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The Benefits of Cryptocurrencies On Africa’s Economy

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BitOasis

Societies today are seeing a progressive shift in the direction of a cashless system. This progress puts digital currencies as the imminent future of both commerce and banking. 

For African countries, such as Ghana, Nigeria, Kenya, Zimbabwe, and South Africa, there is starting to be a feel for digital currencies – mainly bitcoin – in society. Additionally, the blockchain is perceived as the eventual solution to Africa’s present issues and economic growth. Industries in Africa are gradually understanding the basics of blockchain and how it works.

Bitcoin ETF ProposalsIn advanced environments, the rate of approval of cryptocurrency is relatively slow. This is because the financial sector is standing as an obstruction to its utilisation. However, in Africa, these digital currencies are gradually being tested and accepted.

A significant reason for this is because it allows the African community to rise above the typical monetary institutions and establishments. The banks located in cities are also difficult to access from secluded, provincial villages with ease. The increased cost of transaction also adds to the reasons why financial services are limited amongst the African community.

Right here is where cryptocurrency comes in.

Cryptocurrencies provide added opportunities to the African economy. This is major because it is not being scrutinised or controlled by either the Government or financial institutions. 

Digital currencies have the ability of rendering assistance to people in under-developed areas. There is an authentic need for a much more protective method of making digital payments and even loans for little transactions.

What Do Cryptocurrencies Offer Africa’s Economy?

As a non-scrutinised digital currency, cryptocurrency provides flexibility in the economy and a chance to carry out transactions involving diverse monetary markets all over the world.

Cryptocurrency is greatly protected and provides alternatives to the typical banking and transactions. The benefits and opportunities for this technology in Africa include;

  • Alternative Banking for the Unbanked

Cryptocurrency is perfect for unbanked African citizens because it is easily accessible and secured compared to the typical currencies. Also, making use of cryptocurrency accounts allows easy payment for services rendered and utilities.

Approval of this computerised banking allows the building of a virtual financial history which is necessary for the receipt of loans. It can be used for investment in diverse business opportunities.

  • Privacy

Digital currencies are modelled to be decentralised with no central point of failure. They are not subject to management by the Government meaning that nobody can freeze your account at will maybe due to legal problems. Cryptocurrencies are immune to the ineffectiveness and disturbances of the Government.

  • Cross-Border Payments

Top international establishments believe that crypto trade between countries in Africa can act as a spur for an increase in the economy. Even more, digital currency can now back both international cross-border trade.

Local businesses know the importance of cryptocurrencies and how fast and effective it is for cross-border payments. This includes some products and services rendered in the increasing market in Africa.

Additionally, the easy access to a tremendous customer base through cryptocurrency approval provides a possibility for rapid growth in sales. 

Wrapping It Up

It is worthy to note that cryptocurrency is gradually gaining traction in Africa. This is turning the continent into a leader in the current monetary revolution and has the potential to boost Africa forward in its economic development. 

This guest post was contributed by Ibe Emmanuel, CEO and co-founder of BitBata.

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Can Cryptocurrency Disrupt the Online Gaming Industry?

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Cryptocurrencies have had a marked impact in various industries over the past few years, generating hype and controversy in equal measure.

When it comes to online gaming, there is ample opportunity for bitcoin and its contemporaries to cause disruption. But what shape will this shakeup take and how will this differ depending on the segment of the market that is affected?

Online Casino Sites

Bitcoin Gambling ICOsThe rise of digital gambling services has been fuelled in the recent past by the relaxing of regulations surrounding web-based wagering, as well as the streamlining of the transactions required to deposit and withdraw cash from casino sites.

In spite of ongoing efforts to address claims that some countries are too liberal in terms of online gambling regulation, continued growth is anticipated and the industry could generate $100 billion annually within the next half-decade.

Unfortunately, most mainstream casino sites do not offer direct deposits and withdrawals using cryptocurrency. If you want to snap up bonus deals at Casumo or any other popular site, you will most likely have to rely on a credit or debit card transaction.

