The Current State of Bitcoin’s Popularity in Nigeria and South Africa

It is no secret that cryptocurrencies are quickly gaining popularity across the world. In Africa, there are two main countries that have seen a huge surge in the trading and use of cryptocurrencies. Today, Nigeria and South Africa are among the top 20 countries in global cryptocurrency adoption. There are many reasons why this is happening. Let’s look at the current state of Bitcoin’s popularity in Nigeria and South Africa and some of the reasons for a surge in adoption.

How Popular is Bitcoin in Nigeria and South Africa?

According to Triple-A, Nigeria now ranks 8th in crypto ownership by country with over 12 million crypto owners. On the other hand, South Africa is not far behind ranking 13th with just over 6 million crypto owners. Evidently, Africa is now a hotbed for cryptocurrency trading and use. As such, there are now many companies that allow people to buy and sell cryptocurrencies in Africa. Some companies even offer promotions, like a $30 welcome bonus, to give new clients a head start. 

 

Interestingly, the rise in popularity of Bitcoin in these countries is not only in trading and ownership. In Sep 2022, a Coindesk report suggested that Sub-Saharan Africa is now the leading region in crypto retail payments of less than $1,000. There seems to be an increasing need for the use of cryptocurrencies in day-to-day life. While Africa has a plethora of payment applications, cryptocurrencies are seeing a gradual rise in adoption for the convenience and control they offer to consumers.

 

Even with some restrictions on Cryptocurrencies in Nigeria, Bitcoin’s popularity has not gone down. In 2021, the Central Bank of Nigeria banned all banks from participating in Crypto transactions as it does not recognize cryptocurrencies as legal tenders. This only propped up the peer-to-peer market in Nigeria. In contrast, the FSCA in South Africa recently declared crypto assets as financial products and seeks to regulate them. 

Reasons For The Rise In Popularity of Bitcoin In Nigeria and South Africa

Bitcoin and other cryptocurrencies solve a lot of problems associated with traditional payment systems. Currently, almost every African country has a mobile-based payment system operated by a private company. Unfortunately, there is not much harmony between the different payment systems making cross-border transactions a nightmare. 

 

Bitcoin helps solve this problem by allowing consumers to have full control over transactions. People can send funds anywhere in the world at any time. Even with restrictions and regulations, participants can always trade on a peer-to-peer basis whenever they please. The more the government tries to control Bitcoin and other cryptos, the more consumers seek freedom and less control.

 

However, this can be a double-edged sword. Under regulation can lead to a rise in scam operations. Already there have been high-profile cases of scam operations that have been exposed. Additionally, some crypto projects do not have the best operating policies which leads to collapse and eventual bankruptcy of the projects. Still, consumers adopt Bitcoin alongside other cryptocurrencies while fully aware of the risks involved because, to them, the merits far outweigh the risks. Besides, there are a lot of people that view Bitcoin and other cryptos as an investment opportunity that could earn them profits.

Closing Remarks

As it stands, Bitcoin’s popularity in Nigeria and South Africa is on the rise. Some of the owners of Bitcoin see it as a currency to exchange for goods and services. This has seen a rise in small retail payments and peer-to-peer transactions in Sub-Saharan Africa. Additionally, a lot of people are seeing Bitcoin as an investment opportunity and are trading it for profit. Further, some unbanked could simply be seeing Bitcoin and other cryptocurrencies as an opportunity to receive traditional financial services.

3 new ways blockchain technology is being used in 2023

Blockchain technology is revolutionizing the way people invest and how businesses work. A blockchain is a distributed ledger which facilitates transactions that are publicly accessible, cannot be amended and is fully transparent.

Due to the amount of security enjoyed by people sending digital assets on the blockchain, it has become a multitrillion-dollar industry. A decentralized casino is one of the latest ways that blockchain technology has been implemented to streamline successful business ideas and become even more transparent and secure.

It is arguably the most significant innovation of the 21st century. As a result, many industries and sectors are looking to implement it into their business models on all levels.

Blockchain companies are continuing to innovate and the influence of technology is becoming more apparent. Today, we will examine three critical ways individuals and businesses will use these fresh innovations over the next 12 months.

1. Banking

Bitcoin was created in 2008 on the brink of the financial crisis. When the anonymous web user Satoshi Nakamoto released the whitepaper, nobody could have pictured where this technology or the price would be just over a decade later. Blockchain technology allows you to send digital assets to someone, peer-to-peer, without having a bank overseeing the transaction.

It is no secret that banks aren’t huge fans of cryptocurrency. Over the last decade, there have been many articles where big bank CEOs have played down the influence that cryptocurrency, digital assets and blockchain technology will have in society.

As blockchain technology improves, some of the biggest global economies are moving towards digital tokenized versions of their currency. For example, the US dollar already has a token version of its currency. This year, the Australian National Bank also minted its own tokenized version of its money.

As more countries move towards digital versions of their currency, countries that haven’t used it before will be exploring new features and new ways they can implement it to grow their economy.

2. Digital security

When blockchain technology was first created, the primary purpose was to develop a platform to facilitate a secure way for two people to send payments to each other. As a result, the blockchain is very safe because it is a ledger that anybody can access at any time. In addition, it cannot be amended due to the way it operates.

