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Cryptocurrencies and its usage in Africa

Cryptocurrency is basically, a digital currency based on an innovative technology called the blockchain. Its users range from small businesses

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Bitcoin, BTC, cryptocurrency,Cryptocurrencies and its usage in Africa

Cryptocurrency is basically, a digital currency based on an innovative technology called the blockchain. Its users range from small businesses to process payments, financial tech-based startups, and retail consumers that use it to send money across border and as an investment asset.

Since crypto assets like Bitcoin and its contemporaries, also known as altcoins, have been gaining high acceptability and in high use around the world for payments, investing and banking,

Such that the total daily trading volume of bitcoin,which is the most popular cryptocurrency, is around $38.68 billion and market capitalization touching $123.12 billion on 4th April 2020.

Many Africans largely use cryptocurrencies like Ethereum, Ripple, Bitcoin, and Litecoin for applications in banking, making payment transfers

(READ MORE: Ikeja Hotels Plc proposes final dividend of 2 kobo)

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There are numerous causes for the surge of cryptocurrencies usage in the continent but unreliable local currencies could be a major factor among other rationales

6 features to look out for in a Cryptocurrency, Cryptocurrency: Discern investors’ goldmine , Cryptocurrencies and its usage in Africa

High uncertainty of economies in most part of Africa makes cryptocurrencies, a viable medium for asset management in lieu of storing its value in most cases

For Individuals and startups, it is a better approach in transferring funds to anyone in the world for paying remittance, suppliers, e-commerce shopping, to and from friends and family members based overseas, as it cost very low charges than many commercial banks in Africa which charge excessive fees in unstable currency markets and unreliable economic ecosystem.

Consequently, many Africans in urban areas have relative access to Internet access via mobile penetration and such platform have made the adoption of cryptocurrencies accessible to everyone through mobile

Financial tech-based startups which are very disruptive in Africa is using crypto-assets for new technologies like mobile money.

(READ MORE: Zoom’s founder reacts to security criticisms, says company was unprepared for demand surge)

They are also experimenting with Blockchain and cryptocurrencies in simplifying their processes across African borders and globally. Many of such startups have built blockchain apps, crypto exchanges, and money transfer services for the needs of the average African

Furthermore, a lot of African businesses and startups are now accepting and paying in bitcoins, XRP, bitcoin, bitcoin cash in reaching global suppliers and buyers.

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This has been made easy for many Africans by a growing number of disruptive payment gateways and exchanges based in Africa and around the globe, they include Payfast, Gemini, Coinbase, Luno, Bitpay, Bitstamp, Bithumb, Binance, and many others

Gerald Cotten, Quadriga CX,Cryptocurrencies and its usage in Africa

Luno Exchange a South African based company is the leading crypto exchange in Africa was established in 2013. It has more than a million customers in over 40 countries worldwide and it’s the first crypto exchange to be based in Africa with a presence in Nigeria and South Africa, offering ZAR/BTC, NGN/BTC crypto trading pairs.

(READ MORE: Polaris Bank to wave penalties on loan defaults due to Covid-19)

Meanwhile, there are some notable crypto-based transfer services such as London-based Kobocoin working in Nigeria.

Crypto assets  such as  Bitcoin was created  after the global recession of 2008 with an intention of a decentralized currency with transparent and controls to consumers advocating for low transaction cost, better security and easier access to its medium of choice

In  Nigeria is the largest ecosystem in Africa, its use and trading are still unregulated by the government. Nigeria’s central bank has declared cryptocurrencies as being non-legal tender.

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However, the use of cryptocurrencies has not been banned entirely in Nigeria. It was reported that Nigeria’s Securities and Exchange Commission set up a committee in 2019 to create a framework for the regulation of digital assets and local crypto exchanges in Nigeria. 

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Olumide Adesina is a French-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Member of the Chartered Financial Analyst Society. Behavioral Finance, Duke University. You can follow Olumide on twitter @tokunboadesina or email [email protected]

1 Comment

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  1. Bayei Daniel

    April 7, 2020 at 3:02 pm

    Educative Block chain news

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Business

AfCFTA: Nigeria securing approval to ratify agreement – Trade Minister

The Minister revealed that Nigeria has set up a National Action Committee on AfCFTA.

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AfCFTA: Nigeria securing approval to ratify agreement- Trade Minister, FG meets group to access AfCFTA's $650 billion market, UNIDO’s $60m investment programme to boost Nigeria’s industrialisation - FG, FG to strengthen economic ties with Turkey, FG moves to facilitate tax incentives for SMEs, Made-in-Nigeria vehicles gulp N364 billion from FG

Minister of Trade, Niyi Adebayo said Nigeria is currently in the process of securing approval to ratify the African Continental Free Trade Area (AfCFTA) agreement soon.

The Minister disclosed this during a meeting with the Secretary-General of the African Continental Free Trade Area(AfCFTA), Mene Wamkele on Monday.

