• Despite threats and warnings from Kenya's central bank about the volatility of crypto-currencies, some industries in Nairobi are now endorsing Bitcoin payments.
• The entire number of Bitcoin transactions in Kenya are calculated to be worth over $1.5m with respect to the Blockchain Association of Kenya.
The interest in virtual currencies is surging all around the African continent, particularly in Kenya, Africa's Silicon Valley.
Despite threats and warnings from Kenya's central bank about the volatility of crypto-currencies, some industries in Nairobi are now endorsing Bitcoin payments.
The entire number of Bitcoin transactions in Kenya are calculated to be worth over $1.5m with respect to the Blockchain Association of Kenya.
However, how did Bitcoin grow this much in Kenya despite warnings and threats? You must be wondering this.
Let’s inform you how and why!
Crypto-currencies are digital money that can be utilized to pay for stuff in the real world, such as a hotel room, food, voyage, or even a house. Digital tokens are carried in online wallets that are available in Play stores and App stores, so these tokens can be sent anonymously through the digital online wallets between users.
Cryptocurrencies function on a technology called blockchain - a ledger of blocks of data, such as trades or agreements that are catalogued across a web of computers. The data is catalogued chronologically and is formulated to be decentralized and tamper-proof.
While this provides protection and security, it also implies there is no supervision from any central authority such as a bank or a government of the state. The very first blockchain-supported currency formulated was Bitcoin, and it proceeds to be the most widely used globally.
At present, the cryptocurrencies Bitcoin, Dash, and Lisk are employed in Botswana, Ghana, Kenya, Nigeria, South Africa, and Zimbabwe which is a great thing that people of these states have pursued.
Blockchain is also being executed by start-ups and tech empires alike in Kenya to assist unravel problems, such as IBM's program to help small enterprises to ascertain their creditworthiness for loans. So, doing all this, Bitcoin has thrived and is thriving more in Kenya as well as other states of Africa.
With the help of these online wallets and other ways, people have started to earn money from the cryptocurrency that has given another spurt to the rise of Bitcoin in Kenya. The trading platform like Yuan Pay App given to Bitcoin by people has gained a lot of prestige in Africa.
Bitcoin is digital and decentralized. With Bitcoin people get the freedom to trade without negotiators which translates to considerable control of funds and lower expenses. It's quicker, inexpensive, safer, and steadfast. Cash is regulated by banks while in bitcoin people are their own regulators or owners.
Benefits of Bitcoin
Other than this, there are many other benefits of Bitcoin and cryptocurrency that supported this surge. We are enlisting them next:
- Offers user autonomy
- Allows peer-to-peer focus
- Elimination of bank fees
- Low transaction fees for International payments
- Mobile payments
- High accessibility
- Greater Liquidity Relative to Other Cryptocurrencies
- Increasingly Wide Acceptance as a Payment Method
All these benefits of Bitcoin have really impressed the people of Kenya. Therefore, Bitcoin is reaching the mountains in this state. People there like the amenity of using Bitcoin to pay for purchases.
Bottom Line
Nevertheless, if you peek at the total amount of people in Kenya utilizing virtual currencies today, it is still fairly little - only about 40,000 people have ever brought about a transaction using Bitcoin.
The reason for this lower number of users is that Kenya's central bank has prohibited banks from exchanging in virtual currencies.
However, the Blockchain Association of Kenya (BAK) argues with this way of reasoning, and it is actively labouring to teach the country the advantages of using cryptocurrencies such as Bitcoin and blockchain.
The non-profit body explains that employing virtual currencies can largely curtail the cost of transactions, and enable the population without bank accounts to promptly make and collect payments. With these efforts, we are sure that Kenyans will grow further with Bitcoin and take advantage of it.