What will Define the Future of Bitcoin?
- Bitcoin has a great future in Africa per Jack Dorsey, CEO of Twitter & Square
- Bitcoin is already popular in Africa but why?
Jack Dorsey, Twitter and Square CEO who sees Bitcoin becoming the Internet currency now says Africa is which will define the future for the world’s leading cryptocurrency.
In a tweet on Nov. 27th, about his plans to live on the continent for most of the next year Dorsey said,
Sad to be leaving the continent…for now. Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020. Grateful I was able to experience a small part. 🌍 pic.twitter.com/9VqgbhCXWd
— jack 🌍🌏🌎 (@jack) November 27, 2019
Dorsey has been spending his time in Nigeria and Ghana this month where he attended a Bitcoin meetup as well. He is well known for his Bitcoin support and has a division “Square Crypto” working specifically on Bitcoin.
Recently, Square's mobile payment service Cash app recorded double the increase in Bitcoin buyers, for the first time in Q3.
Dorsey has also publicly endorsed Lightning Network, a second layer payment solution on top of Bitcoin network that allows for instant and cheap BTC transactions.
Bitcoin already popular in Africa But why?
Dorsey’s comment came amidst the growing popularity of Bitcoin in Africa. In the past 12 months, the google searches for Bitcoin has been dominated by Africa, with Nigeria and South Africa in the lead.
The biggest opportunity for Bitcoin here is the estimated 80% unbanked. The limited access to banks makes for a viable alternative for the vast rural population of the countries in Africa.
The double-digit inflation rates in Nigeria, Zambia, Zimbabwe, Ghana, Malawi, and Mozambique also present a strong case for the deflationary crypto-asset Bitcoin.
Additionally, South African rand, the fiat currency for the country is also among the most volatile of the major currencies. The fact that South Africa also has a growing remittance market and is yet to enact strict crypto laws, except for AML/KYC compliance and tax regulations, bitcoin is gaining interest here.
The likes of the UN are also pointing out how Africa could very well be “the next frontier for cryptocurrency.” However, there is a knowledge gap that needs to be bridged.
The Blockchain Association of Kenya has shared previously that there is a desire among consumers to use cryptocurrency but the country lacks the knowledge and this gap, Bethwel Opil, spokesperson at Kaspersky Africa said is “getting in the way of taking the plunge.”
If the educational and interest in Bitcoin continues to grow, we might get to see Dorsey’s projection of Bitcoin having a great future in Africa come true sooner than later.