Africa is rarely mentioned as a major cryptocurrency market. However, recent trends indicate that it may move leaders out of their positions. In 2018, in just 9 months, more than 15 cryptocurrency trading platforms were opened in Africa. The trend has appeared a long time ago and is only getting stronger every year. When the bitcoin rate rose in 2017, the trading volume on African exchanges increased sharply. For example, trading volumes in Kenya on one of the sites in December 2017 rose to $ 8.1 million. Another company reported 2,000 BTC transactions in November 2017, when the price fluctuated in the $ 10,000 range. Approximately 37% of these transactions were made in South Africa. There are several reasons why Africa could be the next big cryptocurrency market. The Free TON team believes that cryptocurrencies and blockchain are key to unlocking Africa’s vast potential. Only blockchain is capable of transforming the continent, this technology will contribute to the growth and prosperity of all countries in the 21st century, giving everyone complete control over their finances.
Why cryptocurrencies are the future of Africa?
Firstly, Africa has very favorable conditions for the development of cryptocurrencies, moreover, they are able to solve some of the financial problems. Several countries on the continent are suffering from rampant inflation. For example, Zimbabwe and South Sudan are experiencing skyrocketing inflation. The massive use of TON Crystal would allow these countries to forget about inflation. Thanks to the concept of decentralization, cryptocurrencies offer a very lucrative alternative to the policies of African central banks. Central banks understand this and are already starting to test cryptocurrencies. The Central Bank of South Africa has been piloting the Ethereum blockchain for smart contracts. Secondly, the more active penetration of mobile phones into the continent is helping the population to better master cryptocurrencies and blockchain technology. As the financial services ecosystem evolved, Africa moved from building a physical banking infrastructure to a decentralized digital money platform. New blockchain-based companies emerge periodically. For example, a Kenyan company works with 60 banks across Africa and helps popularize blockchain technology in Africa. Thirdly, the threat of government regulation, which has recently led to a sharp deterioration in the situation in the cryptocurrency markets, is practically absent in Africa. Although states have warned their citizens about the dangers of investing in cryptocurrencies, regulators in African countries have decided to practically not interfere with trading on exchanges.
The complexity of the financial situation in Africa
The potential of African youth has been growing for a very long time, and now, when more and more young talents appear in Africa, the world is beginning to pay attention to it as a new favorable market for cryptocurrencies. In the cryptocurrency community, there was even an opinion that the “golden cryptocurrency age” of African development had begun. Africa, home to 226 million people aged 15 to 24, currently has the youngest population in the world. By 2045, the African workforce will be the largest in the world, giving the continent enormous potential to popularize cryptocurrencies and blockchain. A generation of young Africans wants to rely on new systems of finance, government, and technology, leaving the old, traditional ones behind. They want to create the future with their skills and resources. According to Google Trends statistics, African countries have repeatedly been in the lead in terms of the number of searches for “cryptocurrency”. This indicates an increasing interest in cryptocurrencies and their potential. In sub-Saharan Africa alone, there are about 350 million adults who do not use banks, which is 17% of the world’s population that does not use banks (there are about 2 billion such people in the world). For many, the opportunity to use the TON Crystal cryptocurrency as a unit of account is a great happiness. Primarily because it is not subject to hyperinflation, unlike some African countries. That is why the use of cryptocurrencies as a unit of account is the first step towards financial stability and independence in Africa. With the Free TON blockchain, Africans can gain access to systems that they previously did not have access to, such as microcredit platforms, etc. The Free TON blockchain can provide African people with opportunities they haven’t had in decades. Blockchain can also solve real-world practical problems in Africa, such as identity management and land ownership. Blockchain has long been tested for a variety of applications in the financial sector, including money transfers, payment settlements, and regulatory oversight. Due to the decentralized and transparent nature of the technology, it is increasingly being used in identity management. In addition, transparency, resilience, and visibility in every node of the blockchain is a useful tool for tracking and maintaining the integrity of information. Blockchain technology can provide people who have never used banking services with access to various services. For example, using dApps, people can get access to new ways to save money and pay bills, get loans, sell their own goods and services, and also get the opportunity to create their own applications or tools based on the blockchain. Instead of subjecting their financial assets to inflation, people can use stable digital assets, which allows them to gain more control over their funds and abandon a centralized system that does not provide any benefits.
