How Can Africa Benefit From Cryptocurrency?

May 14, 2018

By Edmore Chikoore

Blockchain and Cryptocurrency have taken the world by storm and shaken the foundation that the modern civilization is built on.

Cryptocurrency has been received in different ways by different societies of the world, some embrace the change and good things that come with the crypto revolution like transparency, decentralization and financial freedom. The reason behind the acceptance of cryptocurrency is because it addresses long-standing socio-economic problems.

On the contrary, there are other big societies that do not receive the crypto revolution well, plainly because it affects the way they go about their day today.

Where some feel an inadequacy in the current way the system operates, there will be a group that is happy with the way things have been running and cryptocurrency would only disrupt the order that has been working for them.

Crypto for Africa

For as far back as I can remember the continent of Africa has gone through challenges that have set it back gravely. Part of the reason why some parts of Africa are failing to get out of the bind is that the current system the world is using doesn’t work in favor of Africa for many reasons but we will outline only two things Africa needs to potentially turn their fortunes around:

Decentralization:

Africa is a land blessed with an abundance of resources that could be used for the betterment of its economies. The current ways of doing business present day are in a way centralized, through blockchain technology, all becomes decentralized, the systems that have been in place will cease to have control of Africa’s economics. The very fiber of the financial system will change in favor of Africa through the use of its precious resources. Basically, there has never been a time where gold or silver was regarded as worthless!

Government Resource Racked ICO’s

Taking an example from the Venezuelan Cryptocurrency, the Petro which is fully backed by their large oil reserves. African nations can follow in the same footsteps and back their currencies with precious resources. The GolmaICO, for instance, is fully backed by gold royalties. If the cryptocurrency becomes popular, then the price of the coin can potentially increase in value. If the cryptocurrency doesn’t take off then the value remains constant because if it backed by gold royalties.

Below are some of the areas that could possibly transform for the better if cryptocurrency is adopted widely by Africa.

· Remote areas: Banks concentrate their facilities mainly in urban areas leaving out the remote places that are hard to reach, so cryptocurrency being virtual, can play the part that banks are not playing in a larger capacity than how cellphone banking revolutionized banking.

· Cash shortages: Digital currencies are the simple answer to cash shortages. There would be no need to move around with cash or even the overly regulated plastic money, you have Control over finances.

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