Forex in this article
• Africa with high inflation rates and a lack of banking infrastructure
• Study sees ideal breeding ground for Bitcoin & Co. in Africa
• Leading crypto continent in 5 years?
Cryptocurrencies are arriving more and more in the middle of society. The trend is also exacerbated by the corona pandemic, which drove central banks around the world to unprecedented measures. To mitigate the impact of the crisis on economies, the monetary watchdogs flooded the markets with liquidity – which increasingly fueled inflation concerns.
A positive market environment for cryptocurrencies such as Bitcoin, which is further reinforced by legalization measures in many countries. Bitcoin & Co. are particularly popular on the African continent, according to a study.
Crypto as a use case in Africa
“The State of Crypto in Africa” is the name of a study by the analysis company Arcane Research, in which the experts took a closer look at the use and spread of digital currencies. They found that Africa was “one of the most promising regions for the introduction of cryptocurrencies”, which they attributed in particular to a unique combination of economic and demographic trends.
Many African countries are struggling with high inflation rates and volatile currencies, but at the same time there are problems such as capital controls and a lack of banking infrastructure. This leads to the fact that in Africa there is an ideal breeding ground for currency alternatives, the study authors continued.
However, the population apparently does not focus on a possible rise in the price of cryptocurrencies, which distinguishes the region from many other parts of the world: “While the focus elsewhere was on investment, speculation and trade, Africa has more need than any other continent to use Cryptocurrencies “. They are the ideal antidote to the existing challenges.
Transfers important source of income
Many Africans get money from abroad. According to the World Bank, expats sent $ 48 billion to sub-Saharan Africa last year. However, traditional money transfer services sometimes charge high fees and the money is not available in real time. – Trade Bitcoin with Plus 500 – how it works. 80.5% of retail CFD accounts lose money. – This also applies to domestic transfers, here too, the main problems are high costs and low speed. Bitcoin platforms solve these problems: With the help of P2P Bitcoin platforms, money can be moved from A to B much faster and cheaper. Against this background, “there is no doubt that Africa is well suited for the rapid introduction of cryptocurrencies,” the study concluded.
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Africa as the leading Bitcoin cryptocontinent?
Ray Youssef, the CEO of Paxful, one of these P2P platforms, also sees the African continent on the way to becoming a crypto continent. “Africa is currently leading in trade volume. Over the next five years, with its enormous growth in trade volume, Africa will become the leading Bitcoin cryptocontinent. It will grow in a way that no one can imagine. In addition, with the advent of COVID-19, enormous explosion observed, “said the manager in a podcast.
He also found that much of the African interest came from millennials. African millennials could be attracted to Bitcoin because it is both a hedge against inflation and has an overwhelming return potential on a dollar basis.
Editorial office Forex-news.com.net
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