Bitcoin, launched in 2008, is widely known as an online payment system integrated with peer-to-peer functionality and created by an anonymous user called Satoshi Nakamoto. With Bitcoin, users can perform instant transactions directly with one another anywhere in the world, without any third party (such as banks, Western Union, MoneyGram, PayPal) involved.
The use of the bitcoin currency in a continent like Africa for remission and transactions is increasing every day as well as bitcoin purchases and has really made government authorities, lawful specialists and web based marketers to demand the regulation of the bitcoins. While a number of African countries have chosen to hold up and observe how the situation will result to sooner rather than later, we can find countries like Kenya and Uganda making proactive steps and considering the official regulations and policies.
In Nigeria, retail stores such as a leather merchandise website called Minku have chosen bitcoin currency as one of their payment modes. BitX, a bitcoin exchange from South Africa which is also acceptable in Nigeria, as of late joined forces with a mobile payment firm called Zazoo in order to enhance the use of digital currencies through a MasterCard service provider called VCpay. CEX.IO and some other cryptocurrency companies have likewise been offering various bitcoin-related services to African countries for some time now. Being an international cryptocurrency exchange, CEX.IO serves 99% of countries around the world and allows for buying Bitcoin with any currency using VISA/MasterCard. Africa is no exception! In spite of the fact that Bitcoin trading on CEX.IO is done mostly in USD, EUR, GBP and RUB, the users are welcome to make deposits in their national currency, which is then automatically converted. In addition, CEX.IO provides an option of withdrawing money directly to the credit card in short order.
Nowadays, the bitcoin currency is getting well known in Nigeria. This is due to many Nigerians choosing the currency for their respective day-to-day exchanges. Privately owned businesses now offering the bitcoin currency to anybody that shows interest. Web Based Marketers are starting to acknowledge the bitcoin as their preferred payment mode.
Regulating these virtual currencies will ensure secure transactions and may gradually help to stabilize the economy of the country. More so, the anonymity functionality that the bitcoin possess has made it possible for black marketers to carry out illicit businesses. Bringing up the appropriate regulatory board won’t only control but will also offer authenticity to bitcoin exchanges.
In spite of the fact that a large populace of the Nigerian citizens does use bitcoin currency to make their respective online purchase, many of them are still very afraid to transact using bitcoin due to its instability. The issue of volatility does not motivate many of them to exchange their local currencies for the bitcoin currency. Even, those who possess the courage and boldness only perform a quick transaction just to limit the risk that may arise as a result of any rapid fluctuation.
This current situation is not particular to Nigeria alone. Despite the fact that South Africa did have a remarkable bitcoins usage due to a lot of bitcoin trades being performed every day, her monetary authority is hesitant to acknowledge the usage of bitcoin. This situation may be averted later on in the nearest future if only bitcoin usage becomes increased and popular.
Following the roundtable conference meeting that was held in Uganda which concentrated on various digital currencies, Uganda may turn around and emerge as the first and foremost African country to successfully implement bitcoin regulation. If at all there arise a successful implementation of the regulation in Uganda, this will set a point of reference for other African countries to make a similar law.
In march, another Conference meeting was also held in South Africa for Bitcoin. This same country now has a committed foundation named the Bitcoin Academy which provides various courses about bitcoin fundamentals and also blockchain-based apps developments.
Implementing this bitcoin regulation in Africa will secure users transaction and give organizations a significantly greater lucidity and some level of trust in whatsoever is going on in the cyberspace, thereby causing an advancement to the financial sector. In the meantime, some interested bitcoin organizations who desire to remain in existence for the next couples of years, independently do the regulations by integrating what is known as KYC (know your customer) procedure and also, the AML (hostile to illegal tax avoidance) procedure which is usually set up for most financial establishments.
More so, BitX has as of now constructed a compliance system, functioning intimately with many financial establishments, designated regulatory bodies and even governments, concentrating on the best practices by financial institutions. With this development, the potential of the movement will be balanced while lessening the key dangers and giving many organizations and business startups more chance to learn and develop new territory without any excessively burdened regulations.
With Unicef donating using digital currencies and also Barclays emerging as the foremost United Kingdom financial institution to help foundations acknowledge and receive bitcoin, there may be an expanding demand to implement the regulation in some parts of Africa where organizations like Unicef and Barclays have very solid networks
Banks all over the continents have been making exploits into bitcoin, attempting to decide the benefits of the bitcoin and its distinct blockchain innovation. According to the bank, this move taken by Barclays could pop out bitcoin into the limelight and can possibly turn around the services provided by financial establishments.
Also, a working community powered by the Commonwealth of Nations concurred together after a meeting with the World Bank authorities in London that digital currencies which include bitcoins could profit members and enhance improvement. While these digital currencies are being observed to pose few risks, the community encouraged all Commonwealth members to deliberate on the pertinence of the respective legal tender available in their country to digital currencies and consider regulating them. With more than 15 African members in the community, they can be able to implement a computerized repository of regulations and best practices as a major aspect of a strong effort made to help members in creating policies.
Any regulation presented in this part of the world regarding cryptocurrency must be done only after a careful thought. The number of organizations and individuals using bitcoins is progressively growing due to more Bitcoin-based services being created. Anything that alters such growth may not just loot the countries involved, but also make it hard for organizations and startups to work.
Lately, Bitpesa which is one of the noticeable bitcoin players who declared B2B services that permits entrepreneurs in Nigeria and couple of different countries to make payment directly into bank accounts of Chinese partners with whom they work together. The new service is required to lessen the exchange costs for these businesses by a minimum 60 percent while cutting short the time taken for the exchange. This is also required to reinforce exchange amongst China and African countries.[gtranslate]