Cryptos Empowering Developing Countries

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There is a lot of discussion on what defines the value of a cryptocurrency.  It seems that some of the value is driven by costs and inefficiencies in traditional banking.  Consumers are becoming more open minded in the way that they wish to transact and looking at alternative means transact across borders.

Africa constantly needs to look at ways to trade and compete with global markets.  Perhaps making it easier for the international consumer community to trade with Africa (by bypassing the traditional financial institutions) would assist with making the continent more competitive.

I came across a really great article where this is happening in Nigeria.  Interestingly, Nigeria has the world’s third largest Bitcoin holding as a percentage of GDP.  The global financial system is too slow and cumbersome and they are hit with heavy fees for swapping currencies.

A consideration would be a “Crypto for Africa” for internal trading (i.e. between Nigeria and Zimbabwe) but this may hinder global exposure.  So it seems the likes of Bitcoin (and potentially Ripple with its main driver being low-cost, fast inter-currency exchange) could assist in making the continent more agile.

I came across this article which provides good examples of some of the challenges https://www.newsbtc.com/2018/02/08/nigerians-continue-to-turn-to-bitcoin-when-established-financial-institutions-wont-help/

 

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