Emerging Blockchain Market In Africa: Sign Of Great Things To Come
The emerging Blockchain market in Africa is proof that the continent realises the positive impact of Blockchain technology, and are keen to adopt it. You can agree with me that using technology, Africa can turn its infrastructural decay into an asset.
Blockchain technology represents an excellent opportunity for Africa, especially its combination with the Internet of Things (IoT) and Artificial Intelligence (AI). The disruptive technology is made up of a decentralized and immutable ledger that permits transactions to be validated almost instantaneous without a central control unit.
As trust technology, Blockchain technology will significantly contribute to the development of the continent because of its enormous potential. There are many Potentials in Blockchain, and it has led to the rise of the blockchain market in Africa.
Although the long-term effect of Blockchain is difficult to assess, the positive impacts and prospects are transcendent. African countries constitute an opportunity for the exploration of Blockchain technology.
Also read: The use cases of Blockchain in Africa
Rising Blockchain Market
The Tunisian Central Bank has been looking for means to bring innovative solutions in the banking sector. Cash transaction culture in the country has been hindering banking development, while additionally promoting illegal trade.
Some of the Tunisian institutions like the National Post Office entered into a partnership with DigitUS and Monetas. DigitUS is a Tunisian startup that is specialized in Crypto-finance while Monetas is a Switzerland based software company.
The partnership strived to provide the Tunisian population with a DigiCash, which is a virtual portfolio. This virtual portfolio allows the user to send and receive money, pay bills, and so on.
It has propelled Tunisia to become the first country to issue its national currency through an application based on Blockchain technology.
BitHub Africa is a Blockchain accelerator company headquartered in Nairobi. This startup has a vision of boosting blockchain solutions in Africa.
BitHub provides consulting services to different organizations interested in deploying Blockchain solutions in Africa. They also organize training and workshops for developers.
You can see the gradual build-up of the Blockchain market in Africa.
The company hopes to become a world leader in adopting Blockchain technology by the year 2030.
They are also working with local regulators in Kenya to promote Blockchain-related policies conducive for ICO and cryptos in general.
South Africa is the biggest market for Distributed Ledger Technology on the so-called dark continent. The Blockchain Academy in Cape Town provides training in Cryptocurrency and Blockchain technology to entrepreneurs.
Their primary focus is on capacity building in Cryptocurrency and Blockchain technology. They hope to achieve this goal by providing specialized training and consulting services in Africa.
In the same vein, the South African Reserve Bank has chosen to experiment with an accounting system based on the Ethereum Blockchain.
In fact, the Southern African country has many Blockchain startups. It has more Bitcoin ATMs on the continent and pioneered merchant acceptance of Cryptocurrency as a form of payment for goods and services.
Challenges Facing Blockchain Market
Although the future of Blockchain technology in Africa is bright, specific problems may hinder this development.
Africa’s Energy Capacity
Arguably the most critical challenge, especially because Africa is behind in terms of energy generation. Some Mining activity that validates transactions and registers them on the Blockchain network is energy-intensive.
It means that the Blockchain industry players in Africa need to come up with a solution to tackle this energy consumption problem. If this it is not adequately handled, then the Blockchain market in Africa will not get to that height that we are anticipating.
African governments must be willing to commit themselves to define a legal and regulatory framework concerning Blockchain technology. In most African countries, there is no statutory framework, and it is a major setback.
African countries should take a clue from the states of Estonia and Malta on the issue of regulation. However, the Mauritius Blockchain Regulatory Sandbox is a better example for African governments.
It seems countries like Nigeria, Kenya and South Africa, are also determined to come out with a regulatory framework for the sector. Sierra Leone is another country we should watch out for when it comes to Blockchain regulation formulation.
In a nutshell, there is no ambiguity that the Blockchain market in Africa is on the rise. Notwithstanding, we must create the enabling environment for the technology to thrive.
Blockchain technology has the potential to revitalize the African economy, so all hands must be on deck to make that happen.
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