More and more individuals are becoming aware of the enormous potential that Bitcoin provides, and the cryptocurrency business in Africa has continued to flourish. This increase has been fueled by a number of causes, including inefficient legacy financial institutions and a strong mobile money infrastructure architecture.
However, it has also been made feasible thanks to the efforts of several cryptocurrency businesses that have attempted to push acceptance in Africa via various channels. Luno is one of the leading participants in the cryptocurrency space, offering it simple, quick, and economical to purchase, store, and exchange cryptocurrencies.
In terms of economic growth, Africa is the fastest expanding area in the world, with countries such as Ethiopia, Ghana, Senegal, and Rwanda at the forefront of the push. The financial systems of the area, on the other hand, have been unable to keep up. As a result, many people are turning to cryptocurrencies in order to find a more egalitarian system that is more responsive to their demands.
Luno’s general manager for Africa, Marius Reitz, provided the following explanation
Because the existing financial system does not adequately suit Africans’ needs, they are calling for a new and more equitable financial system. In many nations, conventional methods of trading value are very costly and may be extremely inefficient, making them uneconomical. Consequently, conducting business might become unduly complicated and out of reach for many people.”
“Africans who use conventional currencies are often confronted with high transaction costs, inflation and currency depreciation, excessive interest rates, and a significant degree of fraud,” he concluded. When you add everything together, the present system (despite the fact that many people own a cell phone and conduct other aspects of their life online) is still quite limiting.”
In an interview with CoinGeek.com, Reitz said that the demand for more efficient methods is one of the primary reasons why cryptocurrency adoption has skyrocketed in African countries. The increase in the number of cryptocurrency users, with Luno being one of the beneficiaries of this increase, has served as proof of this increase. In 2019, the firm reached the milestone of 3 million wallets, processing $5 million in transactions each day.
In addition, although it would be assumed that nations with the least developed financial systems would be in the forefront of the movement, Reitz said that the story has been rather different. Countries like as South Africa, which has the most efficient financial system in Africa; Kenya, which is a worldwide symbol of mobile banking; and Nigeria, which has the continent’s biggest economy, have been at the forefront of the crypto revolution. Those living in these nations have taken advantage of the more sophisticated financial infrastructure to get access to cryptocurrencies.
Profits have been important, but they have not been the only consideration for Luno. The firm has made an effort to educate Africans about cryptocurrency, allowing them to break free from the chains of financial marginalization. The company’s mission is to educate as many people as possible about the potential presented by cryptocurrencies. According to Reitz, this is particularly important in Africa since there is a negative public impression of cryptocurrency. As CoinGeek has previously revealed, a large number of cryptocurrency scammers have targeted the continent, taking advantage of the general lack of information about cryptocurrencies.
Reitz made the following observation
For established cryptocurrency traders, purchasers, and potential users, our frequent gatherings serve as a forum for learning about and exchanging opinions about the changing trends in the market. We also organize university visits, with the goal of increasing students’ awareness of cryptocurrencies and helping them to make informed decisions. As early pioneers in this field, we believe it is our responsibility to share our expertise and enthusiasm with the rest of the world to the extent that we are able. It is important to ensure that this occurs across the board for consumers, the media, and other stakeholders.”
Reitz thinks that in order for the cryptocurrency business to develop, crypto firms must collaborate with authorities rather than compete with them. “We think that regulation will offer better clarity, protection, and confidence, which will aid cryptocurrencies in their journey to widespread usage,” he said in his conclusion.
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