Cryptocurrency as an Alternative to Remittance Systems

Sub-Saharan Africa has a huge remittance market, as people who left their home countries send billions of dollars every year. Nevertheless, they have to use slow and centralized remittance systems. Furthermore, such systems charge transaction fees as high as 9%. Interestingly, mobile payments are even more expansive than centralized remittance systems. Moreover, mobile payments charge a fee of around 11%. Cryptocurrency offers a number of advantages compared with centralized remittance systems and mobile payments.

There are other problems as well. For example, high inflation rates in some African countries and the lack of clarity regarding the crypto regulations. Moreover, almost 60% of African governments must clarify their stance on cryptocurrencies.

As can be seen from the examples mentioned above, there is no shortage of problems. Nevertheless, despite the lack of proper infrastructure and regulations, Africans are willing to invest in cryptocurrencies. Moreover, many companies want to enter African markets.

Cryptocurrency ownership and new opportunities

Furthermore, African countries have a huge potential when it comes to developing the local crypto industry. Let’s have a look at the report published by Arcane Research. Thanks to this report it is possible to learn more about cryptocurrency ownership among the local population.

Interestingly, African countries have some of the highest cryptocurrency ownership rates around the globe. For example, 13% of internet users in South Africa own or use cryptocurrencies. Moreover, South Africa ranked third around the world.

In the most populous country of Africa, Nigeria 11% of internet users’ cryptocurrencies took the fifth spot.

Interestingly, when people search for the term cryptocurrency, Uganda, Ghana, South Africa, and Kenya feature in the top-10 countries on Google.

Moreover, cryptocurrency ownership in African countries is more prevalent than in other countries. The worldwide average among internet users stands at 7%. Thus, governments should work harder to attract more investors who are willing to enter the local market.