Crypto: It Is Time For South Africa To Take The Frontier

News | October 30, 2019 By:

If you have been in the crypto world and already got acknowledged with the ecosystem, you’ve probably heard that Africa will be the next frontier for adoption. As the proof for the assumption can be counted reported surge in Google search, rankings for Bitcoin in Nigeria and South Africa. According to some trends, Nigeria had the highest searches for Bitcoin with South Africa in second and Ghana taking fourth place during the last years. The topic of South Africa dominating the market remains to be the topic of discussion within the cryptocurrency community.

Some people consider the trend of increased search as an adoption, while others assume this might be the interest that does not necessarily mean the adoption of the currency. Some people have even argued over the topic of the rise in search volumes illustrated an augmented use of bitcoin in scams. 

Behind the Scenes 

There should be a serious reason behind the very rapid change in numbers. The discussion about it has been quite broad and we can definitely see the logic in it. The survey that indicated opinions of consumers from across the world, including Nigeria and South Africa, offered an interesting opinion. Consumers in the western part, from more developed countries, are financially sustainable and the necessity of money chasing is a lot less than in countries like South Africa. According to the report, 55% of Nigerians with an average age of 25 did not feel secure about their financial status. 

Not being secure about the financial condition in a capitalistic world is not something we would like to feel. It might not be the only instrument, but it definitely is vital for any other instruments. When you need to have security in life, you start to investigate and explore more of what can bring you security. The first reason can be exactly the security, which cryptocurrencies can offer consumers together with the legal and cheaper means of exchange value than the existing common one. The reason explains the curiosity of the consumers. 

Though indifference with Nigeria and South Africa, not all African countries seem to follow the example. The governments of African countries such as Burundi and Uganda have recently taken severe regulations against cryptocurrencies, which could be a good explanation for the lower interest in the investigation the crypto ecosystem in this region. Moreover, restrictions lead to higher unemployment rates. Although in South Africa and Nigeria, unemployment rates are still high, coming out of the fact that the current financial system was established in the country only 75 years ago, they are still going strong. The crypto economy will bring alternative ways of exchange and payments, which is very useful for countries with tax and lose charges. Freelancing offers from the region of South Africa were also observed during the past year, which gives hope that people are seeking a better way of income. Although, there are still many people who depend on offline jobs, and by restrictions in other regions, the government obviously does not leave any room for development. 

The use of bitcoin and the registration of new electronic wallets have been observed mostly in South Africa, despite the drastic drop of the currency value itself. Several million rends are traded daily, which means that more or less the region has adopted the crypto economy.

Raise Awareness  

While one claim that bitcoin search rise in South Africa is an indicator of adoption, others simply define it as the method of education. Many cryptocurrency firms are open for dialog with the government in order to raise awareness about cryptocurrencies. 

There already have been steps made towards this direction, which will positively affect the local society as well as the crypto community. 

People who are into investigation and who are thinking about their money carefully should feel secure enough in order to feel comfortable. When education concerning this subject is taken to a new level, people will definitely know what they are going to tackle in case of adoption and one way or another to make their own choices.

Private experts also are in favor of crypto firms providing more education on the subject in cooperation with the governmental structures. Informed means secure! 

Education is necessary if the country is aiming to reach a higher ranking. Though, it is assumed that once people are more educated and have more information, it is more likely that the search rates will lower. Which is again a logical conclusion. 

Scams Still An Issue 

Unpopular opinion about everything that has drastic change can’t be a scam, can actually turn out as truth in this case. Agreed that one of the most efficient ways of money laundering and illegal trades are with the cryptocurrencies, though many regulations and different measures in place have slightly changed the picture. Programs and companies are committed to detect and prevent money laundering as well as illegal financing and trading. Using robust systems and controls may be efficient in identifying and analyzing illicit activities in the blockchain mechanism. 

Tools such as Chainalysis are exceptionally well used. It recently enabled law enforcement in the US and the UK to take down one of the largest child abuse material sites. Law enforcement in 38 countries made 330 + arrests of pedophiles and rescued 23 children from abusive circumstances. All of this would have been unavailable unless there was cooperation from the international law and cryptocurrency exchanges. 

As time passes and the information is more reachable and affordable it is a lot easier to determine the legit and illegal uses of the cryptos. 

The reason s of scams being less popular among society is very much legit, though there have been additional strict regulations aimed to combat the use of cryptocurrencies for scams. Both front running countries are actively trying to fight scammers. 

The Frontier 

With the already existing regulations and changes that South African countries offer and all of the challenges they have come through in terms of the financial system, it is most likely that the country is more than ready to look into the brighter future. Cryptocurrency is something that is expected to be adopted by the countries, as there is a deep interest from society’s side. Not only the society but the government takes specific and very valid steps in order to meet the requirements and needs of the consumers. 

It will not be a surprise if in a short period we will see South Africa and Nigeria fully adopting the crypto economy and contributing to the ecosystem while taking it all to a whole new level