Indirect use of cryptocurrency can be achieved in this context through certain payment platforms. Skrill, for example, offers a crypto-oriented aspect of its service that can then allow for conversion into a classic fiat currency.

The reason that online casino sites are anxious about embracing cryptocurrency is that it is still subject to a significant degree of volatility, with signs that this state of affairs will persist indefinitely. This is something that players are also considering from a practical perspective, with the investment opportunities presented by cryptos being seen as enough of a gamble in their own right, without bringing the likelihood of losing money at a casino into the equation.

Esports

esportsOnline gaming used to be casually competitive, but it did not take long for professional players to emerge and tournaments focused on showcasing their skills to be developed.

Prize money for major events based on titles like Counter-Strike: Global Offensive and Starcraft can spiral into the tens of millions of dollars, while huge audiences from around the world tune in to see their favourite players and teams do battle.

The influence of cryptocurrency in this area of the market is similarly nascent and in the process of evolving, rather than being a truly disruptive force that is impossible to ignore. What is more relevant to esports is the way that blockchain technology is leaving its mark at the moment.

Blockchain provides the backbone of cryptos and ensures that security is optimal. This is being adopted by certain emerging online gaming service providers in order to reduce the chances of cheating and prevent unwanted outside intervention in both high profile esports events and everyday face-offs between amateurs in their own homes.

As with online casinos, gambling is also being factored into the esports scene at the moment, with both cryptocurrency and blockchain technology facilitating the emergence of new solutions to make this a possibility.

Being able to place a wager on the outcome of a digital competition in the game of your choice is not a new concept. What is gaining traction at the moment is the ability to bet on how well you will perform in a match that you actively participate in.

Platforms which let players host their own mini-tournaments, gamble on the result and make money while they play the games they love can use crypto services to make this happen. This is a dramatic shift from the traditional approach to online gaming and will continue to cause changes as the industry matures.

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3 Reasons Why Africa Is Set For A Cryptocurrency Explosion

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Cryptocurrency Explosion

Bitcoin and other forms of cryptocurrency have irrevocably changed the way we think about money from a fundamental standpoint. Where most forms of hard currency are subject to government oversight and regulations, cryptocurrencies are typically free from such restrictions. Hence, it is easy to see why bitcoin was a favorite amongst dark web users and criminals. Controversy aside, cryptocurrencies are considered the way of the future and have the potential to bring about a revolution.

With a massive population and its wealth of natural resources, the continent of Africa has been described by Forbes as being the last frontier of investment. Now, in the face of changing times and an increasingly connected world, cryptocurrency is making its way to Africa.

Join us as we take a look at why Africa may be the next big thing for cryptocurrency.

1. The Lack of an Organised Financial System

With its bloody history of colonisation, political instability, and civil wars, Africa’s growth in the banking and finance sector has been lacking. Despite initiatives undertaken by the IMF and World Bank, financial inclusion in Africa remains low.

A lack of political will and resources has made the task of developing a banking infrastructure a daunting one. As a result, this has left a sizable amount of the population with little to no access to financial services.

Fortunately, because cryptocurrencies can be transferred and received by anyone with an Internet connection, the need for middlemen or banks is eliminated. Throw in the fact that Internet connectivity in Africa has been on the rise and we have all the elements required to see an increase in cryptocurrency uptake.

The trend can be witnessed by the number of cryptocurrency exchanges appearing across Africa. From Golix in Zimbabwe to the Naira Exchange in Nigeria, one can expect to see an increase in uptake in the years to come as Africans move beyond banks and their legacy services.

2. The Youth Factor

African tech startupsWith an entrepreneurial community and a high rate of tech-literacy, it should come as no surprise that a rising number of youths in Nigeria have turned to freelancing in lieu of traditional employment. Working with members of the international community, these freelancers offer a variety of services that range from copywriting to programming.

Unfortunately, the notoriety of Nigerian Internet fraudsters has resulted in some complications for burgeoning freelancers. For example, payment companies like Paypal do not allow the transfer of funds into Nigeria in order to discourage Internet fraud. On the other hand, payment companies who do offer such services to Nigerians often do so at an exorbitant cost.

