The African crypto market is overwhelmingly becoming a behemoth of activities as several countries including the nation of Namibia are beginning to push for various forms of adoption of cryptocurrencies as a means of payment.
What is cryptocurrency?
It is important to explain the underlying concept of cryptocurrency in order to accommodate the new users all over the world in the dynamic transformation in which the financial system is emerging.
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Cryptocurrency is a digital payment system that doesn’t require the need of a third party or intermediary like banks to verify its transactions. It is invariably known as a peer-to-peer (P2P) system that can enable anyone anywhere to send and receive payments all over the world.
This would therefore necessitate a transformation of how money is being handled. We are all aware that the present form of money is practically tangible or physical in nature and can be carried around and exchanged in the real world.
However, cryptocurrency is a set of computer algorithms or instructions designed using blockchain technology to ensure payments exist purely as digital entries to an online database or ledger system describing each transaction.
When you transfer cryptocurrency, the transactions are recorded in a public ledger (using the distributed ledger technology) which is global and accessible to everyone. Cryptocurrencies are otherwise known as digital assets and they are stored in digital wallets, unlike physical currencies which are stored in financial institutions like banks.
What is the rate of adoption of cryptocurrencies in Africa?
There is an increasing interest in the usage and possible adoption of cryptocurrencies across the world. Countries in Africa that do not want to be left out of the trail-blazing technology, seem to be warming up to the idea of legalizing the use of digital currency with the Central African Republic, for instance, adopting Bitcoin as an official currency in the early part of this year. This has given the country the status of becoming the second country in the world and the first in Africa to do so.
According to a report by blockchain data platform Chainalysis, Africa’s cryptocurrency market grew by over 1,200 percent in a year between 2020 and 2021. The report stated that although Africa had a small cryptocurrency economy, with $105.6 billion worth of cryptocurrency received between July 2020 and June 2021, it was also “one of the most dynamic and exciting”.
There has been a significant increase in the interest in cryptocurrency since the last report. This is notwithstanding the fact that we were in a bear market that resulted in a massive decline in the price of these cryptocurrencies. One fascinating country that caught the attention of the African crypto market is the nation of Namibia.
Cryptocurrency in Namibia
Namibia is a country located in the Southern part of Africa with borders close to the Atlantic ocean, Zambia, Botswana, Angola, and South Africa with a population of over 2.5 million people. This has not deterred the nation from being innovative as it drives toward crypto adoption.
Hence the country has put in place financial measures to facilitate and explore the options of the crypto economy.
It is noteworthy that the nation installed its first crypto kiosk otherwise known as a Bitcoin automated teller machine (ATM) in the capital city of Windhoek. The crypto kiosk is functioning in full compliance with the requirements of the Namibian Financial Intelligence Center by all laws that are relevant in Namibia as well as internationally.
It is expected that any user will be required to provide the Crypto Kiosk with personal information, such as their selfie, mailing address, and Namibian ID number, before processing the transaction. This is a know-your-customer (KYC) measure set by the company managing the Kiosk project as a way of avoiding any form of money laundering activities.
The potential for cryptocurrency growth in Africa
The growing interest in cryptocurrency and its underlying benefits which includes transparency, lower transaction cost, and instant means of payment, would become a transformative tool of payment as a means of doing business and thereby increasing the potential of future investors into the continent as it would eventually ease the means of doing business.
The Klever wallet would be indeed an indispensable tool for any population including those from countries with a rising interest in the crypto world. The people from African countries can definitely benefit from a fast, secure, and easy-to-use software platform to store digital assets.
Klever offers a great trading experience with Klever Exchange for all kinds of users. Check Klever Wallet and Klever Exchange on Google Play and Apple App Store.
