Topic: Why are Africans not using cryptocurrencies? (Read 610 times)
There are several factors that currently prevent adoption on the African continent and I will mention just 1 and in this case it is internal and external infrastructure. How can we think about investing in our financial prosperity, leaving aside basic needs like food and family? I am not mentioning this in general, but the African population is concerned and addressing their basic needs.(Hunger)
Africa is a developing continent, and despite the world leading search interest for cryptos, the continent still lags behind the rest of the globe in everyday cryptocurrency use and adoption. The continent is home to over 50 percent of the world’s mobile money services, but while the use of internet has risen exponentially in the past twenty years, users from Africa account for just ten percent of the global total. I can personally attest to the challenge of internet connections across Africa. The connection is either poor, slow or even non-existent at times. At times, accessing internet on your handset for the mere purpose of communicating with people or even carrying out transactions becomes a challenge, and this is one of the reasons why most people in Africa are not as enthusiastic about cryptocurrencies.
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
Man, you have already stated the obvious reasons why Africans are yet to fully adopt cryptocurrency. As you have said let's live for that day!
Africa is a developing continent, and despite the world leading search interest for cryptos, the continent still lags behind the rest of the globe in everyday cryptocurrency use and adoption. The continent is home to over 50 percent of the world’s mobile money services, but while the use of internet has risen exponentially in the past twenty years, users from Africa account for just ten percent of the global total. I can personally attest to the challenge of internet connections across Africa. The connection is either poor, slow or even non-existent at times. At times, accessing internet on your handset for the mere purpose of communicating with people or even carrying out transactions becomes a challenge, and this is one of the reasons why most people in Africa are not as enthusiastic about cryptocurrencies.
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
It's not completly true, I know some projects that invest a lot in Africa. For example electroneum mining app, you can use their coin for recharge the credit on african mobile sim. I read also that in Zimbabwe they used crypto douring government failures as in Venezuela.
Relevant:
Africa is a developing continent, and despite the world leading search interest for cryptos, the continent still lags behind the rest of the globe in everyday cryptocurrency use and adoption. The continent is home to over 50 percent of the world’s mobile money services, but while the use of internet has risen exponentially in the past twenty years, users from Africa account for just ten percent of the global total. I can personally attest to the challenge of internet connections across Africa. The connection is either poor, slow or even non-existent at times. At times, accessing internet on your handset for the mere purpose of communicating with people or even carrying out transactions becomes a challenge, and this is one of the reasons why most people in Africa are not as enthusiastic about cryptocurrencies.
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
Some governments have been skeptical and reserved and, in some cases, unreceptive to the use of digital currencies. Countries such as Zimbabwe and Namibia have reportedly begun with a hard stance, and in Kenya, the central bank of Kenya has restricted the use of digital currencies because of their unregulated nature. Nigeria’s Central Bank has rejected the use of cryptocurrencies claiming that its citizens will be at risk of fraudulent schemes, but it is yet to release a whitepaper on their take.
https://www.dailymaverick.co.za/article/2019-04-08-blockchain-and-cryptocurrency-regulation-in-africa/
Another factor that holds back cryptocurrency use in Africa is that very often you will see Initial Coin Offerings targeting countries from literally all other continents BUT Africa. In cases where African countries are receptive to the idea of digital currency, most governments are slow with its adoption mainly because they fear for their young citizens or due to the crop of old leaders who cannot picture a future without paper cash.
https://www.africa.com/cryptocurrency-regulation-africa-slowly-picking-up-the-pace/
Adoption of cryptocurrencies is a work in progress for most African nations, but with time it could become the most used method of payment. I live for that day!
I won't say that crypto is not known yet in Africa, previously I came across images/video clip
of bitcoin ATM in Africa https://youtu.be/du2v8JjFQdk which I so believe it will come to a full existence
Well, my opinion might slightly differ as most African countries are adopting the usage of blockchain technology. It is a big relief for boardless transfer which has been a huge issue in the African region. Even though most governments are not in support of this global revolution, citizens are using it on daily activities and blockchain technology will speed the process of the African continent to catch up with others.
i have visited africa a few times
africans are very involve with crypto. but they are very wary of two main things
1. westerner based economies
2. the fee's to start/use/exit a crypto
many foolish and wishful thinkers think bitcoin is a big thing in africa. but its not. the tx fee alone is more than an hours labour for an african.
many fools then try to think LN is the solution. but again LN is not bitcoin but requires locking up funds and 2 tx fee's just to use LN as a system and btc as a exit currency off that system.
many africans are looking at cheaper fee altcoins in conjunction with LN but have very much moved off the idea of bitcoin and bitcoin in conjunction with LN
.. for now though they know and trust and are used to mpesa which has done them good and the fee's are acceptable so its a struggle to try selling them on the idea of btc and even LN with btc backed funds
i foresee africa going the altcoin route and eventually if LN ever(i doubt) fixes its flaws would use LN as the tool for interpersonal swaps.
