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January 21, 2019

Africa cautiously warming up to use of cryptocurrency - report

Virtual currencies such as Bitcoins are not legal tender in Kenya. /COURTESY
Virtual currencies such as Bitcoins are not legal tender in Kenya. /COURTESY

South Africa is the sole country in Africa that has warmed up to the use of digital payment platform, cryptocurrency, according to the World Payments Report 2018 released yesterday.

Ghana and Kenya are in the consultation phase, a trend that was also noted in Asian nations Singapore and the Philippines. Nigeria is still regarded hostile to the digital payment platform.

“The central bank of Nigeria has also imposed a complete ban on Bitcoin and the likes,while Brazil also has banned cryptos,” says the report.

The report notes that United Kingdom, France, and Germany do not have any concrete regulations currently about uptake of cryptocurrencies, but are warming up.

It also notes India was initially friendly towards cryptos,but changed its stance in early 2018 by restricting their use.

The report explores how the banks are looking at new value-added services, including corporate treasurers, with the adoption of a new payments ecosystem.

It also analyses emerging technologies such as blockchain and real-time payments that can help banks become anchors of this new payments ecosystem.

While developing markets are driving growth in global payments, the e-wallet market also presents marketshare opportunity for big tech firms to thrive through offering unique value propositions to customers.


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