ZoneBitcoin EditorialMore and more of African cryptocurrencies make their appearances regularly to the delight of crypto-enthusiasts on the continent. We can clearly see that bitcoin is a term increasingly sought after by Africans. Likewise, we know that the ecosystem blokchain in Africa is always denser. Even more than a trend, it is even seen as a political tool of emancipation if we take the case of Zambacoin. But this interest in bitcoin does not translate into adoption of the cryptocurrency either.
In addition, once again, let's stop talking about Africa as a single entity. Even within the continent, many countries differ in their enthusiasm for and use of bitcoin. We know very well that in South Africa, Kenya and Nigeria, bitcoin is widely used. These three countries also serve as real technological hubs in this area.
However, we know that in certain countries (and in particular French-speaking countries), such as Ivory Coast or Senegal, bitcoin is still in its infancy.
Mobile banking as a barrier to the use of cryptocurrencies?
Before going any further, let's remember this fact: The continent has more than 1,2 billion inhabitants and has more than 50% of the world's mobile money services. Mobile money is truly part of the daily lives of Africans. It is a fact.
We are therefore entitled to ask ourselves why more massive adoption is slow in Africa, given that we know how beneficial this could be. After all, for several experts, it is even Africa that could benefit more from blockchain technology.
So, let's ask ourselves the question again; Why are we lagging behind in Africa when it comes to cryptocurrencies?
This may seem paradoxical, but perhaps what is slowing down the use and mass adoption of cryptocurrencies is the mobile money. For more than a decade now, Africans – ahead of the rest of the world – have been using their phones to pay bills, send and receive money.
This may seem anecdotal, but it could explain a lot. Cryptocurrency in Africa must resolve psychological and cultural barriers. In fact, for the rest of the world, using cryptocurrencies is so much faster, easier and cheaper than traditional money.
However, in Africa, mobile money has exactly the same advantages and surpasses bitcoin in efficiency. Indeed, among the advantages of mobile money, we can cite three:
- Sending or receiving money in moile money does not require an internet connection. You must have internet to send/receive cryptocurrencies.
- You can use mobile money even with a basic, old generation phone. You need a (powerful) smartphone to use cryptocurrencies.
- No fear of hacking or falling prices with mobile money. The cryptocurrency market is entirely volatile.
So, faced with these arguments, how can you argue in favor of the use of bitcoin? Because in the end, these three arguments are lesser compared to the other benefits of cryptocurrency in Africa. Really. And, they are even challenges linked to the development and growth of the continent that blockchain could solve. This is why some people continue to fight.
Beating mobile money at its own game
Thus, we see new fintech startups even emerging. For example, the company Cointext – which I personally find great is a wallet service that does not require an internet connection. With Cointext, you can therefore send or receive bitcoins (bitcoin cash BCH) by SMS – just like mobile money.
It is therefore, for example, a fantastic prospect for Africans who do not need to disrupt their payment habits.
The problem? Because there is always a catch… It is that the service is only available in South Africa at the moment. Likewise, perhaps due to lack of resources and communication, the service does not have many users.
Bringing cryptocurrencies into everyday life
Yes, it seems that the royal road for the more or less massive adoption of cryptocurrencies by Africans should be done smoothly.
Moreover, according to the GSM Association, there will be 725 million mobile subscribers in Africa by 2020. These are potential customers who could link mobile money to cryptocurrencies.
Cryptocurrency scams and volatility in Africa terrify newbies
Here, you should know that this is a fact shared by the entire world population. Whether Americans or Vietnamese, those who still fear the use of cryptocurrencies are afraid of it. Yes, fear, quite simply, and Africans are not spared either, of course.
A series of bitcoin-related scams have not helped the cause of cryptocurrency at all. Media headlines have shown and exposed the flaws of bitcoin. In Africa too, deceptions have not failed to alert the novice. We remember in Uganda, for example, that thousands of people were victims of a number of Ponzi schemes including the D9 club, which promised to pay members monthly in BTC.
For example, the D9 club (and the site still exists!) pretended to be a serious sports investment company. The company promised members weekly bitcoin payouts for an initial investment of between $250 and $2. Remember that these are enormous sums for Ugandans. All these scams give a very bad image of cryptocurrencies in Africa… The blockchain developer and expert in new technologies Chimezie Chuta also talks about it on his blog.
The result? The Ugandan government has decided to tackle it and legislate on the subject. Which is not a bad thing in itself, of course.
Bernard Parah, a young entrepreneur from Lagos, Nigeria, recognizes this challenge and like a good entrepreneur, he jumped at this opportunity. He founded Bitnob , a platform that allows Africans to purchase vouchers. They can then transfer them into BTC without having to follow KYC procedures. This type of initiative is indeed excellent for pushing for the mass adoption of bitcoin in Africa.
I remind you here that very often, people abandon the use of a cryptocurrency service as soon as they have to enter their personal information. This can be explained for several reasons but the one that stands out first is the fact that in many countries, bitcoin is banned.
Why should Africa still persist in the use of cryptocurrencies?
By way of conclusion, I want to echo the optimism that is implied behind the enthusiasm of many Africans for cryptocurrencies.
Cryptocurrencies in Africa could solve many challenges that are still significant when it comes to financial inclusion. It is certainly an unstoppable lever for finance and other areas. Likewise, I would like to point out that even more than cryptocurrencies, it is blockchain technology that could have a very big impact on the development of the continent.
To the wise, I want to say…
And you? What do you think about adopting cryptocurrency in Africa ? Let me know in the comments section below 😉
