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The State of Bitcoin in Cameroon

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bitcoin in cameroon

The Republic of Cameroon has a small bitcoin community compared to its more established African counterparts in Kenya, South Africa, and Nigeria. In this article, you will be introduced to the state of bitcoin in Cameroon including its legal status and the startups that are enabling Cameroonians possibility to invest in bitcoin.

Is Bitcoin Legal in Cameroon?

Currently, bitcoin and other digital currencies have no legal status in Cameroon. The central bank of the six-nation monetary union, CEMAC, has not yet issued any specific guidance on the use of bitcoin within its borders.

The central bank of CEMAC did create a legal framework for electronic money in 2001. In its framework titled ‘Regulation No. 01/11-CEMAC/UMAC/CM – On the Use of Electronic Money’, the regulator outlines how electronic money can be used to bank the underbanked populations in the region. However, there is no mention of bitcoin or other decentralized cryptocurrencies in the framework.

Cameroonians can therefore buy, hold and use bitcoin as they please. At least, until any specific guidance on bitcoin will be issued.

While that is good news for bitcoin traders and investors, it means that bitcoin and blockchain startups do not fall under regulatory oversight, which can be an issue for consumers as they receive no protection but also for the startups themselves who are operating in a regulatory “no man’s land” without knowing whether regulation could come and stomp them out of business as it has been the case in Namibia, which recently banned bitcoin use in commerce.

Cameroon’s government is not adverse to Digital Currency

What is encouraging for Cameroon’s bitcoin community is that the Cameroonian government has previously trialled a bitcoin-like digital currency called Trest in a test conducted in 2015 with the help of Indian IT company Trestor.

Antoine De Padoue, president of RDPF KUMZE, Cameroon’s minority opposition party at the time, told IANS:

“The results were excellent. We enrolled 500 people between the ages of 15 and 35 from a small economically-knit community. We asked them to use ‘Trest’ as their default method of payment for 30 days. In short, we artificially created a Trest-based micro-economy. People were able to comprehend and understand this very new method of payment. They were excited and started improvising their own uses within the first five days of the pilot. We achieved quantifiable efficiency gains and the benefits far outweighed the negatives.”

This shows that Cameroon is very open to mobile payment innovation. It could, therefore, become a fruitful breeding ground for cryptocurrency solutions especially given the country’s low number of individuals with bank accounts but high mobile phone penetration.

The government even looked at bitcoin before conducting this trial with Trestor but found that:

“Bitcoin’s transaction fee to the user was low but the real cost to the network was unimaginable. That was a deal breaker for us. We couldn’t believe the Bitcoin network consumed about $18.95 of electricity to process a single transaction,” according to De Padoue.

Bitcoin Startups in Cameroon

Bitcoin-related startups in Cameroon are currently limited to bitcoin exchange platforms. While global exchanges such as LocalBitcoins operate in the country, there are also a few local e-money platforms that enable users to buy bitcoin online.

E-money services providers that sell bitcoin include platforms such as VirtaCash Ltd and Achatpmbtc. However, neither bestow a lot of confidence in users due to the unprofessional appearance of their websites, not listing live exchanges rates, and not stating who is operating the platforms.

Cameroonians can also use CamerBitcoins to purchase bitcoin locally. However, the startup has been running a bitcoin “investment scheme” until recently that looked a lot like a bitcoin HYIP, which does not bode for the company’s image as all bitcoin HYIPs are known to be scams.

The more secure option for Cameroonians when it comes to transacting in bitcoin seems to be the use of international exchanges or to deal directly with individuals in the bitcoin community that they know and trust.

Cameroonians can also use BitRefill to top up their mobile minutes using bitcoin.

Bitcoin’s Potential Impact on Cameroon

In a country, where the minimum wage is $80 per month, a growing cryptocurrency economy could potentially lead to the creation of more wealth for Cameroonians. Whether it is through the investment in bitcoin and other cryptocurrencies, through the receiving of low-cost money transfers or through the development of new bitcoin and blockchain solutions, cryptocurrencies could have a much more positive impact in a country like Cameroon than in the developed world.

A special thanks goes to Mireille Kooh of Afrik Digital Marketplace for providing BitcoinAfrica.io with insight and information about the bitcoin community in Cameroon. You can reach out to her on her blog if you want to learn more about the fintech and bitcoin ecosystem in Cameroon. 

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Almost a Quarter of High-Tech Consumers in South Africa Now Own Cryptocurrency

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High-Tech Consumers in South Africa

A new study titled “Digital Lifestyle Measure report” conducted by MBIT found that 23 percent of high-tech consumers in South Africa own at least one cryptocurrency, with bitcoin being the most common holding. 

New Report Shows High-Tech Consumers Hold Crypto

In the”Digital Lifestyle Measure report” report, each level of tech consumer (high, medium, and low) was grouped according to DM segmentation. A high-tech consumer is identified and tagged as a “DLM5 consumer”, and for the low-tech consumers, a “DLM1 consumer” was used. 

To place each of the participants in the right groups, the survey made use of a question and answer (Q&A) method. Each person was categorised according to how well they were able to answer the provided questions. The questions mostly focused on their private digital lifestyle and technological gadgets they own and can operate well.

The result of this survey shows that only six percent of the low-tech consumers (DLM 1) own crypto, while 23 percent of high tech consumers own cryptocurrencies. The remaining percentage was then shared in the order: DLM 2: seven percent, DLM 3: twelve percent, and DLM 4: eight percent.

cryptoThe report also stated that of the DML5 population, about 42 perfect of them are of the notion that cryptocurrencies are here to stay. Same goes for 30 percent of the DLM 4 consumers group.

