The Africans are very interested in cryptocurrencies. This market may soon become a key for crypto exchanges. What are the biggest obstacles to their mass adaptation in Africa?
In short:
There is a huge interest
It is Uganda, Nigeria, South Africa, Kenya, and Ghana that are at the top of the list of countries that most often search for the phrase “cryptocurrencies” in Google. Why do they need so much for this type of transaction? Most payments in Africa are now based on slow and centralized remittance systems that charge gigantic transaction fees. These are around 9%, mobile payments are even worse: with fees of around 11%. This shows that Africa needs new solutions.
Binance for Crypto Africa
CEO Binance Changpeng Zhao sees many opportunities in the African market. Since 2018, Binance has been slowly entering it, supporting transactions, and trying to educate people about cryptocurrencies. CZ believes that Africa is a key market and is already establishing cooperation with its banking partner in South Africa. Binance supports 35 African countries. However, a potentially huge market is not the easiest to introduce fintech solutions.
Many Africans without bank accounts
In Africa, many people do not have bank accounts. This makes money operations difficult. There is also a lack of cantors. All people who could potentially become members of a crypto community must first find out about it and trust the cryptos, open a bank account and only then start investing.
Education seems to be the key
In Africa, as in many other countries, there is no legal regulation of cryptocurrencies. This does not help with trust in crypto. Nearly 60% of African governments have not yet announced their position on cryptocurrencies, which also delays their adoption on this continent. So, while waiting for legal regulations, it is possible to start educating the local population about the crypto and the opportunities they offer.
Other obstacles
Unfortunately, many Africans do not have access to important crypto infrastructures such as appropriate electronic equipment and internet access. This causes many problems and prevents the full use of the crypto. The fact that, despite all these difficulties, many Africans are already paying attention to crypto, shows the great opportunities this market offers. More and more major players on the crypto market seem to see this potential and decide to start their businesses in Africa.
