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The cost of 1 Bitcoin is 24007.30 USD.
Pricey! Only for the Europeans and the Americans, right?
No. Quite strikingly, Cryptocurrency reached countries with low spending capacity. You will be amazed to know that a significant portion of South Africa (7.1%) and Nigeria (6.3%) use digital currency.
In June, Central Africa declared Cryptocurrency the legal tender. Experts say that Cryptocurrency can help the underdeveloped countries of Africa. By the way, do you use Cryptocurrency? If not, please use Bitcoin Motion. They can help you trade in Cryptocurrency. In this article, we are going to discuss how Cryptocurrency helps the underdeveloped countries of Africa. So let’s start the discussion right here.
How Is Cryptocurrency Getting Popular In Africa?
Cryptocurrency is getting popular in Africa for more than one reason. Let’s see how it is.
1. Weak Banking System
The banking infrastructure in Africa is not that strong. This is one indicator of a weak economy. A feeble economic system has become problematic in strengthening the banking system in Africa.
The transaction costs are so high that it turns out to be extremely difficult for businesses to rely on banks. Even foreign Africans were reluctant to send money. With Cryptocurrency, they can avoid third-party payment systems.
2. Weak Currency
African countries are jostling amidst economic turmoil that is caused due to poor debt management and political instability. Inflation turns out to be the constant. This has ravaged the traditional economy of the country. With Cryptocurrency, you don’t have to bother about the monetary ecosystem. This has highly benefited Africans.
3. More And More Use Of Mobile
Cryptocurrency enables people to use mobile networks. Via the internet, they can participate in any kind of payment-related activities that are carried out by financial institutions and intermediaries.
With Cryptocurrency, you are getting cheaper, easier, and easier to use conventional methods. This technology facilitates peer-to-peer transactions. There remains no role of the intermediaries or any third-party system.
How Can Cryptocurrency Be Used In Africa?
Cryptocurrency has the power to empower societies as well as the Economy in Africa. Africans do not have a robust banking infrastructure. Even the infrastructure facilities for the internet are not that strong.
Cryptocurrency can help Africa with its innate characteristics and benefits. There are some benefits of Cryptocurrency that actually have potentialities to help Africa. Let’s see them here.
1. Eliminate Poverty In Africa
Africa is one such content that has remained backwards regarding the economic indexes. There is the undaunted daring of Corruption in every nook and corner. This led to the rule of the goons. As a result, significant areas of the population are away from growth opportunities.
But things in Africa are slowly changing thanks to Cryptocurrency. Cryptocurrency has provided an alternative route to carry out economic transactions. If the economy is strong, there is a high chance of growth because there is more rolling in the economy.
2. Remittances And Fraud Will Save Africa
There are some nations whose economy is dependent terribly on remittances. These include Gambia (33.8%), Lesotho (23.5 %), Cabo Verde (15.6 %), and Comoros (12.3 %).
Now the remittances are sent via Cryptocurrency; it best serves the requirements of Africa. This is because, with Cryptocurrency, you don’t have to depend on some third-party system that deducts lots of service charges. Even African artists are using NFTs to counter threats of any kind of theft and, at the same time, earn.
3. Cryptocurrency And Charity
Different International foundations donate to Africa in various social development projects. Common examples include opening schools for kids that are less privileged.
Now that you provide charity in Africa via Cryptocurrency, they cut some insignificant amounts. It won’t hurt you. If you had done the charities using some third-party payment system, you might have to provide 2% to 4% of the transactions as a service charge. This will hurt you for sure.
For instance, Nigeria gets different kinds of charitable funds from international organizations to fight illiteracy. Therefore, donating to Africa through charity strengthens the continent to fight its internal issues.
In order to conclude, it could be understood that Cryptocurrency has innate benefits, which are used to strengthen Africa. There are different ways through which Africa benefits from Cryptocurrency. So Cryptocurrcy has really opened a new path for Africa in strengthening its dilapidated economic structure.