Africa is one of the places which misses the game of technology. The continent is more into trying to figure out how to tkeep what it already has, rather than thinking how to adopt new solutions.
In Africa, the people have numerous problems of trade and movement of money because of the borders that were created for them by the colonial Countries that still guides their ability to trade or move money around
In the region, there are still a lot of policies that date back to the 60s. According to the Afrexim bank and other international institutions, for African to grow as a continent the people must trade amongst themselves consistently. They must navigate the problems of movement of money and bring the unbanked people in their countries into an ecosystem that is easy, and accessible immediately.
And here, blockchain is one technology that needs to be defined, a concept which changes how people see trading and money: it helps solve some problems with Smart Contracts, security data solution, Cryptocurrency, and more.
This can also overcome inflation problems in Africa.
The rise of cryptocurrency in the continent was also caused by the eagerness to create an alternative to Western Union and international organizations that have employed blockchain technology to assist refugees.
With cryptocurrency, the intangible nature of the digital money means that no government or banks can physically remove the wealth of the citizens. This can be a paradigm shift which marks a monumental step forward into providing additional layer of securities for individuals.
At the time, Africa trades with the rest of the world at 66 percent, but only trades with itself at 11 percent.
Over the previous year, the African market has seen the emergence of more than 15 Bitcoin exchanges seeking to provide cheap and efficient trading services to African consumers. Some exchanges have expanded their services and have established an office in Africa to serve the new market and observe the demand of Bitcoin in several African countries.
Open-minded early adopters and innovators in Africa are also trying to change the game, and begin to create value for its citizens in the continent.
Local attempts like Nurucoin. Developed using ethereum's blockchain, the cryptocurrency is positioned to help the SME market in Africa, and aims to help African countries to trade more with each other.
Previously, other countries in Africa have put the idea forward to create their own cryptocurrency.
For example, Venezuela has The Petro. The cryptocurrency uses oil assets as collateral, with the price made similar to that of a barrel of crude oil.
In East Africa, local innovators have also introduced cryptocurrency systems to support cross-border transactions, using initiatives like BitPesa. In South Africa, cryptocurrencies are becoming particularly popular. In Nigeria, local traders and activists believe this technology presents an opportunity to democratize the economy.
Others countries include Ghana, Botswana, Zimbabwe and others.