Is cryptocurrency part of the solutions to Africa’s problems?
Throughout human history, technology has repeatedly disrupted the way things are done. The disruption often happens when new technology does things in a more efficient manner, or in a better way. Africa is a large, but diverse continent. A lot of problems plague that influx Africa, are unique to Africa, as they have been solved in other continents through the use of technology. Cryptocurrencies run on decentralized blockchain technology.
There are 54 countries on the continent, and a lot of these countries use different currencies. Bank transfers between countries is sometimes made difficult because of different currencies. This is not good for international trade within Africa. Cryptocurrency is a very effective solution to this problem. A trader from Nigeria can send Cryptocurrency (Lotucoin) to a trader in Burkina Faso, and the trader in Burkina Faso will get the payment instantly, removing the inefficiency of the traditional banking sector.
Crypto exchanges like Lotucrypto, make payments with cryptocurrencies a pleasant process. A merchant can download the Lotucrypto app, purchase cryptocurrency with his local fiat currency and make payments for goods in another country, using Bitcoin or Lotucoin (the native coin of the Lotucrypto exchange). They can do all of these at ease without leaving their home.
Unemployment is another problem Africa faces. A lot of countries in Africa have shocking unemployment rates. Cryptocurrency is a solution to this in a number of ways. A lot of crypto enthusiasts and software engineers make a living from working with crypto powered applications, new crypto projects and crypto exchanges. Some crypto enthusiasts work on solutions that make cryptocurrency more accepted in Africa, and they earn a decent living from this. Others earn a living from speculating on cryptocurrencies.
A lot of countries in Africa have volatile political atmosphere. This makes the centralization of data resources a risky thing. Decentralization provided by storage of data on the blockchain solves this problem in a unique way. Data resources are owned and shared by the network, therefore, it is difficult to destroy data hosted on a blockchain, since every member of the blockchain network has access to exactly the same data. Adding more members to a blockchain network even makes the blockchain network more secure. This solves the threats posed to data by unstable political systems.
These are just few of the ways in which cryptocurrency currently solves some of Africa’s problems. Cryptocurrency is a relatively young field, and research is still ongoing on it. Hopefully research will unlock more ways in which cryptocurrency can solve the problems of the African continent. The answer to the question in the title of this article is a resounding “Yes”.