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Why is Africa Slow to Adopt Bitcoin?

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Africa Slow to Adopt Bitcoin

With 54 countries in one continent, the adoption and integration of bitcoin in Africa will and continues to happen at different tempos. Although bitcoin has shown massive potential globally, its uptake in most parts of Africa has been and continues to be slow.

For bitcoin to experience massive adoption in Africa, co-founder and CEO of Regenize, a South African startup, Chad Robertson, believes that educating people on how bitcoin works is the key.

Regenize aims to motivate people to recycle things and in exchange they get rewarded with virtual currency that they can use to purchase various goods. The recycling services are monthly and come at a fee. Customers are then rewarded with the virtual currency that they can use on Regenize’s mobile voucher platform.

Since Regenize’s launch in 2016, the startup has had a positive impact on the people of South Africa. Still, Robertson firmly believes that different industries will influence the uptake of digital currencies.

In an interview with Disrupt Africa, he is quoted as saying,

“Using bitcoin as a means of purchasing everyday goods will be determined by the adoption rate of your larger retailers. However, for the financial services sector it has a high uptake due to reduction of costs when transferring bitcoin.”

Factors Hindering the Adoption of Bitcoin in Africa

According to Robertson, several factors make the adoption of bitcoin and other virtual currencies slow in Africa.

Education and Awareness

In his view, education and awareness are mandatory if bitcoin is to scale in Africa.

“Specifically, in South Africa, we have such a huge gap that keeps on growing regarding wealth but also knowledge on the ever-changing tech landscape. If I’m sitting in a coffee shop in the CBD, it’s quite likely someone will know what bitcoin is. However, head down to the Cape Flats or townships, and it’s highly unlikely that there’ll be many people who are aware of this,” he went on to say.

“However, this lack of education and awareness could be drilled down further on to find the root cause. There are too many people living in poverty in South Africa and Africa. They simply cannot think about using bitcoin as it’s not relevant to their needs. The local spaza shop does not accept bitcoin so how will someone get their bread or milk? Schools don’t accept it for school fees. You cannot buy electricity with bitcoin to keep your lights on. So why would they care or want to be educated on it?” he asked.

In Robertson’s view, there is need to develop solutions that work for everyone and not just the minority if bitcoin and other digital currencies are to have significant momentum.

“If you look at the available places one can spend bitcoin in South Africa, it makes sense why it’s the minority who’s focused on it,” he added.

Security and Visibility

Another factor that needs to be addressed before digital currencies can be fully adopted is security which ties back to education.

“There are many people who have been scammed on the internet, especially those who are digitally uneducated. Therefore, there is a fear and a stigma around using the internet as a place to transact,” stated Robertson.

On the other hand, Africans are used to the normal brick and mortar institutions where they can go and make their inquiries. Digital currencies are decentralized and lack visibility hence raising certain questions.

Robertson said, “With bitcoin, there’s no visible place to lay a complaint or an enquiry. I would think change management would play a large role in the transition from using a bank. For generations, people have given their money to the bank and there’s a trust as the bank is a brick and mortar institution. With bitcoin, people might have fears of what happens to my money? Who do I complain to?”

According to him, for more African nations to come on board, the focus shouldn’t be on change but on the people and their needs.

Smartphones and Data Access

The founder of the South African startup, The Sun Exchange, Abraham Cambridge, believes that the most basic hindrance to bitcoin adoption is access to data and smartphone adoption since bitcoin transactions rely on internet access. The Sun Exchange uses bitcoin to crowdfund for solar projects.

“Feature phones don’t really cut it, but it is just a matter of time. With smartphones getting cheaper every day, soon anyone in Africa will be able to use bitcoin services where data is available,” Cambridge said.

“To help reach this point, at The Sun Exchange we are developing hybrid solar/data access projects with cryptomines embedded into the infrastructure. This will ensure that remote villages get energy, communications and their own digital currency money supplies in one fell swoop.”

Despite these setbacks, Cambridge’s optimism on the future of the blockchain technology is significantly high.

“This stuff is just getting started. Think global, free to use, secure computer systems‎ that run autonomous businesses, data storage, and energy transfer. Whole governments will be running on blockchain applications. The UAE city of Dubai has already set a target of being 100 percent running on blockchain by 2020 so we are really not far from this world,” he noted.

“Smart contracts running on self-driving cars that ‘bid’ for their position in traffic is just one of many incredible ideas I have come across that will change every aspect of our civilization.”

Although Africa is slow to the adoption of bitcoin or any other digital currency for that matter, countries like Kenya, Nigeria, and South Africa are already a step ahead. Moreover, the University of Cape Town in Windhoek, Namibia is set to be the first in Africa to offer a postgraduate degree that teaches about bitcoin come January 2018.

