How is Africa benefiting from crypto?
The crypto market experienced a huge surge of popularity in recent years, especially after the latest bull market phase, which started after the Bitcoin halving and subsequent bull cycle in 2020. It was the longest bull cycle to date, with the greatest results not just for Bitcoin but for many other cryptocurrencies that have experienced a rise in their value during this time.
One of the main results of the latest bull cycle on the market was the growing number of cryptocurrencies and many other crypto projects, as well as the number of businesses and famous brands that accepted crypto payments.
At the same time, governments across the globe became aware of the power of crypto and made appropriate adjustments to their policies that further supported the adoption of cryptocurrencies. In this article, we will take e a look at how Africa, in general, is benefiting from the mainstream adoption of crypto.
In the gaming sector, there are multiple opportunities for integrating cryptocurrencies. For example, cryptocurrencies can be used successfully for in-app purchases. Actually, there is a rise in mobile games that integrate cryptocurrencies and offer this option to gamers.
Beyond the rise of crypto games in the gaming sector, actually many iGaming brands and online casino sites accept crypto payments. Casino sites typically stay on top of the latest technological trends because they serve a worldwide audience of casino players and want to be able to provide the best possible experience on their site due to the highly competitive nature of the market.
This is why they have jumped on the crypto bandwagon during the bull cycle and decided to accept crypto transactions on their platforms. It’s also beneficial for them since it gives them an opportunity to connect with a new target audience of crypto users.
It’s worth noting that between July 2020 and June 2021, there was a rise in crypto transactions in sub-Saharan Africa worth over $100 billion. This is good enough proof that the popularity of cryptocurrencies has surged, and we can expect an even higher number of crypto transactions in the future.
But one important aspect of crypto transactions is that they are based on a blockchain network which is a peer-to-peer based, decentralized database, and it functions without the support or influence of any external authority. Hence, it can become a useful solution for the banking sector, especially for peer-to-peer lending, since cryptocurrencies are distinguished by low transaction fees, short processing times, and total anonymity of the users.
The use of crypto will boost cross-border transactions thanks to the lower fees attached to the crypto payments. But what’s more important is that cryptocurrencies can expand the opportunities for financing underserved markets since the blockchain-based solutions are independent of the control of third parties. For example, cryptocurrencies can become the basis for affordable mortgages in some communities.
In conclusion, it’s expected for cryptocurrencies to become the dominant payment solution in the future, not just in Africa but also on a global scale. It is a safe, easy, and fast way to make payments without extra costs and sharing your financial data online. At the same time, there are many opportunities for cryptocurrencies to revolutionize different industries, from entertainment and healthcare to the financial sector.