The cryptocurrency market in Africa is growing at an interesting rate. Some countries are leading the continent to decentralised currencies with policies and support for cryptocurrency, and this has been a huge boost to crypto startups. It has led to an ecosystem where any ‘startup will get the support and market it requires to grow.’ The continent is investing in cryptocurrency because it missed out on the previous transformations. It missed the industrial revolution, the agriculture revolution, and many more. Africa should not miss the cryptocurrency revolution, the next digital transformation.
Benefits of the crypto revolution
For starters, it will make financial management more transparent. It will lead to a situation where corruption cases and embezzlement will reduce. These are the two main challenges affecting the African economy. Leaders in Africa are corrupt and have offshore accounts. The second advantage is that it will lead to decentralisation in the financial sector. This will reduce the influence big corporations and dictatorship governments have on the economy.
Countries supporting crypto startups
Some governments are helping ‘cryptocurrency startups get the ecosystem’ they need. The first is the Central African Republic. Apart from legalising Bitcoin as a legal tender, the country also offered cryptocurrency regions where startups have opportunities to set up their practices. C.A.R. government has offered opportunities for any startup that wants to mine cryptocurrency. Startups such as ‘Mara’ have already started their operations in the country to develop and decentralise its economy. Moreover, other countries are helping provide the policies and the ecosystem required. This attracts foreign investors and the creation of cryptocurrency and blockchain startups. They include;
- Nigeria
- Mozambique
- Kenya
- Morocco
Nigeria and Mozambique
These are countries with a huge potential to increase cryptocurrency adoption. Nigeria is one of the largest cryptocurrency markets in Africa. The problem the country had was with its internet connection. Major cities have good internet connections, but rural areas have poor internet connections. This has been a huge issue for years. Meanwhile, Mozambique is trying to improve the infrastructure required to entice cryptocurrency investors. These two countries have already given Space X’s internet company Starlink the licenses to offer their services in the countries.
Kenya and Morocco
Secondly, Kenya is another country leading the charge in crypto adoption and the market for P2P cryptocurrency transactions. The country’s largest energy production company is considering working with the government to support cryptocurrency mining. The main reason is that the organisation produces more energy than is consumed in the country. Selling the energy produced through geothermal will help in cryptocurrency mining and reduce maintenance costs. This will offer a new source of income for the company and the country.
To conclude, Morocco offered cryptocurrency miners territory to set up their mining operations. The Dakhla region, south of Marrakesh, will serve as a cryptocurrency mining site. This will help boost cryptocurrency adoption. It will also offer a good ecosystem to startups in the region.
