A recent report published by Ecobank Transnational Inc. noted the potential risks involved in cryptographic asset trading. The pan-African banking conglomerate praised the benefits associated with blockchain technology but also seemed apprehensive about its negatives.
The report stated, “African governments worry that if its citizens become overexposed to cryptocurrency investments, the repercussions of a future crash could be felt in the broader economy, hence their skepticism of licensing their use.” – Ecobank Transnational Inc.”
It also revealed that Swaziland and South Africa are two of the most crypto friendly nations of the continent with lenient regulatory stances. On the other hand, nations like Namibia has completely banned digital currencies.
One should know that RSA welcomed a new crypto trading platform named Bitfund. Joshua Miltz, CEO BitFUnd, claimed that his company would allow investors to trade in less popular and newer virtual currencies.
He informed that majority of crypto investors in RSA have only acquired bitcoin BTC and ethereum ETH. However, they are not sure about buying coins from the minor leagues as dealing in altcoins with an exchange is a pretty technical and lengthy operation.
Thus, the firm is focused on simplifying the whole procedure of purchasing altcoins while its developers have also been in compliance with regulatory framework managing crypto investment. The report further mentioned that there had been no distinct craze for the new technology in sub-Saharan Africa. Even after being warned by financial regulators about the risks involved, few locals have been trading digital coins continuously.
One primary reason given for Africa’s behavior is that it wants to learn from the mistakes committed by its neighbors. Thus, the continent is losing the advantage a first mover gets and might suffer for not entirely understanding the crypto space. Meanwhile, Ecobank has also completed an index to record the crypto regulation process in Sub-Saharan Africa.
As far as the Portuguese speaking Angola and French-speaking Benin is concerned, there have been no public announcements made about crypto regulation. Through these nations have shown no interest in crypto adoption yet they have a positive outlook towards blockchain technology.
Most shockingly, Congo, one of the least developed countries in the world, has joined hands with World Economic Forum to launch a pilot program. The blockchain based system will be tracking real-life details of the cobalt extracting process.
As per Google trends, Ghana, a country in West Africa, tops the list of nations that have searched about digital currencies and related commodities. Moreover, the nation has also witnessed the launch of Finchcoin. It is formally regarded as the first indigenized digital coin on the continent.
It looks like the continent, as a whole, is too scared to adopt a technology which can be used to uplift it from widespread poverty and underdevelopment. Even though the infrastructure and knowledge levels are not impressive, but a too safe attitude will again leave the continent behind in the race of new world technology. It would be better if a proper system for crypto regulation gets developed for a slow and steady improvement.