Cryptocurrency adoption rate in many parts of the world is high, but that is not the case in Africa even though bitcoin is one of the widely searched words online as reported by Google Trends. The high search volume is a sign that most people in the continent are interested in digital currencies.
Low Cryptocurrency Adoption in Africa
Lack of awareness and strict regulations that make it impossible for people to invest freely in their preferred cryptocurrency is one of the causes of the low adoption rate. Expansive use of mobile money transfer is also another contributing factor.
As mentioned earlier, Bitcoin is one of the most searched words on Google and other search engines have the same statistics. The three largest digital currency markets in Africa are Kenya, South Africa, and Nigeria.
At the time of writing, there are several cryptocurrency exchange platforms in the continent and some stores are already accepting bitcoin as a mode of payment.
However, despite having the highest interest in the world, Africa still lags behind other continents in terms of adoption and use of various cryptocurrencies. The currencies are having a hard time breaking the stranglehold of simplicity, efficiency, and convenience offered by other money transfer systems.
Recent reports indicate that the continent has 1.2 billion people and 50% of world mobile money services are in Africa. The technology that powers the money transfer is as powerful as it allows people from even the remotest places to send and receive money from any part of the country through h a simple SMS. This kind of transactions does not need internet connection, just a simple mobile phone.
New Technology Challenge Mobile Money Transfer
Cointext is determined to challenge dominance of mobile money transfer companies. According to Vin Armani, the company has created a secure internet free wallet service that makes it possible for users to receive and send bitcoin cash via SMS.
This is similar to the service offered by mobile money transfer companies; the only difference is that the latter relies on fiat currency while Cointext uses a cryptocurrency. Such a service is believed to be capable of motivating more people to transact in cryptocurrencies.
At the moment, Cointext is only available in South Africa and there is no solid data on the number of people who actually use the service. The CEO, Vin Armani, recently stated that the company is working on a new technology that will enable them reach out to millions of people in Africa who use smartphones and are conversant with cryptocurrencies.
Despite the fact that Africa is lagging behind in terms of cryptocurrency adoption, there is hope at the end of the tunnel. With entry of companies such as Cointext, we will definitely see a significant change in the number of people using cryptocurrencies in the continent. Get more trending cryptocurrency news here.