Ecobank Discovers High Prevalence Of Cryptocurrencies In Africa

According to a report published by Ecobank Transnational, only two of the 36 African countries in which it operates have declared a friendly stance towards cryptocurrencies and blockchain technology. The revelation is particularly surprising, given that the use of digital countries is prevalent in most of these nations. The report goes on to state that most African countries are favoring a patient approach on the regulation of these digital assets.

Additionally, the report states that many countries understand both the positive and negative impacts of cryptocurrencies, as well as their risks. Also, a substantial number of governments can discern the difference between digital currencies and their underlying blockchain technology.

However, most of the countries are still reserved on legalizing the use of cryptocurrencies, mainly because of its potential risks. Rather, the governments are playing a waiting game, refraining until their contemporaries initiate the first move. Based on the performance of their neighbors, the countries decide on whether or not to implement the laws.

Furthermore, the report established that their no distinctive regulatory trend, whether friendly or unfriendly. As of now, only South Africa and Swaziland have explicitly declared a positive stance on cryptocurrencies, while Namibia is the sole country that has outrightly banned virtual coins.

Concerning French-speaking countries, only Rwanda, Cameroon and Senegal have drafted a policy statement on digital currencies. Those governments have indicated that cryptocurrencies are neither legal nor illegal. Therefore, blockchain projects can run without harassment from the authorities. Essentially, these governments are telling their citizens to deal in such assets at their own risk.

Ecobank stressed that many African states are wary of the systemic disruption that would arise as a result of the mass adoption of cryptocurrencies. As per the report, leading digital assets gained popularity throughout last year as well as in the early stages of this year. Nevertheless, the volatility of the market has made many to overlook the potential benefits of virtual currencies and blockchain technology.