If illicit funds are being funneled through various cryptocurrency wallets, they can all be tracked easily on public record. One of centralized finance’s issues is that it can be challenging to follow when money is sent abroad or to a country with different banking laws.

This isn’t an issue with blockchain technology. Despite the mainstream narrative that anonymity encourages criminals to use cryptocurrency to launder their profits, everything is viewable. The fact that transactions can be easily viewed, and all transactions are available on the blockchain illustrates that security is paramount as a built-in feature.

3. Blockchain-based applications

The development of blockchain-based applications is accelerating in sophistication. With so much money involved in blockchain technology and the wider cryptocurrency sector, software development teams are working around the clock to build applications that can help individuals and businesses.

These businesses offer a secure and transparent way to store data and execute transactions without worrying about transparency or security issues. Companies in the healthcare, finance and law sectors are all expected to transform massively due to blockchain technology.

Instead of having drawers and cabinets full of paper files, blockchain technology can help secure confidential records without any other requirements. It is predicted that thousands of companies will be using blockchain technology moving forward.

Conclusion

As more businesses begin to use digital currencies, the adoption of blockchain technology should accelerate further. Some analysts have compared it to the dawn of the internet in the mid-1990s.

It remains to be seen whether cryptocurrencies and blockchain technology will revolutionize the way society works. Even though it has been around since 2008, the technology is still very much in its early stages, and the technology and opportunity are exciting. Despite this, people who operate within the space should also exercise caution regarding their investments.

As this decade progresses, the number of companies and individuals utilizing blockchain technology will likely expand exponentially. We have only touched on three things today, but we could have easily expanded this article to include two dozen ways blockchain is set to change the landscape of our society over the next decade.

 

 

5 crypto regulations to be aware of in 2023

One of the myths around cryptocurrency is that the industry is entirely unregulated. This seems to stem from the decentralized nature of crypto and the fact it is not controlled by central banks or governments. The truth is though that the crypto sector is regulated in several ways and operates with the safety of investors in mind.

This can be seen in how crypto whitepapers give ample details to allow investors to make an informed choice beginning when a new coin is launched for example. Despite this, 2023 looks to be a year where more regulation will come into the cryptocurrency market. So, what are five of the most important new rules to keep an eye out for?

1. Taxes on binary options

One regulatory change which might be discussed in 2023 is a binary options tax. At the moment, most countries do not impose such a tax, so using crypto to trade binary options online is tax-free. 2023 could be the year this changes though, as there is a big debate over whether income from trading binary options should in fact be taxable.

While this change might not relate solely to the crypto industry, it could impact any crypto trader who also invests digital cash into binary options. It may also be something which could affect crypto investors in general.

If the powers that be decide that binary options are classified as gambling and are still not taxable, it could mean people who trade other assets, such as cryptocurrency, will fight to claim the same thing. If this were to be a regulatory change which happens in 2023, then it would result in traders not being taxed on profits they make from cryptocurrencies.

2. MiCA rules in Europe

Although there may be new regulations expected in 2023 for the US crypto sector, the global nature of this industry means it is also sensible to keep an eye on things further afield. Perhaps the biggest story coming up soon in this regard is the planned Markets in Crypto-Assets (MiCA) rules from the EU.

This is set to be one of the very first pieces of legislation to regulate the global crypto market and is set to include new rules around everything from tighter consumer protection to how crypto mining impacts the environment. MiCA is expected to come into force in early 2023, so it is worth being aware of.

3. Tightening up of AML rules in crypto

Just as there are lots of cryptocurrency whitepapers in place to protect investors, the sector also employs anti-money laundering (AML) rules to operate in an ethical manner. It is expected that 2023 will lead to much tighter anti-money laundering laws being introduced across the global cryptocurrency industry.

In terms of what to look out for this year, the so-called ‘travel rule’ is the big change. This basically means any intermediaries in the transfer of crypto assets, such as crypto exchanges, covered by these rules must share additional information about other parties in the transaction with the relevant authorities. After being ratified by the Financial Action Task Force (FATF), this is being rolled out in several jurisdictions globally in late 2023.

4. Promotion of crypto assets

Many people expect to see a major clamp down on how crypto assets are allowed to be advertised in 2023. It is believed this will come into force in many global crypto markets in an effort to mitigate any potential harm to consumers from investing.

This is something which we have already seen in locations such as Spain and Singapore. It is therefore sensible to think other markets, such as the USA, might follow their lead and put more rules in place around advertising crypto investment.

5. More legislation around stablecoins

Anyone who invests in this market knows there are lots of coins around to put money into and various types you could trade. Stablecoins have received a lot of publicity lately as a less volatile way to enter the market. 2023 could lead to more regulation being applied to these coins though.

The Biden government in the US has already completed a report looking into this sort of coin. It is thought that the findings of this report will be used to bring in new rules around stablecoins in 2023. Many think this will involve stablecoins having their backing reserves audited frequently and regulated for greater transparency. This may also be something we see happen in other crypto markets on a global scale.

2023 could be a big year for regulation in crypto markets

Although there is current legislation within the cryptocurrency markets in places like the US, it seems that there is a real desire for more regulation. Due to this, 2023 could be a big year in this regard and lead to the above new rules coming into effect.

 

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