Cryptocurrencies never ceased to be part of the trending topics in the African continents, and their vast possibilities have been causing all sorts of impacts on the nations inside the territory. From those that are constantly opening more opportunities for crypto, such as South Africa, which recently made the famous Shiba Inu official, to Sudan that still goes against crypto adoption, every week, a lot happens and changes in different African nations that are paving their way towards crypto adoption. These are the key news pieces we found this past week to share with our community.
Quartz Africa reported that, despite the continuous growing curve, cryptocurrencies have been facing issues with legitimacy in the African continent. Stronger economies such as Mauritius and South Africa have been on the frontline of crypto regulatory movements and are already benefiting from a more structured approach to this market. The regulations in these territories might open a door for more private investors to join the market with their assets.
The situation in early crypto adopters differs, and many regulations in other African nations are still shaky. The United States is still taken as a primary example of what to do and not to do, and countries on the journey of fully embracing crypto to their realities and economies are paying close attention to their surroundings. Currently, even in countries where one out of three citizens use crypto, such as Nigeria, the lack of regulations focused on common issues hampering effective trading slows down the widespread implementation of crypto reality.
Coindesk discussed the power of Web3 this week, a topic that we have been particularly paying attention to. Africa is the second-largest bitcoin market globally and registered a growth that surpassed $100 billion last year, despite the pandemic. Furthermore, it has been reported that more than 60% of global mobile money exchanges pass through Africa, which sheds light on the continent’s readiness to keep embracing new technologies and adopting resources that can transform for good Africa’s financial market.
Crypto adoption and popularization in Africa have accumulated potential, and the scenario is developing toward making Africa a powerhouse of Web3. However, since many rooted issues with decades of instability and old-fashioned mindsets and business are still part of the context, Africa has been slowly but surely widening the beneficial possibilities that crypto brings to the continent. Africa may need crypto to strengthen its capacity and make full use of novelties and technologies, but it is impossible to ignore the role the continent already plays in a non-stop journey towards innovation.
On Wednesday, April 13th, Shiba Inu (SHIB) was officially listed in the South African crypto exchange VALR as a ZAR trading pair. This was groundbreaking news for VALR users, that now have an easier way to buy and sell Shiba Inu using South African currency. The market is looking increasingly promising for SHIB as its popularity recently increased by 43%. SHIB’s progress in the last year is eye-catching, and it has been officially listed in more than 100 crypto exchanges, including some popular ones such as Binance, Coinbase, and Kraken. South Africans can now surf this wave and might benefit from this decision.
In South Africa, the potential of NFTs has been positively impacting a variety of industries, and this week it landed in the art field. Africa News reported that South African artists are now betting on this technology to sell their works in the format of non-fungible tokens.
The base technology of NFTs is the same as the crypto-currencies that are already quite popular in the South African market. However, this time, artists are embracing the opportunity to upgrade their workflow and popularity by keeping themselves aligned with what has been happening in this heated market.
Fhatuwani Mukheli is a professional painting artist that sees NFT as an opportunity for growth and evolution. Just like him, artists who can adapt to the constant changes of the digital environment might be able to close better businesses and produce better than those who go outdated. Digital technologies such as NFTs have made trending techniques, audiences, and preferences more evident and the rhythm of interpersonal and business exchanges is getting faster. This new dynamic can benefit artists and art aficionados, opening a new path for both to experience art not only in the physical world but also in online settings.
Every art sold via NFTs grants the buyer a verified digital token proving the pieces’ authenticity. This new buy-and-sell scheme also benefits the creators, that get a chunk of every future sale every time they sell a creation.
In Sudan, the surging demand for cryptocurrencies has been alarming for Sudanese financial regulators. Recently, the CBOS (Central Bank of Sudan) issued a warning to bring awareness to the risk posed by different types of crypto. Since 2021, Sudan has been suffering to handle the harrowing consequences of the military takeover, and the negative impacts on the country’s financial scenario were severe. Last year, Sudan’s inflation rates reached three digits - almost 360%, according to the National Bureau of Statistics - which collaborated to an increased interest in digital assets. The Sudanese population is in need of a reliable solution to the ongoing financial crisis, but public bodies are still worried about the transition toward these new technologies. SUNA (Sudan News Agency) reported that issues with lost values, economic crimes, and privacy are higher for those handling crypto transactions, which may hamper the advancements of crypto adoption in the country.
Under Sudanese law, cryptocurrencies are still not officially seen as a type of property and not even as money. Furthermore, Sudan’s electronic payment regulations do not apply to crypto transactions, leaving a gap in the legitimacy and security of these exchanges. As a result, Sudanese authorities seem to be making it difficult for cryptocurrencies to become a reality, despite the huge financial setbacks currently faced by the Sudanese economy.
These are the trending crypto-related news we gathered straight out of the African continent. We are committed to following up with what is going on in our primary market to understand where it is heading. So keep an eye out for the latest news and announcements we share on our social media platforms and follow us for weekly updates.
