Crypto adoption in Africa has begun increasing rapidly. The idea of a cryptocurrency local to specific African nations has been explored by some companies. One thing is for sure – crypto transactions in Africa have seen a sharp increase over the last year.
The surge in popularity of cryptocurrencies has contributed to the opening of at least 15 new trading venues in South Africa within the past year alone. And peer-to-peer marketplaces also recorded a surge in trading volumes as Bitcoin’s price reached historic highs at the end of last year.
Luno, a global exchange and crypto wallet, reported that more than one-third of all its transactions in November of 2017 (when 1 BTC was equivalent to about $10,000 USD) occurred in South Africa. This suggests that crypto in Africa is already thriving and stands to capture an even larger portion of the crypto market share in the years to come.
A Unique Crypto Scene in Africa
Some crypto commentators have even suggested that Africa ought to have its very own cryptocurrency.
Most cryptocurrency enthusiasts would agree that any sovereign nation-state would do well to transition away from central bank fiat currencies and into crypto. Such a transition would ensure that a nation’s economy would no longer be beholden to the whims of central bankers.
Many African nations have already experienced first-hand the potential pitfalls of fiat currencies. This is a significant factor leading to increased adoption of crypto in Africa.
Nigeria, South Sudan, and Zimbabwe, in particular, have all been feeling the effects of runaway inflationfor some time now. The potential of a decentralised alternative to fiat currencies becomes appealing when the policies of central banks have torn your country’s currency asunder.
A Universal Crypto in Africa?
In fact, the creation of an Africa-centric cryptocurrency has already been put in motion by a company called Trapeace Holdings. The plan is to introduce a coin called Africa Master Coin.
Africa Master Coin could be adapted to different African countries and pegged to the value of the existing fiat currency.
A coin of this nature already exists in America and is called ether (USDT). One Tether is intended to be equivalent to one US dollar at all times. Crypto in Africa could follow similar standards.
For example, in South Africa, Africa Master Coin would be pegged to the South African Rand. 10 Rand might be equivalent to one Africa Master Coin, and this would become the fixed rate.
With or without implementation of an idea like Africa Master Coin, however, it seems obvious that crypto adoption in Africa continues to gain significant ground.
The founder and CEO of the Sun Exchange (SUNEX), which aims to digitize solar energy in South Africa, has said that adoption of crypto in Africa is not only inevitable but is already happening. He notes that Bitcoin has already achieved significant use levels on the African continent. In his opinion, there should be a push for further Bitcoin adoption rather than the creation of new currencies.
As a final word of caution, the people behind Africa Master Coin have thus far chosen to remain anonymous, and the Trapace website has yet to be confirmed as legitimate. So, while this specific example has not been confirmed, the concept is definitely being grappled with.
Avesta Crypto in Africa
Avesta will be a prime contender for a significant portion of the market share for crypto in Africa. With low fees, fast transaction times, and a user-friendly interface, citizens of Africa and the world will embrace platforms like Avesta with open arms.