Citibank Report: cryptocurrency is highly used in Africa

    2018/09/18 11:19 Joey huang Created with Sketch.
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Introduction the number of per capita Bitcoin holders in South Africa ranked sixth in the world.

According to Cryptodaily on September 18, a report by Citibank in 2018 found that the number of per capita Bitcoin holders in South Africa ranked sixth in the world, in which Kenya ranked fifth and Nigeria ranked third.

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There are many reasons why cryptocurrencies are so popular throughout Africa. Limited banking practices, unstable national currencies, and limited job opportunities are all reasons for turning to cryptocurrency.


Significant growth in cryptocurrency mining activities has allowed companies and bitcoin mines to generate profits and jobs in this area, although the process is still controversial about environmental sustainability and energy impact.


Using cryptocurrencies also allows users to avoid the economic risks of inflation or political turmoil. On May 12, the Central Bank of Zimbabwe, Zimbabwe Savings Bank has ordered that all financial institutions in Zimbabwe immediately stop trading digital currencies or trading in digital currencies.


Subsequently, on May 25, the High Court of Harare in Zimbabwe lifted the ban on the central bank’s previous ban on services provided by all banks and financial institutions to cryptocurrency exchanges. They believe that only by using cryptocurrencies, the owner can fully control his financial situation without government intervention.


As early as February this year, data showed that cryptocurrency has risen rapidly in Africa. At least 15 new exchanges have been opened in South Africa in the past year. In November 2017, Global Wallet and Exchange Luno’s trade volume was  2,000 bitcoins, when the price of the currency was in the range of $10,000, of which approximately 37% were in South Africa.


It is worth noting that on August 12, a commercial bank in Kenya, Ecobank, issued a report that examined the regulatory attitudes of cryptocurrencies in 39 African countries. Twenty-one countries have not publicly stated their views on cryptocurrencies.


The study found that African countries want to regulate cryptocurrencies, but regulators in most jurisdictions are adopting a “wait and see” attitude. Few countries are willing to take the lead in dealing with blockchain technology and cryptocurrency, and hope to take measures before learning from the mistakes of neighboring countries.


Ecobank believes that “African countries seem to want neighbors to innovate and supervise, and their own countries are responsible for learning from them rather than taking the lead. African governments are concerned that if their citizens are overly exposed to cryptocurrency investments, the impact of future collapses may spread. They are skeptical about the use of cryptocurrencies in the wider economy of the country."



    Adapted from: CoinTime Executive editor: Nino
Declaration:The purpose of COINTIME in carrying out more information does not mean endorsing its view or confirming its description. The article is for reference only, does not constitute investment proposal. Investors operate on the basis of risk.
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