Africa has been one of the continents that have seen the adoption levels of cryptocurrency and blockchain technology to have increased over the last few years, with Malawi being one of the countries that are thought to be one nation that could benefit greatly in the future.
Indeed, the global pandemic had a devastating impact on the country’s economy and whilst there have been some signs of slow recovery amid increasing vaccination numbers, there are many who are suggesting that the rate of recovery can be quickened if a faster level of adoption of blockchain and crypto was to be experienced.
Evidence suggests crypto is booming in Africa
There has already been evidence to suggest that digital currency is booming within the region, with a range of reasons to have helped to support why there has been a huge amount of growth.
One reason is due to the amount of interest that has been experienced in crypto gambling throughout the continent. Many Africans are continuing to look for the best platforms in which they are able to choose from crypto slots because they are able to enjoy benefits that simply can not be experienced when using fiat currency. Factors include anonymity, as well as stability, whilst the rate of adoption is reportedly the highest around the world. It is claimed that between July 2020 and July 2021, African countries had received close to $105.6 billion worth of crypto, which represented a growth of 1,200% in value.
However, perhaps the biggest influence in regard to the growing interest in crypto across the entire continent is due to the high inflation rates that African countries are notoriously known for. National currencies have become far from stable, with many of them having experienced a number of price crashes in recent years.
The crashes in value have made things difficult for locals to be able to afford a range of different things, as well as being able to save, which is why so many have decided to invest in cryptocurrency in the hope of increasing their wealth.
Action could be taken
With this in mind, it would seem that the Reserve Bank of Malawi could take action, including potentially making a digital currency available as a form of legal tender in the future. Thabo Chakaka Nyirenda, former Ethics and Compliance Manager of the bank, stated that the country would find itself in a serious dilemma, although Malawi could look to write up a plan about future crypto regulations.
As previously highlighted, many believe that the cryptocurrency market and the blockchain industry is one of the easiest ways out of the current situation for the country, especially as there are no restrictions in place on locals buying and trading digital assets, as well as the growing interest in virtual currency throughout the country’s population.
Many have lost confidence in the national currency due to the high levels of inflation that continue to be experienced on a rather regular basis, whilst it has actually become incredibly easy to start trading crypto, as well. All those who wish to trade digital assets will simply need to open a live account with an available exchange.
In Malawi, many traders are currently using bitcoin robot trading, thus offering them the opportunity to get on with their own lives whilst also seeing their money work for them.
Indeed, this could also help to improve the economy at a quicker rate. As mentioned, Malawi’s economy was devastated by the global pandemic and whilst it has started to recover, it is still going at a rather slow pace and a rate which perhaps needs to be quickened.
Many have highlighted that cryptocurrency and blockchain technology is the way forward, with the latter of the two providing Malawians with the opportunity to experience faster transactions that are of a higher efficiency level. Indeed, many different industries are currently using blockchain technology around the world, so there is no reason that the African country could benefit from doing so, either.
Additionally, the level of cryptocurrency adoption being experienced around the world also can help the economy grow quicker, as well.Follow and Subscribe Nyasa TV :