Bitcoin is set to disrupt Africa’s $85 billion financial system – here’s what you need to know
Bitcoin (BTC) is on track to become the currency of choice for moving money between African countries, a new CNBC report has revealed.
The comprehensive report, authored by CNBC crypto reporter MacKenzie Sigalos, came three months after the conclusion of the first Africa Bitcoin Conference in Accra, Ghana, and detailed how Bitcoin is disrupting Africa’s financial system.
A major player in the African Bitcoin story right now is Twitter founder Jack Dorsey and his Bitcoin-focused payments company Block, Inc. Notably, Dorsey was among the presenters at the Africa Bitcoin Conference, and he seemed to have a big impact, according to the report.
The report pointed to a quote by Dorsey at the conference where he talked about how Bitcoin had made up for money lost during a recent street protest in Nigeria.
“The Nigerian government went to various banking corporations to stop protesters from receiving money – something Bitcoin made up for. So our whole reason for being a company is to solve the same problem that Bitcoin will eventually solve for everyone in the world,” said the Twitter founder.
According to CNBC, Dorsey’s push into Africa offers an alternative to the prevailing negative narrative surrounding Bitcoin. Rather than being something regulators are eager to crack down on, Bitcoin in Africa is bringing financial power to people who would otherwise have none, the report said.
It also pointed out how Africa is particularly well-suited for a decentralized currency like Bitcoin, given the many problems countries on the continent are facing.
“In countries where the vast majority of the population is unbanked, national currencies are no longer a safe store of value, remittances make up a large part of GDP, and international sanctions complicate connections to the global economy, a virtual currency that does not require an intermediary to approving transactions can be an important lifeline for survival, the report says.
“A market for bitcoin in every corner of the world”
Commenting on the use of Bitcoin for cross-border payments, Mike Brock, CEO of TBD, a business unit of Block, said that the cryptocurrency can now be used almost anywhere in the world.
“I can exchange dollars for bitcoin and then bitcoin for Brazilian rials. There is a market for bitcoin in every corner of the world today,” said Brock, while pointing out that when bitcoin is used for payments, the price of the coin becomes irrelevant.
“It doesn’t matter to me if the price goes down or up, because I can still use bitcoin as a vehicle to move money around the world instantly,” he said.
Brock added that Bitcoin is far superior to traditional mobile money systems, given that there are no interoperability or regulatory challenges when sending money across borders.
“If you can access the internet, you can settle bitcoin payments. And the government can’t do anything about it,” Brock concluded.
See CNBC’s report from the Africa Bitcoin Conference in December:
