In Africa, interest in cryptocurrency, a type of digital currency, is constantly increasing. Some economists believe it will be a disruptive innovation on the continent. Because cryptocurrency is internet-based, it is not limited by region; its transactions are recorded in a database known as blockchain, which is a network of connected computers that records transactions in a ledger in real time.

Bitcoin, Litecoin, XRP, Dash, Lisk, and Monero are among the major cryptocurrency brands around the world, but Bitcoin is the most popular in Africa. Investors think that Bitcoin, which was created in 2009 by a person or people using the identity Satoshi Nakamoto, will become the new form of financial transaction in the digital age.

There is great difference between cryptocurrency with, example, Visa or Mastercard, being that cryptocurrency is not currently controlled by the government, does not require middlemen, and transactions are carried out through the internet robots such BitQT allowing them to take place anywhere in the globe.

According to DW, Africa is rarely listed among the top cryptocurrency markets, but it may be on the verge of overtaking others. In a continent where mobile money is already widely used, virtual currency provides benefits to a young, tech-savvy population.

Africa is in a good position to benefit from the bitcoin explosion. It is home to an increasing number of flexible young professionals and aspiring entrepreneurs. Furthermore, significant unemployment in many African countries implies that young people are avoiding established sectors in search of new sources of income.

Because of the scarcity of jobs for school and university graduates, young people were drawn to virtual money. People can use the cryptocurrency system to start their own business, work for huge brands outside of their own country, and earn a living.

Africa’s burgeoning diaspora has also gotten on the bitcoin bandwagon in order to transmit remittances more cheaply across borders. That’s a logical decision. Bank transfers are too expensive for Africans in the diaspora transferring money home. It can be as high as 20%, but there are several cryptocurrencies that enable sending of money back to Africa basically for free.

BitPesa, a remittance provider established in Nairobi, is one of the most popular services. BitPesa accepts Bitcoin as a payment method for international transactions. This saves money by avoiding bank fees and avoiding the expense of currency conversion. BitPesa, a Kenyan company founded in 2013, permits virtual remittances transfers to and from people’ mobile wallets, where cryptocurrency is held, to both African and international destinations. As of December 2017, LocalBitcoins.com in Kenya recorded trading volumes of over $1.8 million, demonstrating the business’s profitability.

Others, specifically cryptocurrency-based remittance businesses, are springing up across the globe. Abra, which operates in Malawi and Morocco, GeoPay in South Africa, BitMari in Zimbabwe, and London-based Kobocoin, founded by Nigerian entrepreneur Felix Onyemechi Ugoji, are among these businesses. The Plaas App is a mobile app that allows farmers to keep track of their stock on the blockch.

The fact that African countries have yet to regulate cryptocurrencies could be fueling its spread on the continent. Africans without access to banks or who live in politically unstable nations may be drawn to bitcoin out of fear of the banking system collapsing or the government appropriating money arbitrarily. Traditional banking and financial services are plagued by procedural delays, which Bitcoin transactions assist to reduce.

Some African countries are scrambling to enact new legislation in order to prepare for a future in which cryptocurrency is the standard. Nigeria, Africa’s largest economy, is leading the way, having recently legalized cryptocurrencies and issued regulatory guidelines for crypto-based firms and start-ups.

Various African countries are looking forward to enact new legislation in order to prepare for a future where cryptocurrency is the standard. Nigeria, Africa’s largest economy, leads the way, having recently legalized cryptocurrencies and issued regulatory guidelines for crypto-based firms and start-ups.