adoption is sky rocketing in Africa - do watch this space.

Bitcoin in Africa: Insights from the Continent’s Biggest Bitcoin Exchange
Isn’t it absurd that nearly 326 million people representing 80% of the adult population in Africa do not have access to bank accounts? This wretched situation denies countless of people financial freedom in the so-called dark continent. Bureaucratic tenors and economic exclusion inter alia have paved the way for the current phenomenon.

Last year a study of 10 African nations with unusual inflationary ratio had South Sudan registering an unimaginable inflation rate of 295 percent. Egypt had the slightest with 12.30 percent. African governments continue to plunder the riches of the African people through Inflation. This makes it considerably insurmountable for individuals to conserve their resources.

Moreover, public sector borrowing has crowded out the efficient private sector that can put credit to good use. The IMF estimates that averagely credit to the private sector is estimated at 30 percent of GDP in Sub-Sahara Africa.


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CCN spoke to Werner van Rooyen, Head of Business Development and Growth at Luno, the biggest Bitcoin exchange in Africa about how Bitcoin and cryptocurrencies are naturally poised to offer Africans financial inclusion.

CCN: Has Bitcoin anything to offer Africa?

Werner van Rooyen: Absolutely. There is a huge potential for Bitcoin in Africa. Many Africans could move straight to a cryptocurrency, like Bitcoin, or a bank of the future, such as Luno. Much of the existing financial infrastructure is inefficient: banks and branches are expensive, currency transfers can often be expensive and slow and most of the developing world is still unbanked.

There is the potential for Africans to leapfrog some of the existing financial services, in the same way, that many Africans skipped the part of owning a cumbersome and expensive land line and went straight to owning a mobile phone.

CCN: Most African currencies are reeking of inflation, does this make Bitcoin attractive as a store of value to Africans?

WvR: Bitcoin has proven to be the best-performing currency in the world in 2016. I believe more investors in high-inflation countries are looking at alternative asset classes, things like gold or Bitcoin.

Bitcoin has been found to be largely uncorrelated to other asset classes. With most asset classes, there is a correlation (or inverse correlation), like when a country’s stock market goes down, the currency’s exchange rate usually also follows, same for the housing market. Bitcoin is largely uncorrelated, meaning it is becoming an attractive alternative to many investors.

CCN: What do you make of some African governments tagging Bitcoin as a tool for terrorism and money laundering?

I think this is mostly fueled by incorrect data, click-driven media hype and lack of understanding about Bitcoin. Firstly, I should say that the biggest facilitator of organised crime, including money laundering and terror financing, is cold hard cash.

Many other modern inventions, such as the Internet, Twitter, cars and cellphones, are currently being used to facilitate crime. It doesn’t mean that we should shut these technological advances down (I doubt anyone is seriously proposing it), but rather that the good that comes with it outweighs the bad.

Lastly, there is very little proof that Bitcoin is currently being used for these nefarious purposes. Remember: Bitcoin is only pseudo-anonymous: all Bitcoin transactions ever conducted are recorded in the Blockchain.

Studies by the UK government looking into the best channels for laundering money has consistently found the risk of Bitcoin being used as very low.

CCN: Adoption in Africa is irritatingly slow. How do we push penetration?

WvR: Education and user experience. At Luno, we’re doing a lot to tackle this. Our aim is to make Luno the easiest place to buy, sell and learn about Bitcoin. Something which is no trivial task, but we’re seeing fantastic growth in Africa, especially for our mobile wallet. We’ve also created a Learning Portal to help new people with some basic concepts about Bitcoin.

CCN: Do you think Africans will finally embrace Bitcoin?

WvR: I don’t think they will, I think they already have! We are seeing fantastic adoption in places like South Africa and Nigeria and I’m sure it will ripple to other African nations too.

CCN: What makes Bitcoin expensive in Africa than elsewhere?

WvR: Bitcoin is a very liquid instrument: it’s easy to move around the world. This, in theory, means that it can and will trade at roughly the same exchange rate, wherever it is available.

Obviously, there are many factors at play, but since the price is determined by supply and demand, it means that in some places where the demand is low, it may trade at a lower price (and vice versa).

Another issue is connectivity: to transact in Bitcoin, you need an Internet connection and ideally a smartphone. Many places are still underserved by the telcos, but this is changing fast. The price of smartphones is also continuously getting cheaper.

CCN: Could you paint a picture of the future of Bitcoin in Africa?

WvR: It’s really too soon to tell, but what we’re seeing already today is really fantastic and I believe Bitcoin has a lot of potential in emerging markets in Africa and abroad.
https://www.cryptocoinsnews.com/bitcoin-africa-insights-continents-biggest/