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Crypto Boom In Sub-Saharan Africa Used To Offset High Inflation
Despite making up only 2.3% of the global cryptocurrency transaction volume, Sub-Saharan Africa is witnessing a significant rise in the use of crypto in everyday life.
From July 2022 to June 2023, the region received an estimated $117.1 billion in on-chain value, with centralized exchanges facilitating over half of all transactions.
Countries such as Nigeria, Kenya, Ghana, and South Africa are seeing high crypto adoption rates, driven largely by the need for a reliable store of value amid escalating inflation and debt.
Bitcoin dominates the Sub-Saharan crypto market, offering a hedge against rising inflation rates, like Ghana’s 29.8% surge in June 2022.
Yet, as Bitcoin’s value fluctuates, many are turning towards stablecoins for greater stability.
Nigeria, Africa’s largest crypto economy, has witnessed a 9% growth in crypto volume despite economic challenges, recessions, and a currency crisis.
The regulatory landscape is evolving, too, encouraging further growth.
South Africa has introduced a licensing regime for crypto businesses, and Kenya is considering a Central Bank Digital Currency.
Nigeria approved a national blockchain policy, and Mauritius enacted comprehensive legislation for new token issuance.
The future of Sub-Saharan Africa’s crypto economy seems promising, with increasing regulatory clarity and the growing necessity for digital currencies in the face of economic instability.
Crypto adoption in the region aligns with the original vision of Bitcoin, fulfilling a day-to-day need rather than serving merely as an investment tool. Read more here.
More than half of Turkey has turned to crypto amid a rapid 50% currency devaluation.
Fiat currencies eventually fail. From fiat to crypto, a whirlwind through past major currency fails.
Zucoins And Splitchain: Pioneering Crypto Solutions For Emerging Markets?
The dynamics of crypto adoption in Sub-Saharan Africa present valuable insights for Zucoins and its Splitchain network.
The network’s efficiency and zero transaction fees could appeal to users seeking stability amid economic instability.
Zucoins’ unique two-way transaction system further enhances user confidence by enabling the rejection of unwanted transactions, a feature that stands out in the current one-way transaction landscape.
Currently, with traditional crypto systems and even with most banking systems, they’re usually one-way.
You put the details in for a receiver and this account eventually gets the funds—without any ability for that receiver to reject the transaction.
This is especially a problem for crime and fraud detection systems, as a would-be criminal could deliberately send you an amount, tying your accounts into association with a criminal. As a result, many people get their accounts unsuspectingly frozen, whether caused by a legitimate claim or not, with little notice, followed by a long, highly stressful account recovery process (if successful at all).
In the face of rising inflation and uncertainty, residents of Sub-Saharan Africa are seeking financial alternatives.
Emerging cryptos such as Zucoins, with its capped supply, could offer a viable solution.
Splitchain network’s truth-based system, free from the 51% attack vulnerability that affects many cryptocurrencies, could provide an additional layer of security and reliability.
Given the region’s growing appetite for crypto solutions, Zucoins’ efficient and secure network could be a major draw.
They could foster trust and encourage adoption by ensuring compliance with regional regulations and actively engaging with regulatory bodies.
Their ongoing work towards becoming open-source and their commitment to decentralization align with regional regulatory trends, promoting transparency and accountability.
What’s more, the growing interest in altcoins in the region opens another avenue for Zucoins.
Zucoins and Splitchain can cater to this demand and attract a broader user base by offering a simple, user-friendly platform for diverse digital assets.
The network’s ability to support microtransactions could further encourage usage among individuals and small businesses, fulfilling a day-to-day need and ultimately aligning with the original vision of Bitcoin.
By understanding the unique economic and regulatory landscape of emerging markets like Sub-Saharan Africa, Zucoins and Splitchain can tailor their offerings to meet specific user needs, fostering increased adoption and paving the way for a more inclusive digital economy.
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All the best,
Peter & Rob
MyZucoins
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.