The use of cryptocurrencies and their popularity is increasingly growing among the countries falling within the continent of Africa.
Apparently, the history of African countries and their regulatory frameworks have always remained turbulent for one pretext or the other. Yet the use of cryptocurrencies has been largely adopted by African countries.
Yet the regulatory framework for digital currencies are not in place. This is allowing the crypto users and investors to involve in the business without any backing of their respective governments. Currently, the most devastating factor which has hurt the economies and crypto business in these countries is the Covid-19 pandemic.
Many suggest that the drafting of the crypto regulatory framework within sub-Saharan countries is an impasse. But Covid-19 is not the main concern which is not allowing the governments to form any regulatory framework. The hurdle seems to be on the side of the regulators where the major reason being lack of education regarding the cryptocurrencies.
Andrew Nevin who is an economist at PricewaterhouseCoopers of Nigeria also commented on the regulator’s inability in producing regulatory framework. While speaking to Cointelegraph he said that in various parts of Africa regulators are self-restraining themselves from doing anything. This is because lately incidents of crypto frauds were witnessed within these countries. In addition, he said that due to such frauds the authorities are now cautious and would not want to rush.
In many countries of Africa, there is a lack of will on the part of the governments. They have not yet arrived at any stance towards digital currencies.
Despite all these odds, yet the use of the internet is growing increasingly within these countries. Countries such as Nigeria is leading the countries within the continent from the front by adopting innovation and technology. Google also confirmed that most of the searches relating to “Bitcoin” are coming none other than from African countries.
Chainalysis’s recently published report shows that Nigeria, Kenya, and South Africa are 3 top countries within Africa for using cryptocurrencies. In June the three countries collectively transferred cryptocurrencies worth US$ 316 million approximately.
No doubt that the number of crypto users and investors are growing fast within the continent. One way or the other the governments will have to bring forth a regulatory framework. They cannot remain neutral forever.