No doubt, Cryptocurrency growth in Africa is becoming rapid in financial sector. Back in the previous decade, most people depended on the traditional banking systems which have been good but not efficient enough with many gaps in financial inclusion, but the emergence of cryptocurrencies like Bitcoins, Etherum, Lite, and others have helped in improving financial transaction. The issues of the inefficient legacy financial system have been the fuel for creating the adoption of cryptocurrencies by crypto companies in Africa. Luno is one of the frontier crypto company that makes buying, selling and storing of cryptocurrency more reliable and sufficient.
African countries’ financial systems have not been efficient enough to boost the fast-growing economy of the continent, and this has led many people to turn to cryptocurrencies which gives a more equitable system that provides easy transaction and low transaction fees.
Marius Reitz, the general manager for Africa at Luno, explained:
“Africans are demanding a better and fairer financial system because the current system does not serve them to well. In many countries, traditional ways of exchanging value are very expensive and can be highly inefficient. As a result, doing business can be unnecessarily difficult and out of reach for many.”
”Africans using traditional currencies are often faced with high transaction costs, inflation and currency devaluation, exorbitant interest rates and high levels of fraud. Coupled with all this, accessing the existing system (although many have a mobile phone and conduct other elements of their lives online) is still incredibly restrictive.”
In an interview with CoinGeek (one of the trusted sources for bitcoin news and blockchain information), Reitz pointed to the need for more efficient systems as the key reason crypto use has shot increased in Africa. This spike has been evident by the rise in the number of crypto users, with Luno being one of the beneficiaries of this rise. The company surpassed 3 million wallets in 2019, processing $5 million per day in trades.
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And while it’s the countries with the least advanced financial system that would be expected to be leading the charge, the narrative has been a little different, Reitz told Coin Geek. Countries like South Africa, which has Africa’s most efficient financial system; Kenya, a global icon of mobile banking; and Nigeria, Africa’s largest economy, have led the crypto revolution. People in these countries have taken advantage of the more advanced banking infrastructure to access cryptocurrencies.
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The company also took it upon themselves to provide seminars in which current users come together to discuss the recent trends in the cryptocurrency market. Then they also go to universities where they aim to create awareness for cryptocurrency among students.
“As early pioneers in this industry, we feel we have to share our knowledge and excitement with the world as best as we can. It’s about ensuring this happens across the board for consumers, the media and broader stakeholders. For the growth of the industry, Reitz believes that crypto companies must work with the regulators, and not against. We believe regulation will bring greater clarity, protection, and trust which will help cryptocurrencies transition to mainstream use,” he concluded.
Luno has taken upon themselves to be an exemplary leader in educating people about cryptocurrency and also providing an easy and effortless transaction field.