Uganda is no stranger to crypto currencies; numerous young people have attempted to learn how to trade, and some have gone on to purchase and invest in various coins. The remainder of Africa, including Uganda, has quickly caught up to the Crypto currency frenzy. The best thing about Crypto currencies is that one only needs a smartphone and online connectivity to become part of the blockchain network.
In Africa, Bitcoin is the most popular and widely utilized cryptocurrency. Because most countries and governments around the world do not support cryptocurrencies, their use in Africa is still expanding. Despite the fact that some governments, such as Kenya, declared in 2015 that they do not engage in crypto trading, the Ripple coin and the most widely used Bitcoin are increasing in value while the Kenyan Shilling is losing value.
Nigeria, with a population of over 200 million people, is the most populous country in Africa. The country was impacted heavily by the Covid-pandemic, as were many other countries. This resulted in a 20 percent increase in food prices while inflation decreased. Kenya, with a population of approximately 53 million people, has a similar inflation rate, though slightly lower than in 2019. These events will spur the growth of online commerce, which will be aided in part by crypto, such as the Atom cosmic currency.
Crypto’s minimal drawbacks when it comes to cross-border transfers make it an ideal alternative for investors who need to send money quickly from one side of the globe to the other. Crypto will become more popular in the future as a result of its ease of use and access, which only requires a mobile phone, app, and network connection. Because of innovations like M-Pesa in Kenya, Wave, and Mobile Money, Africans are already accustomed to making online payments.
Analysts predict that due to the ease of use and cost-effectiveness of cryptocurrencies when sending and receiving money, the digital currency will continue to rise unabated across Africa. Stablecoins are a type of cryptocurrency whose value is tied to a certain asset class. For example, a fiat currency such as the US dollar or gold. These stablecoins provide Africans with a new way to save money while dealing with their own country’s unpredictable currencies without having to worry about their investment depreciating. The currently modest cryptocurrency sector in Africa will grow in popularity in the future due to its several advantages over traditional banking systems.