Francophone states of the West African Economy agreed on dropping the use of CFA Franc. It was created in 1945 by France. This currency was used in former West African colonies. At first, the French Franc was very beneficial for the Francophone states, but as for now, it is very criticized. Some people think that this currently needs to be changed. Some think that this will be very unfair to African countries. West Africans are thinking about launching the new currency called Eco, but no one is sure as for now. The Monetary Union is thinking about the new, independent central bank and stable currency. Currently, rather than aiming to achieve monetary union across the economy in the West African States, they need to be focusing on strengthening their economy, bringing down government debt, boosting intra-regional and foreign exchange trades, increasing the investment rate and job creation.
CFA Franc is not compatible with the emerging economy of French-speaking Africa anymore. The reality is that Africa is one of the most promising regions for the adoption of cryptocurrencies. Why? Because millions of traders are using cryptocurrency in trading and in their daily lives and they are finally finding their comfortable spot in life. Africa is the state of crypto. The region has huge potential. Yes, there will be challenges but they are not big and hard enough for Africa to not deal with. Africa is showing early signs that they are ready for the digital currency being their common currency. Among internet users who own cryptocurrencies, South Africa is Third place in the whole world with its rates. After them comes Nigeria. And They both are way above then the global average.
Why are Africans interested in Cryptocurrencies? Their money is losing its value daily. Digital currencies are offering a reprieve for Africans because they really can do a job in the African nations. Citizens are suffering from the high inflation rate and adoption of the cryptocurrencies will erase such hurdlers. African factors are very unique and they can use cryptocurrencies as their currency. If people will be afraid of it, because of the disinformation and the hate of cryptos, the government could bring stablecoins in the game.
They are stable fiat currencies. Their value is one US dollar and they can outperform the African Franc. 80% of Nigerians are already buying the stablecoins. African government and politics are fragile, their rules and structures are unstable. At first, they banned cryptocurrencies because they always hate what they can’t understand. The cryptocurrencies and trading with them in the Forex market could save millions of Africans from thinking about what they would be having as their next meal. Trading really helps people to have a stable income and have a good quality of life. Of course, there are dozens of things and errors that need to be fixed in Africa’s financial market, but they are trying to manage their problems as soon as possible. The African FX market is sometimes messy and full of loopholes being utilized by traders on a daily basis. The most unique example of this is the list of most successful South African FX traders who managed to find these loopholes and profit off them. Adopting cryptocurrencies more could help the whole country’s financial situation. With the centralized and well supported common currency, it would be more likely to achieve the stability Africa is dreaming about. The region could be a heaven for both traders and investors looking for a safe environment. Over the past 12 months, Google trend data was showing the information about Uganda, Nigeria, South Africa – all these places were ranked in the top 10 on the topic of cryptocurrency.
Is Africa ready for cryptocurrencies?
Africa is surely a very good place for the future of bitcoin but is it ready for the common currency to be the cryptocurrency? Some people think that Africa is one of the most promising regions in the world, because of its demographic place and use cases, but will Africa really define the future of Bitcoin?
The interest is growing, but Africa is not ready for mass adoption. The traditional financial system in Africa was created 75 years ago and it goes without saying that it is not up to date. Cryptocurrencies are offering a cheaper and comfortable alternative, but Africa needs to work before they will adapt to the cryptocurrency as their common currency. They are not ready, as simple as that. People need to be more informed about it. Will the cryptocurrencies be good for the future of Africa? Yes. But it is a long process. Digital currencies are working across the globe and everyone can access it in real-time. Doesn’t matter where is a person and what language he\she speaks, everyone can understand the value and the whole idea of cryptocurrency. These benefits would be like a fresh breath for Africa, but they need to develop different industries in order to have good experience in the financial field. Undoubtedly, the continent will still evolve and show the potential of being the one that is adopting cryptocurrencies rapidly, but they need some specific infrastructure, with the high-speed internet, networks, and the proper regulations. The continent requires investments in the cryptocurrencies because, after the proper investors and traders and the people who are well aware of the whole financial system, cryptocurrencies could enhance the new and better way of a more all-embracing life on the continent.
The global pandemic is making many businesses have a huge impact on it. During the pandemic, P2P bitcoin trading in Africa reached record levels. People are searching for ways to survive all this madness what is going on in the world right now. More than $14 million in bitcoins was traded in Africa in the last month. These volumes are showing us that investing in cryptocurrencies like bitcoin is becoming more and more popular among the African traders. Bitcoin is certainly supporting the economies in Africa. The dominance of the African Bitcoin traders comes from South Africa, Nigeria, and Ghana.
African countries are lacking accessible financial services. This is very frustrating for the people living on the continent. The financial institutions in Africa are not very developed and the unbanked population is more than 60%. With such numbers, Africa is increasing the adaptation of cryptocurrency, because they need borderless trade across countries in order to have the financial stability they are aiming for.
Industry experts are thinking that Africa has all the ingredients in order to develop the cryptocurrency across the country, but they need to be ready for that. The whole nation needs to be more aware of what the cryptocurrencies really are because most of them are demonizing digital money. If the Africans will close the gap between mobile and internet access in the near future, their dreams of getting a successful continent and the financial market will come true. The clarity about the cryptocurrencies and regulations is what the government should speak about with people because, without knowledge, there will be nothing that will flourish in this region.
– Crypto Daily