Conversely, 41 percent of the low-tech consumers (DLM1 consumers) did not know what cryptocurrencies are all about, according to IOL

From the DLM 3 consumer group, about 34 percent of them cannot say what the future looks like for cryptocurrencies but 26 percent of them claimed cryptocurrencies to be the “future of financial transacting.”

The report has further shown that high tech consumers who are continually paying for something electronically, are more likely to buy crypto in the long run.

Based on the google trends data, South Africa currently has the highest levels of interest in bitcoin across the world. Hence, it should come as no surprise that tech-savvy South Africans are the ones investing in digital currencies and tokens. 

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Ecobank Report: Most African Regulators Are Taking a “Wait and See” Approach to Cryptocurrency Regulation

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African Regulators

While there has been a substantial increase in the adoption of cryptocurrencies in Africa compared to three years ago, there has been minimal effort from African countries to try and regulate cryptocurrencies despite their increased use in various African nations according to a new report by Ecobank.

Ecobank tracked “the current state of cryptocurrency regulation in all markets in Sub-Saharan Africa” through the regulatory responses that have been issued by central banks or financial regulators. In the report, the pan-African bank found that most African regulators are taking a “wait and see” approach when it comes to cryptocurrency regulation.

The report stated: “Many African governments and regulators recognise both the risks and the potential positive impacts of cryptocurrencies, and some also appreciate the difference between cryptocurrencies and the underlying blockchain technology. But they have been reticent in authorising cryptocurrency transactions, and mostly remain apprehensive about the potential risks. African countries appear to be looking to their neighbours to regulate and innovate first, and learn from their mistakes, rather than being the first mover.”

The reported noted that the main reason why African governments were being skeptical about licensing the use of cryptocurrencies was their citizens getting overexposed to cryptocurrency investments and there being a future crash that would cause a ripple effect in the broader economy.

African Regulators’ Stance

African RegulatorsOut of the 39 jurisdictions surveyed, more than 21 countries in the region are yet to make a public declaration on the use of cryptocurrencies.

So far, there have been three countries that have taken a stance on cryptocurrency. Namibia tops the list having banned the commercial use of digital currencies. However, South Africa and Swaziland are the only two countries in Sub-Saharan Africa that have adopted “a generally favourable and permissive stance, but without full legality”.

The remaining countries fall somewhere in between and “refuse” to directly regulate cryptocurrencies claiming that bitcoin and other digital currencies “operate in the grey area between legality and illegality” and have issued warnings to their citizens and investors against using or investing in them. The bank also noted that conversations regarding the speculative nature and instability of cryptocurrency prices have overshadowed their benefits and the potential they bring.

The bank went ahead to note: “Unfortunately, the spectacular rise and fall in the traded value of cryptocurrencies has drowned out broader discussion on the potential benefits this new technology could bring. The transformational impact that could be delivered by tokenising products and services on the blockchain has been compared to that of the Internet. Crypto tokens and currencies could enable consumers to transact instantly, cross-border and for free, provide them with KYC-compliant digital IDs, and incentivise their behaviour and change the way they engage with governments & service providers.”

Ecobank will continue to track cryptocurrency regulation in Sub-Saharan Africa and provide regular updates that will reflect the regulation progress in the African nations.

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Paxful Continues #BuiltWithBitcoin Charitable Initiative in Africa with the Construction of a Second School

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#BuiltWithBitcoin

Peer-to-peer bitcoin exchange Paxful announced the newest chapter in its #BuiltWithBitcoin charitable initiative: the construction of a school in Rwanda – for students aged six to fifteen – in the Nyamata Sector of Rwanda’s Bugesera District. This will be the second bitcoin-funded school that Paxful has raised funds for.

bitcoinContinuing its partnership with NGO Zam Zam Water, Paxful has kickstarted the project with a $20,000 donation. The total construction cost of the school is estimated to be $100,000. The remaining balance, Paxful hopes, will be raised through its fundraising campaign.

Donations can be made via Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Dash.  Paxful will match all community donations until the $100,000 goal is met.

“The #BuiltWithBitcoin initiative is a testament to the power of cryptocurrency,” said Ray Youssef, CEO of Paxful. He added:

“We firmly believe that it can improve lives and make the world a better place.”

The planned school is expected to be almost twice the size of the first bitcoin-funded school and will serve up to 300 primary school students upon completion. Furthermore, the school will include a cafeteria, a 35,000-liter potable water well, solar panels for sustainability, and many other resources for the education and enjoyment of students, staff, and faculty, according to a company press release.

“Education is a crucial tool for helping those in developing nations increase their standard of living, so we are very pleased to partner with Paxful to serve these bright young students,” said Yusuf A. Nessary, founder and president of Zam Zam Water. He added:

“This is only a small glimpse into what we can and will continue to do with the power of cryptocurrency.”

Paxful began the #BuiltwithBitcoin initiative in 2017 to promote philanthropy and charity within the cryptocurrency industry. The company plans to construct 100 African schools, as well as donate money for wells and other projects.

To contribute to #BuiltwithBitcoin, send all donations to Zam Zam Water:

BTC (Bitcoin): 3Q5CESP85hhXTLSy2HDbSyNchb5Bi8D7ku
BCH (Bitcoin Cash): 15YGniLxo77kfMUWGoRNT6ShUQC93MvaXg

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