...
another thought
the other aspect of what gives a crypto an underlying value is the cost of its creation(mining) pos coins have no underlying cost so can easily become dead coins. where as minable coins hve cost involve which makes the coin harder to zero out.
same as real mineral gold mining. if it cost $900 to mine an ounce.. add speculative value on top and market price would be $1.1k-1.5k.. if gold cost $10 to mine with s spoon and coffee filter in your backyard. it may sell for $15. but still worth more than zero as it has a purpose too
africa is not the right climate for mining based crypto's so them starting one of their own wont be very good. so they are very wary of this and of the fact that they dont like using other peoples currencies if they can avoid it/if not benefit to them.
they see pos altcoins as too risky. and more chance of volatility/project death. so if they were to use one it would be a minable coin with low fee onchain and also longevity prospects due too world wide accessability and real world purpose
africans are very involve with crypto. but they are very wary of two main things
1. westerner based economies
2. the fee's to start/use/exit a crypto
many foolish and wishful thinkers think bitcoin is a big thing in africa. but its not. the tx fee alone is more than an hours labour for an african.
many fools then try to think LN is the solution. but again LN is not bitcoin but requires locking up funds and 2 tx fee's just to use LN as a system and btc as a exit currency off that system.
many africans are looking at cheaper fee altcoins in conjunction with LN but have very much moved off the idea of bitcoin and bitcoin in conjunction with LN
.. for now though they know and trust and are used to mpesa which has done them good and the fee's are acceptable so its a struggle to try selling them on the idea of btc and even LN with btc backed funds
i foresee africa going the altcoin route and eventually if LN ever(i doubt) fixes its flaws would use LN as the tool for interpersonal swaps.
...
another thought
the other aspect of what gives a crypto an underlying value is the cost of its creation(mining) pos coins have no underlying cost so can easily become dead coins. where as minable coins hve cost involve which makes the coin harder to zero out.
same as real mineral gold mining. if it cost $900 to mine an ounce.. add speculative value on top and market price would be $1.1k-1.5k.. if gold cost $10 to mine with s spoon and coffee filter in your backyard. it may sell for $15. but still worth more than zero as it has a purpose too
africa is not the right climate for mining based crypto's so them starting one of their own wont be very good. so they are very wary of this and of the fact that they dont like using other peoples currencies if they can avoid it/if not benefit to them.
they see pos altcoins as too risky. and more chance of volatility/project death. so if they were to use one it would be a minable coin with low fee onchain and also longevity prospects due too world wide accessability and real world purpose
Well I think, that crypto isn't more widely spread in Africa than what it is in other parts of the world because Africa doesn't seem to have the same items that are associated with crypto and things of that nature. I.E. computers, internet, mobile phones, technology so on and so forth. There are some places where it may be up to speed but there might be some places not so much. Also the mass adoption of crypto will never be if people don't even know what it is. People in Africa especially the younger generation have to start talking about it and implementing technology to where they may turn around their current state in Africa.
I think that Africa is not the only continent that is caught in this kind of discussion. But to look inward, the awareness is getting high lately as many African elites are now investing and using digital currency. The African society is now being digital with even the laws against money laundering and carrying cash physically. With time it will get there with the cryptocurrency technology.
Africans are using cryptocurrencies. - Some used are: Bitcoin, Litecoin, XRP, Dash, Lisk, Smartcash and Monero
Many Africans are also involved in the creation and promotion of cryptocurrency. Low labor costs and plenty of potential workers make many developing countries popular for hiring labor to develop new virtual products.
Unfortunately developing countries are also very prone to crypto ponzi scams.
Lack of regulation, lack of information and desperation for fast gain make developing countries targets for ponzi schemes.
Many Africans are also involved in the creation and promotion of cryptocurrency. Low labor costs and plenty of potential workers make many developing countries popular for hiring labor to develop new virtual products.
Unfortunately developing countries are also very prone to crypto ponzi scams.
Lack of regulation, lack of information and desperation for fast gain make developing countries targets for ponzi schemes.