Recall that Nairametrics reported last week Mr. Adebayo said that Nigeria is actively working to attract more foreign direct investments into key industries to meet the demands of the African Continental Free Trade Area (AfCFTA).

“As we gear up to meet the demands of the enlarged continental market which will be fostered by AfCFTA, we are actively working to attract more foreign direct investments into key industries,” the Minister said.

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In today’s meeting, The Minister told the delegation that Nigeria has set up a National Action Committee on AfCFTA, which would implement Nigeria’s roll-out strategy in a bid to take advantage of the agreement. He added, “Nigeria is currently in the process of securing approval to ratify the agreement within the shortest possible time”.

The African Union announced in August that the first commercial deal of AfCFTA will be taking off on January 1, 2021.

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FG inaugurates Committee on the Commercialization of the Nigeria Film Corporation

The Minister said that the FG is repositioning the NFC for effective service delivery.

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FG increases hate speech fine from N500,000 to N5 million, moves against monopoly and antitrust, Coronavirus, covid-19, Minister of information briefing

The Federal Government inaugurated a Steering Committee on the Commercialization of the Nigeria Film Corporation (NFC), with the aim of making Nigeria’s film industry a continental entertainment power.

This inauguration was performed by the Minister of Information and Culture, Alhaji Lai Mohammed in Abuja on Monday. The Minister added that the FG is repositioning the NFC for effective service delivery.

“What we are doing today is to simply reposition the NFC in a manner that will enable it to play the role statutorily assigned to it,” he said.

The Minister added that Nigeria’s film industry is a major boost for Nigerian soft power and entertainment, citing the need for repositioning by the FG as a means to enable effective service delivery for the film industry to grow.

The Minister added that Nigeria lags behind her film making counterparts in the film production value chain, citing Nigeria’s 142 movie theaters compared to 782 in South Africa and 11,209 in India and many others. He urged state governments to invest a part of their infrastructure budgets for the entertainment industry as a means to generate jobs and grow the GDP.

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“It is important to appeal, especially to our state governments, to invest in infrastructure in the industry. I don’t think it will be too much for the state governments to ensure they build at least one cinema house in each local government area of their state. That will give us additional 774 cinema houses, ” he said.

The Minister added that the role of the NFC is to regulate Nigeria’s film industry and organise professional practice in the sector and also addressed challenges facing the NFC like the inability to produce its own films for commercial purposes due to the law establishing the Corporation limits on its operational functions.

Lai Mohammed said the NFC will be repositioned as the FG has engaged the services of a Business Development Consultant to conduct due diligence on the corporation and the sector and recommend a strategy that is suitable for its reform and commercialization.

“Dear members of the SC, your appointment into this committee comes with huge trust and belief in your ability and capacity to make this reform happen. I therefore urge you to consider this a critical national assignment that requires unflinching commitment and zeal,” he stated.

The members of the Steering Committee are: Honourable Minister, Federal Ministry of Information and Culture, Alhaji Mohammed as Chairman; Permanent Secretary, Federal Ministry of Information and Culture, Deaconess Grace Isu-Gekpe; Director-General, BPE, Mr. Alex Okoh; Managing Director, NFC, Dr. Chidia Maduekwe, and Director, Industries and Communications, BPE, Abdullahi Dikko, as Secretary.

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Lagos to shut Ojota’s axis of main carriage way of Ikorodu road for 3 months

The Commissioner advised all motorists to utilize alternative routes suggested during the stipulated time.

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Lagos shuts Ketu-Mile 12 section of Ikorodu road, outlines alternative routes, Motorists to pay N1000 penalty at Lekki-Ikoyi Toll Plaza

The Lagos State Government has announced the shutdown of the entire length of the main carriageway of Ikorodu Road from Ojota interchange to Ojota Second Pedestrian Bridge from Monday, September 21, 2020, for a duration of 3 months.

This is development is part of the next phase ongoing rehabilitation work on Ikorodu Road which is set to commence from the Ojota Interchange to Ojota Second Pedestrian Bridge and the Service lane inbound Lagos.

READ: FG, Lagos State collaborate to address declining infrastructure in Festac Town

While making the disclosure, the Lagos State Commissioner for Transportation, Dr Frederick Oladeinde, advised all motorists to utilize alternative routes suggested during the stipulated time for the repairs following the closure of the entire length of the main carriageway for reconstruction work.

Oladeinde in his statement said, “Vehicles coming from Maryland will be diverted at Odoyalaro into the Service lane and the BRT Corridor to link back the main carriageway at Ketu bus stop and Demurin junction respectively.’’

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READ: Lagos allows cinemas, gyms, others to reopen

The commissioner gave an assurance that the Lagos State Traffic Management Authority (LASTMA) and other law enforcement agencies will be available to direct traffic for free vehicular movement during the entire period of construction work.

While soliciting for the cooperation and support of residents and motorists that ply the axis, the Commissioner stated that the project is aimed at finding a lasting solution to the ever-busy road as well as to achieve the present administration’s traffic management and transportation policy objectives.

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