Guellord MbusaOver the past two years, bitcoin (BTC) has gained ground on the African continent. The establishment of the sangocoin The Central African Republic certainly trails other countries in adopting bitcoin.
Rwanda, this small country in Central Africa which aims to be one of the largest technological hubs in Africa, does not want to miss out on this revolution.
After the phase of adoption and popularization of bitcoin (BTC) and its bitcoins, the country is already thinking about the creation of its own cryptocurrency. With significant advances in technology, Kigali has everything to become the second capital of cryptocurrencies in East Africa.
But first of all, let's return to the evolution of the adoption of bitcoin (BTC) on the African continent.
Brief history of bitcoin (BTC) adoption in Africa
The path to the adoption of bitcoin (BTC) and cryptocurrencies in general on the African continent was not easy. Some countries have engaged in a very hostile crusade against cryptoassets. Morocco and Algeria top the list of countries that have gone so far as to penalize the possession of cryptocurrencies. However, in recent years, restrictions have become less severe as blockchain gains ground. There are also more and more African cryptocurrencies intended for local populations.
After this harsh phase of criminalization of the use of cryptocurrencies, since September 2021 the situation has completely changed. All hostile countries have changed their tune on the subject. More and more authorities and the African people understand that bitcoin (BTC) is a safe haven and a shield against inflation and monetary instability. On the continent, Nigeria alongside Kenya occupy first place among countries with a large flow of bitcoin (BTC) transactions. Not long ago, if we had bet that the second country to adopt bitcoin as an official currency would be a country in Central Africa, there are few who would have put a single one of their Satoshis on the table.
Bitcoin adoption growing in Africa
After El Salvador, it is in the Central African Republic that bitcoin has taken up residence as the official currency with crypto sango. It is in fact the first MNBC (National Currency of Central Bank) implemented in Africa.
—> Read our article to find out how to invest in crypto sango.
On the evening of April 22, 2022, all the media were unanimously taken aback by the turn the country's monetary policy was taking. Despite pressure from the BEAC (Bank of Central African States), the Central African government adopted bitcoin (BTC) as an official currency alongside the CFA franc and legalized the use of cryptocurrencies.
🏦 The fight for financial inclusion on this continent where the majority of populations do not have bank accounts is a factor that favors the rapid adoption of cryptocurrencies.
If of all cryptocurrencies, the invention of Satoshi Nakamoto seems to be the most popular on the continent, this is because it has proven its ability to serve as a hedge againstinflation. Prowess which leads his supporters to describe him asor digital.
Will Kigali become East Africa's second bitcoin capital?
Kigali, the capital of the Republic of Rwanda is known to be the cleanest and ecological city on the continent. What people seem to ignore is that she also wants to be the technological crossroads of the Great Lakes region. To achieve this, the Rwandan authorities are sparing no effort. The speed with which all services in the capital were computerized; it now competes with Nairobi, the capital of its neighbor, Kenya, which is also the center of cryptocurrency exchanges in East Africa.
Numerous operations, although commonplace in the West, such as paying for a taxi bus by magnetic card, have been introduced in Kigali since 2011.
With the aim of making Rwanda the African Singapore,the Rwandan government had embarked on major five-year projects (ranging from 2000 to 2015) with the aim of setting up the basic ICT infrastructure, a fiber optic network in particular. Then to introduce services using these new technologies more quickly. These projects have allowed Rwanda to distance itself from its regional competitors through business creation and economic growth.
In the capital as throughout the national territory, technological innovations are not limited to the computerization of transport tickets. Today, they affect almost every aspect of daily life in Rwanda, from health and education to banking services.
Adoption and growing popularity of bitcoin (BTC)
The arrival of cryptoassets reinforces the financial inclusion that mobile money already promotes. The arrival of exchange platforms such as Yellow Card Rwanda, Electroneum, Paxful, or Binance Africa make it easier to buy and sell cryptocurrencies. Indeed, all these platforms work in partnership with the telecommunications company MTN Rwanda. This makes it easy to exchange your cryptocurrencies with your smartphone and send money outside the country without going through the bank.
Buy bitcoin in Africa always gets easier.