Well I think, that crypto isn't more widely spread in Africa than what it is in other parts of the world because Africa doesn't seem to have the same items that are associated with crypto and things of that nature. I.E. computers, internet, mobile phones, technology so on and so forth. There are some places where it may be up to speed but there might be some places not so much. Also the mass adoption of crypto will never be if people don't even know what it is. People in Africa especially the younger generation have to start talking about it and implementing technology to where they may turn around their current state in Africa.
One other factor that might influence the use of Crypto currencies in Africa are the already established digital payment option that are used, namely : M-Pesa.
Vodafone now offers M-Pesa services in 10 countries: Albania, the Democratic Republic of Congo, Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania and Tanzania. Source : https://www.vodafone.com/what-we-do/services/m-pesa
https://www.researchgate.net/figure/Summary-Statistics-of-Transactions-at-M-Pesa-Agents_tbl1_228292847
So, Bitcoin and other Crypto currencies are competing with a already established digital payment option that are widely used. It also does not require you to do this on expensive smart phones and it is very fast.
When you introduce a new payment option, people should understand why the new "decentralized" option is better than what they currently have in a centralized payment option and nobody are educating them on those facts.
Vodafone now offers M-Pesa services in 10 countries: Albania, the Democratic Republic of Congo, Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania and Tanzania. Source : https://www.vodafone.com/what-we-do/services/m-pesa
https://www.researchgate.net/figure/Summary-Statistics-of-Transactions-at-M-Pesa-Agents_tbl1_228292847
So, Bitcoin and other Crypto currencies are competing with a already established digital payment option that are widely used. It also does not require you to do this on expensive smart phones and it is very fast.
When you introduce a new payment option, people should understand why the new "decentralized" option is better than what they currently have in a centralized payment option and nobody are educating them on those facts.
The main reason africa doesn't use cryptocurrencies is because of the DIGITAL DIVIDE
No matter what sources you find on how many people use mobile phones there, you have no clue how
bad certain things are in most of Africa until you visit it. I know it sounds strange and you won't believe
me unless you see with your eyes. The number of smartphones is very low as well as the number of workstations,
however africa is growing and I think it's going towards the right direction
In terms of Digital Divide, Africa is the most disconnected worldwide. I recommend you to visit any of the
red locations on the map. There is one with 97% of its population offline
No matter what sources you find on how many people use mobile phones there, you have no clue how
bad certain things are in most of Africa until you visit it. I know it sounds strange and you won't believe
me unless you see with your eyes. The number of smartphones is very low as well as the number of workstations,
however africa is growing and I think it's going towards the right direction
In terms of Digital Divide, Africa is the most disconnected worldwide. I recommend you to visit any of the
red locations on the map. There is one with 97% of its population offline
+1 here. You're not going to be able to use Crypto if you're unable to use the internet.
You're also not going to be able to use the traditional methods of transfer that are taken for granted in the US --> Look at Venmo, Cashapp, Zelle, etc.
Africans can only begin to use Crypto when they have heap, free, and plentiful internet. There's no other way for them to use this tech without it. Now we can sit here all day long and debate if you can use 'crypto usb sticks' or something along those lines.
But we have to push internet to them first.
You're also not going to be able to use the traditional methods of transfer that are taken for granted in the US --> Look at Venmo, Cashapp, Zelle, etc.
Africans can only begin to use Crypto when they have heap, free, and plentiful internet. There's no other way for them to use this tech without it. Now we can sit here all day long and debate if you can use 'crypto usb sticks' or something along those lines.
But we have to push internet to them first.
While Internet is one thing, the awareness and adoption is another.
For instance, Internet access in my country (not Africa) is plentiful but then, cryptocurrency adoption remains low. Only 3 exchanges were licensed so far.
However, we're slowly opening up to e-Wallets.
Strange. Can you provide the source of the following?
"The continent is home to over 50 percent of the world’s mobile money services"
This percentage looks quite exaggerated. Africa is quite behind other continents when it comes to the usage of the internet (even in 2019):
"The continent is home to over 50 percent of the world’s mobile money services"
This percentage looks quite exaggerated. Africa is quite behind other continents when it comes to the usage of the internet (even in 2019):
+1 here. You're not going to be able to use Crypto if you're unable to use the internet.
You're also not going to be able to use the traditional methods of transfer that are taken for granted in the US --> Look at Venmo, Cashapp, Zelle, etc.
Africans can only begin to use Crypto when they have heap, free, and plentiful internet. There's no other way for them to use this tech without it. Now we can sit here all day long and debate if you can use 'crypto usb sticks' or something along those lines.
