Many people would not expect Africa to be a good destination for finance. However, the continent has proven over and over again that it is well accommodating to the industry. One of the newest additions is the cryptocurrency market with several countries like South Africa, Ghana, and Nigeria.

South Africa is one of the leading countries of Africa in terms of finance. The fact that their growth with financial industries cannot be ignored. Their financial watchdog FSCA has been one of the top players worldwide. The FX and CFD trading in the country is looking up as well thanks to the volatility of the local currency. Many new traders are signing up every day, further gaining momentum for the country.

One of the best features of South Africa is the brokers they feature. If you check this FSCA regulated South African Forex brokers list here you’ll quickly see that the number is quite large for a relatively small country. What’s even better is the fact that such growth in the financial industry brings nothing but an easier access range for cryptocurrencies.

The boom with Africa started when the African governments stopped imposing very strict regulations for cryptocurrencies. Finally, they were able to see the usability of cryptos compared to their local fiat currencies. Although many of them tried to stay away from it as far as possible it is no doubt that cryptos were able to help even larger countries with inflation.

One of the primary examples of this is Venezuela where inflation has been rampant for the whole year. People were having trouble buying even the smallest necessities like toilet paper. Fortunately for them, a cryptocurrency market soon opened up within the country. Pretty much half of the commerce there is now done in Dash Coins. The crypto was able to help transactions from abroad to remain anonymous and stay far away from inflation.

The same thing could happen in Africa as many states are pondering over switching to the USD as their main currency.

The security of the African banking system is still a topic to be discussed. As a matter of fact, the banks are not very reliable. The economic procedures within some of the countries sometimes appropriates the local currency to a point where it becomes too costly to even manufacture it. When the banking system is so unpredictable, the population of the African states leans more towards cryptocurrency as a safe backup plan in case the banks fail.

It is no secret that even the most sophisticated banking systems have some arbitrary rules that inhibit their productivity. For example, there are numerous bottlenecks concerning the transaction services these banks offer, they’re way too slow and insecure. Now imagine how much more chaos, the African banking system is connected to. The fact is that cryptos offer a relief from all of the procedures that come before during and after a transaction. Furthermore, corruption that has plagued the African continent for decades will be mostly eliminated as there will be no intermediary bank needed for peer to peer transactions.

If there will be no complete switch to existing currencies the government can just opt for its very own virtual currency. Many countries have been doing it for the past few months, for example, Tunisia with its eDinar. Therefore, introducing a personal virtual currency is a good option for African governments.

The post Why Cryptocurrencies are the next big thing in Africa appeared first on CaptainAltcoin.

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