South Africa: The Next Frontier for Crypto Exchanges

What could make South Africa become the next fastest-growing crypto market? How the country is emerging as a crypto leader of the continent.
Africa is set to be the next battleground for major crypto asset exchanges, as the conditions on the continent are favorable for virtual currency, and as a leading economy, South Africa could lead the charge in this digital transformation. We will examine how the economic situation and the high inflation in Africa could shape the local crypto markets and why people on the second-most populous continent have been gaining an interest in crypto investments. South Africa in particular seems ready to ride the waves and thrive in the crypto world.Related: Africa Using Blockchain to Drive Change: Nigeria and Kenya, Part OnePromised land?The continent of Africa contains 54 countries. It’s the second-largest and second-most populated continent in the world, just behind Asia in both categories. In the world of traditional investment, Africa may not be a bright spot, but economic growth has become increasingly noticeable. Data from the International Monetary Fund (IMF) shows that Africa’s real GDP is expected to have an annual growth of 3.6% this year — higher than the global growth forecast of 3.3% and just behind Poland’s estimated 3.8%. The IMF also forecasts that by the year 2023, Africa’s economic expansion will accelerate to 4.1%.Inflation at playAfrica’s growth prospects may appear lucrative for some investors, however, its inflation problems could hamper growth. While Africa’s average inflation rate has been relatively contained and much lower than that of other developing economies, if observed over an extended period of time, certain inflation rates across the continent show high instability due to political and economic issues in countries such as Zimbabwe, South Sudan, Sudan, Liberia and Angola. The inflation rate in these countries can be as high as double or even triple digits.When the inflation rate is too fluctuated or surges drastically, businesses are faced with the challenge of appropriately pricing their goods, which significantly reduces consumer buying power. This is where Bitcoin (BTC) and crypto come in. According to the United Nations, the high-inflation landscape plus an improving economic situation have provided an ideal environment to foster crypto markets in Africa. Citing blockchain experts, the UN’s Africa Renewal publication states that many African citizens use Bitcoin as a tool to counter the hyperinflation in their country. The report also says Botswana, Ghana, Kenya, Nigeria, South Africa and Zimbabwe were among the African countries that have the highest Bitcoin penetration rates, while other countries like Uganda were also seen gaining interest in cryptocurrency. Increasing crypto interestWe reviewed how the improved economic conditions and inflation environment encouraged cryptocurrency growth in Africa, and this expansion seems also supported by the African people. A search popularity of the term “Bitcoin” in the Google search engine over the past 12 months surprisingly shows half of the top 10 results as African countries.A weak currency leads to high crypto ownershipThe strength of a country’s currency could add another dimension to the

Post written by our friend Cyrus Ip and Syndicated from Cointelegraph
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