People in Africa have been able to use Bitcoin for a number of tasks, from buying groceries and other necessities to investing money into their communities. In the past year alone, over $100 million worth of bitcoins has been sent through mobile wallets to people living in Uganda, Tanzania, Kenya, Ghana and Nigeria. These innovations are helping people gain access to financial services that they previously could not manage without significant capital or technological adoption.,
“How cryptocurrency works” is a question that I am often asked in my classes. Cryptocurrency is the world’s first decentralized digital currency, which means it does not exist in any physical form. It uses cryptography to control its creation and transactions. Read more in detail here: how cryptocurrency works.
During natural disasters in Africa, Bitcoin is being utilized as a fail-safe technique.
The eruption of the Mount Nyiragongo volcano in the Democratic Republic of the Congo in May, according to TechCrunch, resulted in widespread relocation of residents in the surrounding area.
During the confusion of the scenario, Bitcoin was utilized as a payment tool to keep the local economy running.
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Gloire Wanzavalere, the creator of Chainglob, a crypto news channel, commented on the issue, saying he went to a makeshift refugee camp to see what he could do to assist.
Wanzavalere observed that the majority of individuals had exchanged their phones, and therefore their ability to deal in cryptocurrency, for food. Many people had left behind their stuff, including identification papers, in their haste to flee danger. When it came to opening bank accounts and purchasing new mobile gadgets, this proved to be a challenge.
Wanzavalere was inspired by the Bitcoin Beach initiative in El Salvador, which proved that ordinary people, even those in desperate situations, can utilize Bitcoin, giving him the impetus to do the same in the aftermath of a natural catastrophe.
“Using bitcoin to help them was a more impactful deed than any marketing effort.” That’s when we said to ourselves, “OK, we’ll do this in Congo.”
He urged local businesses to accept Bitcoin, and transactions were speedy and inexpensive owing to the Lightning Network. As a result, individuals who did not have access to fiat received a lifeline.
Cryptocurrency inflows into Africa are at an all-time high.
Crypto, as an alternative to conventional banking in Africa, has gained traction in the previous 12 months as a result of several causes such as failing financial heritage infrastructure.
Weforum.org reports that more than half of Africans, or 57 percent, do not have access to financial services. Bitcoin popularity has soared thanks to a youthful, tech-savvy populace.
Africa’s portion of the global crypto industry is the lowest by market size, according to data from on-chain experts Chainalysis. Peer-to-peer (P2P) volume has increased by 1,200 percent in the year leading up to June 2021, making Africa the most important location for P2P trade.
Weforum.org is the source for this information.
“In terms of actual statistics, this corresponds to $105.6 billion in crypto assets between July 2020 and June 2021, a 1,200 percent increase in crypto value.” Using this criteria, Africa has surpassed all other areas in terms of transaction volume on peer-to-peer (P2P) payment networks.”
Africa will overtake the rest of the globe in the next decade, according to IOHK CEO Charles Hoskinson, owing to blockchain and cryptocurrency adoption rates.
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