Amid growing cryptocurrency markets of Asia, Europe and North America, the African continent is very undeveloped, but even he is quietly and steadily gaining momentum.
According to the trade report African cryptocurrency exchanges Paxful, which specializiruetsya on providing services to those not served by banks, cryptocurrency exchanges turnover is already $ 40 million per month.
However, unlike the Western world where cryptocurrency is primarily regarded as an investment tool, in these low-income regions of the world she plays a completely different role. The instability of the local currency and the absence of adequate banking services are forcing local people to use cryptocurrency to store and transfer their funds.
«To protect your savings from hyperinflation, when the national currency can quickly lose 90% of its value against the U.S. dollar and the Euro, Africans transferred their savings in the cryptocurrency, which over the same period have increased in price by +1000%,» — explains one of the founders Paxfu ray Yussef.
For example, in Zimbabwe, bitcoin in the year 2017 has become so popular that it reached 32 000 dollars, while in most world of cryptocurrency exchanges, its price does not exceed $ 20,000.
Thanks to the services of cryptocurrency exchanges Paxful, which became one of the first to work in this industry, the citizens of African countries were able to invest in online businesses that were previously unavailable to them.
However, this position does not agree with the Nigerian Corporation of insurance of deposits (NDIC), which issued a warning to citizens of the country and encouraged them to refrain from the use of cryptocurrency due to the fact that the Central Bank of Nigeria (CBN) does not consider them legal tender.
According to the statement of the head of the research Department of the NDIC Adik Hoche (Adikwu Igoche), Nigerians must use only those financial institutions that NDIC considers legitimate. The same applies to cryptocurrency. This is why cryptocurrency transactions carried out by Nigerians at your own risk and are not “insured NDIC”.