Initiatives such as that carried by the exchange platform PAXFUL effectively contribute to the democratization of bitcoin in the country. Indeed, PAXFUL wants to build 100 schools for the poorest African populations thanks to bitcoin (BTC) donations. After the first built in Senegal, it was in Rwanda that the second school was built.
Paxful is a peer-to-peer platform that allows you to buy bitcoin anywhere in the world, particularly in Africa. Many Rwandans use this service to obtain BTC.
In December 2018, Ray Youssef, CEO and co-founder of Paxful said in an interview with Bitcoin Magazine that the choice of location comes from the fact that the region radiates an aura of healing and forgiveness and therefore seems to be the natural place to start rebuilding the country.
It should be noted that the construction of these buildings of six primary classes and a nursery school cost a sum of $100 raised through bitcoin (BTC) donations.
Children study there for free and teachers are also paid through bitcoin (BTC) donations. Courses on cryptographic currencies are provided there to contribute to their democratization. This is a bit the idea pursued Binance Africa with its workshops and conferences.
Can bitcoin replace money transfer?
Rwanda has a population made up mainly of livestock breeders and farmers. Around 83% of the population live in rural areas far from financial institutions and do not have bank accounts. Although only a handful of the population is banked, money transfers are done via “Mobile Money” services. Concretely, this system is an electronic wallet which allows its holder via mobile telephony technologies to transfer money and/or credit from their user account to that of another account.
Upon its arrival in the country, the mobile telecommunications company MTN joined forces with the Commercial Bank of Rwanda (I&M Bank Rwanda) to launch a mobile banking service.
It allows thousands of subscribers to transfer money from one account to another, withdraw cash and pay their electricity and TV bills using SMS.
In view of this technological progress which distinguishes Rwanda from its Central African neighbors, it is clearly visible that Rwandan users do not have much difficulty adapting to cryptographic currencies and blockchain itself.
We can quote the service Machankura which allows owners of a simple cell phone (without internet connection) to be able to send and receive bitcoin.
Legalization and creation of its own cryptocurrency for Rwanda
The Republic of Rwanda does not have any law regulating cryptocurrencies. Not for the moment. Even if cryptocurrencies are no longer illegal in the country as in 2018, the government nevertheless declines all responsibility in the event of litigation in the area.
Rwanda has yet to enact laws specifically regulating digital currency. In order to enact digital currency regulation, there would need to be a new financial policy in which the government takes full responsibility for oversight, circulation, and value.
Ironically, since 2019, the National Bank of Rwanda (NBR) has been exploring the development and issuance of its own digital currency to minimize the country's concerns about anonymity, stability and regulation.
For the power of Kigali, only one central bank digital currency (MNBC central bank digital currency) regulated and developed by the government would promote economic activities, including online transactions.
3 years ago, Peace Masozera Uwase, general director of financial stability at the NBK, confided during his interview with Bloomberg that there were still concerns about the exact way to convert the entire currency into digital format , has the way of distributing it and the speed with which its operations should be carried out. In addition, she promised that the country will take part as soon as it is ready. It’s difficult to say today where the project is…
Final word on the Bitcoin situation in Rwanda
Regardless, the adoption of cryptocurrencies and particularly bitcoin (BTC) in Rwanda is occurring at an accelerated speed. Thanks to the technological advances that the country has, and the “Mobile money” electronic payment systems to which local populations are accustomed, the use of cryptoassets does not cause many problems. Likewise, it is always easier tobuy bitcoin with CFA franc for example.
With the support of vast democratization campaigns in the country, Kigali is on the right track to becoming the second capital of cryptocurrencies and bitcoin (BTC) after Nairobi that of its neighbor Kenya.
👓 Read other articles:
- —->> Buy cryptocurrencies in Africa
- —->> Sango crypto from Central Africa: Everything you need to know
- —->> Cryptocurrencies are the ultimate solution for the development of Africa…
- —->> Buy bitcoin with CFA Franc.
- Project Mano: How Bitcoin Could Strengthen Ethiopia's Economy
Note: No financial advice is given in this or any other article on this blog. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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