Currently Africa is the emerging market for cryptocurrency as compared to other markets around the world. Africa captures just a 2% of the world’s value of cryptocurrencies that are bought and traded, though with the rapid development of technology and other spurring factors, the disruptive innovation of currency is set to offer better financial channels compared to the traditional channels that are common within and outside the continent.
High inflation rates that African countries experience seem to be the major contributing factor to the rise of cryptocurrency within Africa. According to the Business Insider Africa report, Zimbabwe is one of the most affected country. In 2021, this country experienced a rise of up to 50% inflation making its currency value drop drastically. This has made most of its citizen’s turn to other currencies such as the dollar, but doesn’t the dollar also come with its own foreseeable inflation rate? Nigeria, the countries that majorly contributes to Africa’s economy, also reported a 17.59% raise on inflation in 2021. Though this rate is not as high as from other countries, it is still a matter to look into.
Many Cryptocurrency projections predict that cryptocurrency will bloom in Africa due to this very reason, the high inflation rates in many countries. Abandoning a countries currency and embracing another one due to its decrease in value might not be the solution. Capitalizing on cryptocurrency and Blockchain technology will solve this topic of conversations on the African soils. Cryptocurrencies are not affected by any countries inflation hereby making it a matter of consideration. An example is Bitcoin, which has grown in a 252% within just twelve months, and now the emerging one commonly known as causecoin.
Corruption is also another problem that is deeply rooted in African soils. In many countries within Africa, citizens accesses their public service processes through intermediaries, which Blockchain does not involve. If Blockchain is implemented into the public services delivery then corruption will be mitigated. With Blockchain, tracking the use of cryptocurrencies is very easy. Crypto also has a nature of cryptography that provides security to all transactions that are made.
Cryptocurrencies have two feature that would greatly fight corruption in Africa; these features include a very tight traceability and the lack of anonymity, unlike the traditional form of money. According to the Brookings institution report, Blockchain and cryptocurrency could help mitigate cases of frauds and corruption which mainly occur in government projects. They could also help reduce the costs of enforcement due to their nature of easy accessibility of data. This feature can also help ensure there’s effective and efficient monitoring and implementation of cryptocurrencies generated for developmental projects.
Cryptocurrency is also an alternative to the traditional banking systems. They avoid the transaction fees that are a huge problem to the banking systems since their transaction fees are high especially in Africa. Cryptocurrencies are also better than the traditional banking system as they only require a mobile phone to transact. This comes in handy in areas where citizens cannot access banking facilities.
Many donors who give foreign aid to the African nations now have a more reliable and transparent way of transferring their aid. Blockchain’s level of traceability has enabled giving of foreign aid to be simpler and more effective. The donors will be assured that their aid will reach to the intended needy persons. This is because transfer of aid through cryptocurrency is fast, direct and limits the use of intermediaries who may be corrupt or ill-advised and are just in the occasion just for their self-gains.
The rise of the World Causecoin provides a very safe channel of transferring aid to the needy communities. Why? You may ask. This is because one does not really have to wait until they have accumulated enough cryptocurrency so as to help the needy. However, there is assurance that every time you buy or trade with the World Causecoin, 2% of the amount you traded or bought will definitely be transferred to a non-profit company that will ensure there is delivery of services that are aiming to change the lives of the haves not. Not only by giving them aid from time to time, but also through service that will help them to be self-reliant. This is achieved by equipping the less fortunate with financial literacy skills so as to ensure as they get the aid, the individuals would make maximum utilization to change their financial state and be more self-sufficient and self-reliant. World Causecoin is built on the avenue of Cause Capitalism. The priority here is to redistribute the world wealth to the less privileged especially in Africa so as to reduce the gap between the rich and the poor in societies across the world. The need to transfer aid transparently, prioritizing Africa is very competitive and is also a spurring factor to the growth of cryptocurrency within Africa. The World Causecoin provides a very safe channel to do this.
The increasing demand for access of cryptocurrencies in Africa is encouraged by the arising opportunities for better alternative financial and remittance industries. The radical change into better technological innovations continues to be a contributing factor to this. Cryptocurrency is a plus to boosting e-commerce and also dealing with the high inflation rates. Some African countries have already adopted cryptocurrency, this should motivate even more and more nations in Africa to embrace the virtual currency technology.
