Africa has been a big market for cryptocurrency for a while now especially because most of its countries fall in the category of developing Nations. Several factors make Africa the number one or the biggest market for digital currencies and actual individuals from different corners of Africa are embracing virtual currency.
Those who adopted crypto in its early development stages can attest to how crypto has enabled people to prosper and develop.
For a long time nations in Africa, Kenya being one of them, have extremely been affected by high inflation rates. The inflation rates contribute to diminishing economic growth and cause currencies to lose value. This has discouraged citizens from making long-term financial decisions since they are not sure of the value of their savings or investments in the future. This contributes to deflation which in turn inhibits economic growth as it reduces profits and lowers investor incentives.
This has made people look for an alternative to fiat currency. The alternative has been gold as it is an asset that maintains value for a while. However, cryptocurrency set in and became a better alternative. Citizens from countries like Kenya continue to embrace stable currencies.
The printing of money by the Central Bank is one of the major factors that contribute to the soaring inflation rates. A good example is there high inflation rates experienced in Zimbabwe due to the Zimbabwean Central Bank printing fiat currency. This has led to the deterioration in the value of the Zimbabwean fiat currency.
The World Causecoin like any other cryptocurrency cannot be manipulated the way fiat currency can by printing more or by altering interest rates. Crypto has a limited supply making it a better alternative for a store of value that resists inflation.
Corruption is another factor that has led to the erosion of trust in the public sector. It has led to the misuse of tax which is paid by the citizens or the rates that have been allocated to projects that have been set up for community development, like the building of infrastructure, especially roads and hospitals.
Cryptocurrencies have a way to inhibit corruption cases for instance if a certain amount of crypto was paid as a subsidy for government projects tracking them down will be so easy. Accountability is enhanced as all this money will be used for the intended purpose. Another thing with crypto is that the factor of middlemen who are corrupt and greedy is eliminated. Government projects will be able to run more efficiently without any waste of funds.
Not everyone in Africa has access to banking infrastructure. This is because one needs actual cash to open a bank account not forgetting the personal information that one needs to give out to the banks that could land in data breaching cases. These individuals cannot receive the benefits that come with holding a bank account such as accessing bank loans or saving in Banks.
However, a good number of these individuals without bank accounts have smartphones and access to basic internet. These are just the basic requirements for crypto investing trading or saving. Cryptocurrencies like World Causecoin are accessible to anyone, decentralized, and easy to utilize, curbing the disadvantages that come with a lack of a bank account.
Entrepreneurs also have a lot to benefit from cryptocurrency this is because they can receive payments without the need to move from one place to another just to collect their payments. And not forgetting to mention the low rates of transaction which favor businesses. Cryptocurrency transactions are also very fast as no central banks are involved to validate transactions which takes a while before the transaction is done. With cryptocurrency, validation is done through Blockchain technology which is fast and accurate. It is also easier to keep track of payments hence accounting is easier.
Through cryptocurrencies, individuals can transfer funds to their loved ones, especially the people who left their nations from Africa looking for greener pastures in the United States of America or in the United Kingdom. Cryptocurrency facilitates sending of money to their loved ones as it is less costly and transactions are done in just a few minutes. Central banks also limit the amount that individuals can send or receive in certain locations. With cryptocurrency, anybody can transact any amount of money without any limitations.
Crypto is here to disrupt the traditional ways of transacting as it is easy to access them over the internet. Crypto continues to spur economic growth by improving the economic status of the people which is later reflected in the economic development of a country. As time goes by cryptocurrencies continue to spread across the African economies.