To work around this, freelancers in Nigeria have turned to accepting cryptocurrency as a form of payment in lieu of cash transferred online. Among the crypto-literate in Nigeria, bitcoin is seen as being on par with the US dollar.

3. Cryptocurrency As a Stable Form of Currency

The African continent is no stranger to civil wars and unstable governments. From Venezuela to Zimbabwe, we’ve seen how hyperinflation can decimate the value of a nation’s currency.

Bitcoin creator Satoshi Nakamoto has often cited that bitcoin was intended to be immune to economic turmoil due to its decentralised nature. Suffering from crippling hyperinflation, citizens of Zimbabwe have turned to Bitcoin and other cryptocurrencies despite being banned by the Reserve Bank of Zimbabwe.

Kenyan Shilling

Tech-savvy Zimbabweans have often cited that utilising bitcoin as a medium of exchange allows them to hedge the value of their cash against hyperinflation. In a nation where financial services are sketchy at best and foreign investment is minimal, bitcoin provides Zimbabweans with a measure of much-needed stability.

Further proof of this can be seen by how Venezuelans have turned to bitcoin and other cryptocurrencies in lieu of the now defacto useless Bolivar. Being free from bank and government intervention, cryptocurrencies allow citizens to freely transfer funds into or out of the country with minimal fuss.

Cryptocurrencies have the potential to democratise financial services due to their independence. With adoption rates of Bitcoin and cryptocurrency set to explode in Africa, you just need to hold your horses and wait for the value growth.

This guest post was contributed by cryptocurrency writer Benjamin Lee. 

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eatBCH – Bitcoin Cash Community Has Raised Over $10,000 to Feed Vulnerable South Sudanese

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eatBCH

eatBCH is a charitable cause launched with the aim to help feed individuals who live in Venezuela’s struggling economy through donations in Bitcoin Cash (BCH). After initially launching in Venezuela, eatBCH was also launched in South Sudan to bring the “peer-to-peer electronic cash-to-food system” to the central African nation.

To find out more about the eatBCH initiative in South Sudan, BitcoinAfrica.io spoke to one of the organisation’s volunteers, Garang Deng.

eatBCH in South Sudan

EatBCH South SudanIn a conversation over Telegram, Garang Deng told BitcoinAfrica.io that the eatBCH South Sudan team, which works on a volunteer basis, was inspired by the initiative’s impact in Venezuela after which a team member got in touch with eatBCH Venezuela to find out more how the charitable cause was run in the South American country.

After several of today’s team members attended the Africa Blockchain Conference in Kampala in May 2018, the group decided to launch an eatBCH initiative in South Sudan.

“We launched it there and got our first donation, and we bought some food items on our way back home,” Deng explained.

Since there are no businesses or vendors that accept bitcoin cash and no local cryptocurrency exchanges in South Sudan, the eatBCH team uses Ugandan exchange Coinpesa to convert the BCH to mobile money, which it then uses to make its food purchases.

“We started the charity part-time on weekends in the capital, Juba, in our neighbourhood and then expanded to some of the most affected areas by the conflict, such as the town of Yei or Bor. There, we were able to feed over 500 internally displaced people, mostly elderly and children. We were able to do that through our colleagues whom we trained after coming back from the blockchain conference,” Deng elaborated.

Since May 2018, the eatBCH South Sudan initiative has managed to raise over $10,000 said Deng.

More to Come

Future plans of eatBCH in South Sudan are “to teach people to use this money to improve their lives not only for feeding but to trade with it. Also, we are planning to send these kids who work on the streets to school if we are able to get the support we need.”

Anyone that is interested in contributing to the charitable cause on a voluntary basis is welcome to do so. Currently, the broader team includes students from high schools and colleges who help to distribute the food to children and the elderly.

Moreover, anyone wishing to contribute financially to the cause can donate to eatBCH’s Bitcoin Cash (BCH) wallet found on the initiative’s Twitter and website.

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