The use of different cryptocurrencies as a payment substitute is fast spreading across the globe. The African market space is not being left behind in this developmental growth. According to a recent survey and research work, the use of digital technology as a payment method is predominant in sun-Saharan African countries. Ultimately, this has caused an upward trend in the way business is being carried out, and payment is made for transactions.
From Google trends data, it shows that Lagos, Nigeria, is currently topping the continent in the volume of online search for bitcoin. This data ultimately shows the high level of interest in the cryptocurrency. The city, with approximately 21 million citizens, haven’t equated a tangible adaptation ratio of the trending technology still.
This growing trend is evident in the frustration associated with the payment system and is obviously in search of an alternative.
Cryptocurrency as a preferred dollar substitute
Due to the different issues associated with centralization system of payment, there has been the need for a faster and easier way for payment. This is evident in the use of bitcoin and other cryptocurrencies as payment options substituting the dominant dollar.
Paypal and other payment systems have seized operations to some West African countries, chiefly Nigeria, due to some cyber-related issues. This, coupled with the high rise of unemployment in the region, has caused the youth to freelance and explore other means of payment. The Bitcoin and other cryptocurrencies have since been the viable payment substitute.
Together with the fact that the cryptocurrency payment system is quick, secure, and autonomous, the freelancing communities in these African countries are enjoying the full use of the cryptocurrency payment system.
The mobile money market share
The cryptocurrencies are also bullying the mobile money market at their game. According to a report from the world bank focused on Fintech in sub-Saharan Africa, the use of mobile money accounted for about ten percent of the GDP.
There are a number of innovative developments which is poised to rival the mobile money platforms. A well-known platform, Cointext, innovatively allows its users to send Bitcash through text. The founder who doubles as the chief technology officer, Vin Armani, believes his platform will rival the mobile money platform in a short period of time. This platform is available for use in South Africa.
This company is working to make its platform an African movement first before moving on to conquer the global market. The use of cryptocurrency is becoming easier and is well poised to revolutionize the payment system even through simple text messaging payment systems. The different platforms are also developing ways to integrate with mobile money platforms in order to make payment faster and easier.
Cryptocurrencies and its investment directions
There is a scramble for the different cryptocurrencies, most especially Bitcoin, as an investment opportunity. Although the bitcoin and other cryptocurrencies are still unstable in terms of their price, the future implications and use of these cryptocurrencies are also glaring to the African market.
Although some Africans still view the bitcoin and the other cryptocurrencies as a get-rich-quick scheme, the majority have taken their time to understand and work towards properly investing in the cryptocurrencies for proper long-term investment opportunities.
Summing it up
The different citizens residing in African countries are beginning to catch up with the rest of the world in terms of technological innovation and development. This is evident in the use of the bitcoin and the other cryptocurrencies being developed.
However, the fear of the unknown still prevents a considerable number of people from joining the innovative road to self-sufficient financial payment system through crypto payment.