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Binance Launches Fiat-to-Crypto Exchange in Uganda

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Binance Launches in Uganda

Global bitcoin exchange Binance has launched a new fiat-cryptocurrency exchange in Uganda. The exchange will also be offering a reward of 0.5 BNB to the first 20,000 users that register on the site as part of its promotion in Uganda.

The announcement comes nearly two months after Binance partnered with Crypto Savannah, Made in Africa initiative, and Msingi East Africa to promote economic development in the East African country.

Changpeng Zhao and Yi He founded Binance in 2017 and raised $15 million through an initial coin offering for its ERC20 token BNB in July of the same year.

The exchange plans to move its offices to the island nation of Malta after the implementation of stricter regulations in China and Japan. In January 2018, Binance was the largest crypto exchange with a market capitalisation of $1.3 billion.

Binance in Uganda

BinanceBinance will also offer its Ugandan users a month of zero trading fees when trading goes online. The exchange will announce the opening for trading at a later date.

Users can find out if they have won any rewards by logging into their accounts and accessing ‘Distribution History’ in the Account Center. In addition, users will be required to complete ID verification to be able to withdraw funds from Binance.

Ugandan users will enjoy an exchange that offers fast transactions of up to 1.4 million per second and state-of-the-art storage technology for utmost security. The exchange also provides 24/7 customer support and has a user-friendly interface.

The presence of Binance in Uganda aims to boost financial inclusion in the country, which has increased from 28 percent in 2009 to 54 percent in 2013 according to its national financial inclusion strategy 2017-2022.

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LINE Corp to Launch Cryptocurrency Exchange BITBOX in July for Global Trading

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BitBox
Image by linecorp.com

The developers of popular messaging app LINE and LINE Group’s cryptocurrency and blockchain company LVC Corporation have announced that they are set to launch a new cryptocurrency exchange called BITBOX in July 2018. The Japan-based firm made the announcement during the LINE Conference 2018 held in Tokyo.

The New BITBOX Exchange

BITBOXBITBOX will offer over 30 high-demand cryptocurrencies to users globally with the exception of Japan and the US. The exchange will trade coins such as bitcoin, ether, litecoin, and bitcoin cash while charging low trading fees of 0.1 percent. BITBOX will support 15 languages, according to the company press release.

The selected cryptocurrencies for the exchange have undergone an extensive screening exercise and have been picked by an internal committee, promising users a convenient and safe trading experience. LINE will also incorporate its top security standards to the cryptocurrency exchange.

LINE Corporation CEO Takeshi Idezawa said:

“As a key part of LINE’s new financial services, BITBOX shows our commitment to fulfilling the growing demand for more diverse financial options. With BITBOX, LINE users will be able to access cryptocurrencies more easily, while also being assured of state-of-art security measures to protect their assets.”

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Nigerians Have Invested Over $5m in Cryptocurrencies Despite Regulator Warnings Says KureCoin Hub

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Nigerians Invest in Cryptocurrencies

Nigerians have invested over five million US dollars in the cryptocurrency market in the last couple of years according to data from Nigerian cryptocurrency platform KureCoin Hub.

The data shows that Nigerian retail investors are investing heavily in the cryptocurrency market despite warnings from the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) against investing in an unregulated market.

KureCoin Hub’s co-founder and CEO Tega Abikure has criticised the stance regulators have taken and argues that the country will lag behind as other countries enjoy the benefits of blockchain technology and cryptocurrencies. Abikure told New Telegraph:

“It is not a matter of whether the government likes it; it is about whether they need it. I am not sure the internet was liked when it first came. […] It is not a matter of whether they are going to embrace it; it is about when they are going to do so.”

Abikure observed that other countries such as Uganda and South Africa have already taken steps towards adopting blockchain technology while Kenya is pushing forward with a functioning blockchain taskforce.

“Nigeria is being left behind,” he noted.

The Blockchain as a Source of Foreign Direct Investments

Abikure also believes that blockchain technology could be a major source of Foreign Direct Investments (FDIs) in the next five to ten years. In addition, he is of the opinion that a lot of money is being made in cryptocurrencies on the continent with most of it leaving Africa’s economy.

On one of the benefits of blockchain technology, he said: “[The blockchain] is completely transparent and cannot be changed; it can be used to create a decentralised system of payment where the taxpayer had an unhindered access to the collector which is the government. It enhances revenue collection and removes the challenges of remittances.”

Blockchain technology can also improve the banking sector, the electoral process, the use of donations in charitable projects, and the supply chain, among many other use cases.

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