How Cryptocurrency is causing a financial revolution in Kenya?

In Summary

• Africa already has a huge population of investors who have made millions of dollars from investing in cryptocurrency.

• Kenya has the most rising enthusiasts of crypto and has proved to have the largest continuous crypto activity going in the state. 

Virtual currencies such as Bitcoins are not legal tender in Kenya
Virtual currencies such as Bitcoins are not legal tender in Kenya
Image: COURTESY

According to a recent study by the World Bank in 2017, Africa along with Egypt, Ghana, and Malawi has broken the record of the double-inflation rate because of the high use of bitcoin there. 

Another study by British Bitcoin Profit says that the monthly transfer of cryptocurrencies especially Bitcoin to and from Africa was about $10,000 that gained a rapid increase of 55% as compared to last year.

These statements are clearly direct to the increasing interest and use of cryptocurrency among today's tech-savvy and risk-taking generation of Africa. 

From the introduction of the first and largest cryptocurrency bitcoin to the presence of more than 2,000 cryptocurrencies today, it wouldn’t be wrong to say that cryptocurrency has driven numerous countries by its loud and forceful money revolution. 

As mentioned, Africa already has a huge population of investors who have made millions of dollars from investing in cryptocurrency. However, Kenya has the most rising enthusiasts of crypto and has proved to have the largest continuous crypto activity going in the state. 

The skyrocketing price of the cryptocurrency in 2015 brought a massive money revolution in Kenya to deal with the hyperinflation that was going on in the country.

This made the African government pay attention to the spurring growth of the economic events going on in Africa.

However, with agreeing to the fact that Nigeria, Zimbabwe, Botswana, and many other countries have already been a part of this revolution in the past, the cryptocurrency revolution in Kenya was certainly a matter of concern. 

Introduction of Cryptocurrency in Kenya

Kenya is the heart of Africa, having a critical financial background with a strict government. However, the introduction cryptocurrency in Kenya was not relatively surprising as the country benefited from it to reduce the cost of international funds transfer and remittance fees that other transfer providers impose. 

After a few times, the Kenyans observed a sudden spike in the growth of their economy by extensively profiting from high-value cryptocurrencies. But, the price volatility of cryptocurrency became the reason for Kenyans to comprehend the working of cryptocurrency there. 

According to them, finding the right deals and investing in them is comparatively easier and more interesting than all the jobs they have done before. Neither it requires lending money nor having so-called side hassles but can easily get huge profits. 

Remittance Services in Kenya

The cost of remittance services in Kenya is comparatively higher than any other country which is also a reason for increased crypto use there. In this regard, cryptocurrency became the problem solver for them and offered a cheaper solution to them for receiving and transferring the funds locally or across the borders. 

Before the arrival of cryptocurrency, Kenya used traditional remittance services like Western Union but they had comparatively high fees that became troublesome for those who are on daily wages and have to transfer funds daily. In this regard, cryptocurrency offers zero fees for transactions as it is free from any third party. 

Savior in Times of Financial Crises 

Kenya is also popular for its efficient banking system and its support to the local people. But, they also didn't help when the Kenyan government imposed control on the US dollar at times of severe financial crises in Kenya. 

This disturbed many local businessmen and people to instantly transfer their funds online which they substituted with bitcoin that provided a safe and efficient way to trade (buy and sell) goods and services from anywhere in the world with no remittance service charges. 

Conclusion:

As everything starts small, Kenya also took the primary step towards cryptocurrency by understanding it from the scratch. That is why the country today tops the list in crypto revolutionized countries beating high economic countries. They also obtained huge profits by selling their digital currency to other high-value foreign currency exchanges.