Often, how a cause or goal is perceived will determine the direction it takes. Globally, most governments have a very poor understanding of blockchain technology and cryptocurrencies. The technology space has been consistently limited by unfriendly policies and laws designed to stunt the growth of the crypto ecosystem.
What are regulations?
Cornell Law School’s legal information institute defines a regulation as an official rule. An example would be government or certain administrative agencies that have authority to control or conduct within their areas of responsibility. Legislative authority has been delegated to these agencies to create and apply the rules, in other words, to “regulate”.
Blockchain technology and cryptocurrency platforms have faced a major challenge as most of them are located in countries where the government of the day makes it difficult for the projects to function at full capacity. This has hindered the speed at which the projects can reach greater heights through mass adoption.
If the correct regulatory framework is in place, Africa can leverage the potential of blockchain technology and cryptocurrencies to a greater extent than ever before. In the long run, the adoption of cryptocurrencies in Africa would be accelerated if the following suggestions were considered by governments in terms of regulations.
- Due to the constantly evolving nature of the cryptocurrency world, one of the biggest challenges is the lack of proper education in some African countries. Because the African education system has a low literacy rate, governments can legislate to implement educational policies that include blockchain technology and crypto currency. On the continent of Africa, this would go a long way toward bringing basic education to the most vulnerable.
- KYC, the literal translation of Know Your Customer, refers to identifying every individual using cryptocurrency so that money laundering activities, drug trafficking, and other illegal activities can be stopped or monitored.
- Increasing the development of blockchain technology hubs can help to strengthen the drive for crypto currency adoption on the African continent if the government provides the necessary support. It is the case in countries like Ethiopia and Rwanda that are leading the charge in securing government support for blockchain projects such as Cardano. In practice, these would encourage young developers to become more creative and deliver their projects in a more sustainable way.
A limited understanding of how the blockchain and cryptocurrency worked had led to several clampdowns on blockchain technology projects across Africa in the previous years. In spite of this, blockchain projects are experiencing a surge as a result of increased knowledge, which has hitherto led to the creation of central bank digital currency (CBDC), with Nigeria and South Africa leading the way within the African continent.
Klever, in its distinctive way of deploying educational content to its teaming users, would be glad to support any government that would consider the need to spread adoption in Africa in order to get people more educated in Blockchain and cryptocurrency adoption. As a result, there will be financial freedom and human capital empowerment for the people, allowing them to escape poverty and live a wealthy life.