Africa and innovations
Africans today are driving innovations that other countries in the world do not. For example, they make the minutes dedicated to communication via a mobile phone currency. This is the first continent in the world where people came up with such an idea. Africans are trying to invent and do things that no one else has done before. This is what will become the basis for the increase in popularity and the growth point of digital assets on the African continent. As Africa takes the lead in blockchain and cryptocurrency applications, the world will be closely watching its development. Africa is home to more than 1.34 billion people, and in the near future this number will increase to two billion people. The number of the working population is constantly increasing, in the next 10 years it will grow by 40%. While Western countries and the entire world are struggling with years of tradition, bureaucratic red tape and rules to make digital assets usable for mass use, African countries intend to change the situation with cryptocurrencies much faster. Most African governments have long been actively promoting the massive adoption of cryptocurrencies. Africa is one of the few places in the world that can introduce and use new technologies from scratch without destroying existing infrastructure. When you look at all the major countries, from the United States to European countries and China, they are worse off than African countries. They cannot quickly adapt to new technologies without having to rebuild everything that has already been built.
Cryptocurrencies and blockchain – the digital future
The future of finance is cryptocurrencies and cryptocurrency transactions on decentralized financial platforms. Right now, dozens of countries are working to create blockchain versions of their currencies. Obviously, it is only a matter of time before all transactions are transferred to the blockchain. It is those countries that understand this reality before others will get the advantage. Blockchain and cryptocurrencies are key to Africa’s potential. The Free TON team believes that the future of the world will be digital. The whole world will be computerized, it will be decentralized, control will be carried out using smart contracts and dApps . There is a life example. While some were selling music on vinyl records and CDs, others were selling ringtones and digital music. Digital music is still popular in the world, but CDs are not. Those who were selling digital music caught the spirit of the times and made much more money than those who sold physical media of music. The same thing happened with printed products. Digitalization has taken place in music, and the same will happen in the financial sector. Africa is already only a few steps away from the transition to an economy based on cryptocurrency and blockchain, instead of continuing to use fiat and subject to inflation.
Why Africa can only find financial stability in cryptocurrency?
Africa is the most resourceful continent in the world, and only cryptocurrency can be the solution to its economic problems and the path to financial stability. The continent also needs to solve not only economic problems, but such problems as, for example, a high level of illiteracy, poverty, and insecurity. Among these challenges, the most critical is poverty eradication. Over the past decade, poverty growth has accelerated, with about 42% of the population in sub-Saharan Africa living in extreme poverty. The biggest cause of poverty is an inefficient banking system across the continent. The commercial banking system is too complex for the majority of the African population. According to statistics, the money sent by African migrants to their home countries constitutes a huge part of their GDP. In 2017, almost 26% of Liberia’s GDP came from diaspora remittances in other countries. Having such a huge number of translations is very good for third world countries, but there is one problem. International remittances to Africa are very expensive for senders – so much so that they could significantly reduce poverty in some African communities. Using cryptocurrencies would save senders from such high fees. Cryptocurrencies do not belong to any particular country and are not controlled by anyone. Operations are carried out at almost a paltry price. Thus, the funds that senders pay as commissions can be sent to their families using cryptocurrency.
Why Africa can only find financial stability in cryptocurrency?
Africa is the most resourceful continent in the world, and only cryptocurrency can be the solution to its economic problems and the path to financial stability. The continent also needs to solve not only economic problems, but such problems as, for example, a high level of illiteracy, poverty, and insecurity. Among these challenges, the most critical is poverty eradication. Over the past decade, poverty growth has accelerated, with about 42% of the population in sub-Saharan Africa living in extreme poverty. The biggest cause of poverty is an inefficient banking system across the continent. The commercial banking system is too complex for the majority of the African population. According to statistics, the money sent by African migrants to their home countries constitutes a huge part of their GDP. In 2017, almost 26% of Liberia’s GDP came from diaspora remittances in other countries. Having such a huge number of translations is very good for third world countries, but there is one problem. International remittances to Africa are very expensive for senders – so much so that they could significantly reduce poverty in some African communities. Using cryptocurrencies would save senders from such high fees. Cryptocurrencies do not belong to any particular country and are not controlled by anyone. Operations are carried out at almost a paltry price. Thus, the funds that senders pay as commissions can be sent to their families using cryptocurrency.
Africans need a simple financial interface
The commercial banking system in Africa is too complex and the demands of the banks are sometimes beyond the reach of ordinary people. For example, to create a bank account, individuals must provide various documents and including tax information . Companies applying for loans almost always have to provide the bank with collateral and several guarantors. The cryptocurrency system is much less stressful and offers better conditions. All you need to do is create a cryptocurrency wallet. Once the wallet is created, a person can freely buy goods and services, exchange cryptocurrencies, etc.
Why Free TON Can Provide Financial Freedom?
The Free TON blockchain is vastly superior to other blockchains. It is not like any other project, an active community has been formed around it. This is the project that can give the financial world complete freedom. This is primarily due to the unique characteristics of the blockchain. Thanks to the shard infrastructure, the Free TON blockchain is capable of processing up to 1 million transactions per second. This blockchain has incredible scalability, no other project in the world has even similar characteristics.