But we have to push internet to them first.
africans using bitcoin is super small. not only due to internet. but also the transaction fee
africans using cryptocurrency is a little more. still limited by internet. but not so much by transaction fee
however due to the ease of SMS africans have a high use of 'digital' currency such as M-pesa requiring no internet
everyone knows i de-test LN due to it not being a blockchain and having to vault up and eventually custodian/co-partner authority).
but a niche that LN can fill is that when someone locks up their bitcoin asset for a month. they can be given a open session LN UTXO of msats which they can then SMS directly with their channel partner during the month, without needing the internet.
the only thing they need to do is SMS a agreed close session with a 'factory'/watchtower(3rd party) to close the session and re-issue an open session (broadcast onchain).
though this means relying on a 3rd party to be custodian/manage the onchain stuff. the users can end up just SMSing payments without the need of the internet
but for emphasis the whole channel partner/custodian problems is my concern as i personally am a 'if you dont hold the only private key the funds are not yours alone'
that said m-pesa is where a phone company holds the real value and people are just telling the phone company who deserves what, and the phone company is the custodian. .. so it aint much of a change..
(m-pesa users dont actually own the value, they just have authority to choose where it goes)
LN 'factory' can distribute a central control of just 1 phone company to become hubs of many 'factory/watchtower' custodians
but its still not as secure/trusted/independent as real blockchain assets
again emphasis on the whole point of blockchains is independant asset ownership, which LN and 3rd parties do not offer
africans using cryptocurrency is a little more. still limited by internet. but not so much by transaction fee
however due to the ease of SMS africans have a high use of 'digital' currency such as M-pesa requiring no internet
everyone knows i de-test LN due to it not being a blockchain and having to vault up and eventually custodian/co-partner authority).
but a niche that LN can fill is that when someone locks up their bitcoin asset for a month. they can be given a open session LN UTXO of msats which they can then SMS directly with their channel partner during the month, without needing the internet.
the only thing they need to do is SMS a agreed close session with a 'factory'/watchtower(3rd party) to close the session and re-issue an open session (broadcast onchain).
though this means relying on a 3rd party to be custodian/manage the onchain stuff. the users can end up just SMSing payments without the need of the internet
but for emphasis the whole channel partner/custodian problems is my concern as i personally am a 'if you dont hold the only private key the funds are not yours alone'
that said m-pesa is where a phone company holds the real value and people are just telling the phone company who deserves what, and the phone company is the custodian. .. so it aint much of a change..
(m-pesa users dont actually own the value, they just have authority to choose where it goes)
LN 'factory' can distribute a central control of just 1 phone company to become hubs of many 'factory/watchtower' custodians
but its still not as secure/trusted/independent as real blockchain assets
again emphasis on the whole point of blockchains is independant asset ownership, which LN and 3rd parties do not offer
This is not the fact. There is not correlation between network connection or communication to cryptocurrency transaction. Yes, it is based on network but that is not the hindrance. The hindrance is as same everywhere in the globe about cryptocurrency. The fear of crash, bubble stories and lagging in legislation for usage and acceptance.
If you are generalizing Africa then this is not true however if you target specific parts of Africa such as West Africa then it is in fact correct. There are a lot of internet black spots in Africa because they do not have the infrastructure to accommodate internet.If we look at South Africa or even the north then its a completely different story as they have the capable infrastructure which is available to the masses. 
Perhaps the move to facilitate Bitcoin transactions over software controlled radio will help the spread of crypto in Africa.
The connection is either poor, slow or even non-existent at times. At times, accessing internet on your handset for the mere purpose of communicating with people or even carrying out transactions becomes a challenge, and this is one of the reasons why most people in Africa are not as enthusiastic about cryptocurrencies.
This is not the fact. There is not correlation between network connection or communication to cryptocurrency transaction. Yes, it is based on network but that is not the hindrance. The hindrance is as same everywhere in the globe about cryptocurrency. The fear of crash, bubble stories and lagging in legislation for usage and acceptance.
Africa as you rightly pointed is a developing continent. But saying they don't use cryptocurrencies is not entirely true. Over the last years, some African countries, Nigeria for instance has shown a continued support for cryptocurrencies especially Bitcoin. Even though there are few services here which accept bitcoin. The slow growth rate of crypto adoption is also attributed to the environment. There's a gross lack of facilities that will facilitate the day-to-day usage of Bitcoin.
I think the caption is not really the way it should be. If it appears the way it is, it means every individual citizen of a particular continent is cryptocurrency and we know that is not true. It will become a fallacy to agree to that because at least if it is on record that all youths in that continent use it, then what about the aged?
In other words, I think every continent has its issues as per the usage of cryptocurrency.
In other words, I think every continent has its issues as per the usage of cryptocurrency.
Jump to: