It has provided many across the continent with a way of finding a level of stability within the money that they have. Although digital currency can be highly volatile on its own, local currencies can usually be impacted by inflation that can sometimes be out of control. With some cryptos being pegged to the US dollar, it gives them a chance to retain as much value out of their money than if they were to leave it in their home currency.
At the same time, there have been many other benefits that have been obtainable when using cryptocurrency. Much of the continent’s population is unbanked. They don’t have access to traditional forms of banking, making it difficult for them to be paid or to save. With cryptocurrency, they don’t need to have an account. They can use funds in the same way as if they did, whether it be purchasing goods, paying for services, or enjoying favorite pastimes like wagering at the top crypto casinos that offer bonuses when virtual currency is used.
Its decentralized nature is also a huge positive for many, as it means government control doesn’t exist. With so many countries across Africa often struggling due to political concerns, which can lead to financial instability, its decentralized nature helps to keep its value as high as possible.
Trump’s presidential election making waves across Africa
Although it may be a world apart, the US presidential election is a significant event for many reasons. For Africans, it may have been incredibly significant regarding cryptocurrency and the future of digital coins across the continent.
Donald Trump is known to be an advocate and supporter of crypto, having alluded to several crypto-friendly moves within his campaign. This has led to a positive trend being experienced globally across the market, and Africa appears to be following its bullish approach.
Many Africans have expressed excitement following Trump’s election, especially as there has been a surge in value regarding digital currency. There is a belief that his presidency can help to create a more favorable global picture, which will potentially benefit them.
Governments in Africa are becoming concerned
As more and more young people are continuing to adopt and embrace cryptocurrency for daily purchases across the continent, it’s becoming a concern for many governments across Africa. As more use it, it will only further contribute to a potential collapse of their already struggling currencies, as they are being used less and less.
Indeed, it’s an issue that could affect local economies, aside from the political concerns that often make their own economy extremely volatile. At the same time, it becomes very difficult for countries to control what the digital coins are being used for.
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Due to their decentralized nature, the government cannot regulate what is being used and how it is. This can cause concern for financial institutions and the government, as they have no means of tracking it.
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