The rise in cryptocurrency usage in Africa outlook on cryptocurrency over the last couple of years. Has demonstrated that digital currencies have become an important method to transfer cash across boundaries and among people. However, they can also a key way to gain access to markets across the globe for those who financial marginalize.
Now Africa Outlook on Cryptocurrency is a Necessity
Despite the ongoing efforts of regulators to limit the usage or trading of cryptocurrency. The number of people who use these digital assets continues to increase. According to studies that have repeatedly demonstrated.
With their inherent fluctuations, cryptocurrencies give holders or users a degree that they can control their money which is not possible using fiat currency. In fact, in countries that are ravaged by the effects of inflation or volatile currencies. Payment with cryptocurrency can provide an option to escape which was not accessible prior to the financial crisis of 2008.
For many, using cryptocurrency rails to transfer money across borders has proven. The most crucial and possibly the most effective application to date. Few opponents of privately-issued digital currencies would disagree with the conclusion. In reality, sending money across borders is much more effective with crypto. Such as Stellar, XRP, or bitcoin cash than traditional channels that are formal and informal.
As the circumstances in Nigeria prior to the blocking of cryptocurrency-related organizations from banks system revealed. Cryptocurrency-based remittances offer the potential to outdo conventional channels used for sending money. Along with the speed of transfer as well as the speed of sending cash in the form of cryptocurrency. Meant that Nigerian migrants could avoid the numerous intermediaries traditionally involved in trans-border transactions.
However, this move and subsequent steps of the CBN haven’t slowed down the popularity of cryptocurrency in Nigeria as the authorities believed they would. Instead, the limitations have been successful in encouraging peer-to-peer bitcoin trading. According to Useful Tulips data over the recent nine months suggests. The CBN failure of regulation as well as several other regulators around world again proves an innovative technology cannot stop with regulation.
Easy Access to Global Financial Markets
One of the least talked about Africa but equally significant use-case of cryptocurrency outlook the trading possibility and the access they offer to those living in developing countries. And access to specific financial products is restricted due to factors that range from size of a nation’s financial structure to GDP. In some instances, the availability of certain financial services is dependent on the interaction between a country that is less developed and its counterparts that are more advanced.