As of January 2020, according to Kaleb Davis, a researcher from globalEDGE, there were more than 2000 cryptocurrencies that exist. More and more cryptocurrencies continue to come up and many of them are being used in trade in Africa. Africa continue to adopt cryptocurrencies and a report by Reuter Note shows that small businesses in Africa and other individual users from Africa nations such as Kenya, South Africa and Nigeria use Fintech hubs for commerce purposes.
The pwC research reported that Blockchain has the ability to boost the global GDP by $1.76 trillion by 2030. This can show just how much Africa as a continent on its own can reap enormous benefits from the Blockchain technology. Africa can take advantage of the Blockchain technology and venture into international transactions. With this kind of technology there is a reduced the cost of the remittances and privacy is factored in. Blockchain can help improve business environments, create jobs, and foster healthy competition
Cryptocurrencies have provided outstanding benefits to African entrepreneurs not only in Africa but across the globe. According to Finextra, through the Bitpesa Company, the entrepreneurs can now easily access international markets such as Europe, Asia and America. Cryptocurrencies have enabled sellers to create good relationships based on trust with the buyers as Crypto offer a fast and transparent mode of transfer. Their low costs of transactions has favored the businesses by creating more room to accommodate more traders and investors.
The transparency and authenticity that cryptocurrencies provide between two trading partners is impeccable. This is achieved through the automated transactions that are stored in a Blockchain database that cannot be tampered with by any third parties.
Cryptocurrencies comes with a solution to the fiat money that is brought about by the high inflation rates in the African countries. Cryptocurrencies gain value very fast as compared to the traditional currencies that we are used to and is not affected by any geographical regulation or changes.
The government and financial institutions were used to control the financial status of their countries. With this level of technology, cryptocurrencies have made them very cautious and some are reluctant to implement them in their states. With cryptocurrencies, it is very easy to track down transactions that are made from day to day, enabling the public to track their own transactions creating a revolution in the banking sector in Africa especially in countries with poor banking facilities, not to mention also in areas where accessing financial institutes is a problem. Central banks in Africa cannot keep records of the masses that transact in cryptocurrencies, hence curtailing their power which is being transferred to the masses.
Cryptocurrencies and cyberspaces have a power vested in them, thus bringing to check the once-powerful governments. They are exposing the banks inability to track the economic activities as more and more people are shifting to virtual currencies for trading and investment purposes. Cryptocurrencies are opening up a new market that is uncontrollable and unpredictable unlike the common money market that we are accustomed to. Another factor to consider is their low transaction fees. The banking transaction fee accumulated altogether, adds up to a significant amount that is bitten out of an individual’s finances. This is a major loophole in the banking industries. Cryptocurrencies have minimum to zero transaction costs making them emerge as powerful currencies compared to the traditional money.
Cryptocurrencies have also helped to eradicate poverty in several parts of the continent. Donors send their financial aid but how are we assured that this aid reaches to the ground and brings impact to the intended persons? While transferring their donations via cryptocurrencies there is assurance that this will reach the intended persons. This is because of the transparency that crypto offers. With no middlemen involved, it is fast and very effective. Several widows from the reserves of Kenya have been aided with a pair of goats.
The families of the widows will feed on the nutritious milk from the goat, therefore, boosting their immunity and once the goats bear a young one, they can resell to generate some income for the families. The main goal of this project is to provide households with a way of becoming self-sufficient and not to constantly rely on financial assistance. Through the very same charitable project, Financially Fit for Africa, several households have also been equipped with financial literacy skills so as to meet the Sustainable Development Goal 1 (no poverty).
In some other parts of the country still in Kenya, two old-aged women were facilitated with wheelchairs to aid in their movements. It’s through the same project, Financially Fit for Africa, where the founder and CEO, who is still the founder of the World Causecoin, will facilitate the construction of several maternity and children hospitals across Africa.
World Causecoin is a newly endorsed cryptocurrency that is built on that Cause Capitalism factor. World Causecoin is focused on providing abundances to the less fortune in the society. This is achieved through Cause Capitalism, where a for-profit company partners with a non-profit company not as a gimmick but as a true sustainable partner. With the World Causecoin, the non-profit company will receive 2% of every crypto bought or traded. The 2% will aid in funding charitable projects that are aiming in eradicating poverty within Africa. These projects are already being implemented in Kenya.
Crypto continues to provide many opportunities that Africa would benefit from. With the mass shifting to cryptocurrency, this could be the beginning of a new error. When we as Africa choose to embrace the virtual currency, then we are bound to make progress in terms of digital investments.
