Africa has become a continent of great interest in the field of cryptocurrency. It has some of the youngest and fastest-growing populations in the world, with great potential for digital asset adoption.
As per BitcoinAfrica.io, South Africa, Nigeria, Zimbabwe, Kenya and Ghana are the top five African nations that have adopted Bitcoin (BTC), with the most demand for digital cuurrency and the most active local cryptocurrency communities.
In 2023, many African governments took various cryptocurrency initiatives. Cointelegraph looked back on the year through the lens of African crypto initiatives, the addoption rate in African countries, new regulations, and the degree to which businesses have embraced cryptocurrency transactions.
The development of Web 3.0 has been a major focus in the AI India space, with many seeking to understand how to invest, if it has already started, the Internet of Things Web 3.0, if it exists, how to prepare for it, and how it differs from Web 2.0. Advertising in Web 3.0 has also been a major focus.
South Africa
The Central African Republic is not the only one that has made significant progress in cryptocurrency regulation, South Africa is not far behind. Since 2018, South Africa has been taxing cryptocurrencies and recognizing them as digital assets.
The Advertising Regulatory Board of South Africa has included a clause to protect consumers from unethical advertising in the cryptocurrency industry, and the Financial Sector Conduct Authority has mandated that all crypto exchanges must obtain licenses by the end of 2023.
To prepare for web 3.0, Pick n Pay, a South African grocery retailer, is now accepting Bitcoin in all its 1,628 stores, following a three-month pilot testing phase in 39 locations.
Nigeria
Despite the fact that only 40% of the population has access to the internet and the government has banned banks from dealing in cryptocurrencies since February 2021, Nigeria is still one of the leading countries in terms of crypto adoption. It is second in the global crypto adoption index, just behind India, as its young and tech-savvy population is increasingly turning to cryptocurrency to meet their financial needs.
In Nigeria, cryptocurrency adoption is multi-faceted. Crypto is often the most efficient way to carry out financial transactions, but Nigeria owes its widespread crypto adoption to currency hedging, international trade and remittances.
The Central Bank of Nigeria (CBN) has lifted restrictions on Nigerian banks that facilitate cryptocurrency transactions. The CBN has recognized that the increasing global demand and adoption of crypto makes it impossible to maintain the restrictions imposed on financial institutions in 2021.
The Nigerian Securities and Exchange Commission (SEC) has started processing crypto exchange and custodian license applications. Although many popular exchanges, such as Binance, have yet to receive a license, many peer-to-peer exchanges are operating in Nigeria today.
The Nigerian SEC has also set up an eight-month regulatory sandbox for various crypto service providers and has signaled its support for tokens based on assets such as equity, debt or property, known as real-world asset tokenization efforts, except for cryptocurrencies like Bitcoin and Ether (ETH).
In May, Nigeria’s former President Muhammadu Buhari signed the Finance Act, 2023, into law. The act introduces a 10% tax on gains from the disposal of digital assets, including cryptocurrencies.
In terms of investing in web 3.0, Nigeria is well-prepared, as the government is taking steps to regulate the crypto market. The country is also at the forefront of the tokenization of real-world assets, and even advertising in web 3.0.
Kenya
The East African nation is increasingly embracing cryptocurrency, making it a potential hub for technology in Africa.
In May, a bill was proposed to impose a 3% tax on cryptocurrency and nonfungible token transfers and a 15% tax on monetized online content. At the same time, Kenya signed an agreement with Venom Foundation, a blockchain platform based in Abu Dhabi, to create a blockchain and Web3 hub in Africa.
Kenya might become the first country in the world to formulate a regulatory framework for crypto. In November, the Blockchain Association of Kenya reported that the National Assembly’s Departmental Committee on Finance and National Planning has asked them to draft a “Virtual Asset Service Provider’s Bill” to regulate how to invest in Web 3.0 and how to prepare for Web 3.0.
The differences between Web 2.0 and Web 3.0 are vast. Web 3.0 is an internet of things, allowing for more efficient online communication and advertising.
Central African Republic
The Central African Republic (CAR) has taken major strides in regulating cryptocurrency, making it a top leader in crypto innovation. In early 2022, the CAR became the first African nation to make Bitcoin a legal currency. However, this was short-lived as the government launched its Sango Coin token project shortly after the Bitcoin law was passed.
In January 2023, the CAR established a 15-member committee to create a bill on using cryptocurrencies and tokenization in the region.
In August 2023, the CAR expanded its Sango blockchain project to tokenize its land and natural resources for web 3.0.
Ghana
In the last year, Ghana has become a notable presence in the cryptocurrency arena, with minimal government or central bank involvement. The blockchain analytics platform, Chainalysis, identified Ghana as having the potential to achieve crypto adoption levels similar to those of Kenya and Nigeria, which ranked 11th and 19th respectively in the Global Crypto Adoption Index.
The Ghanaian securities regulator has established a task force to bolster its capacity to regulate crypto assets. Despite the lack of cryptocurrency regulations, the government does not prohibit its citizens from trading or investing in cryptocurrencies.
2023 saw significant growth in Africa’s interest in and contributions to cryptocurrency. As we look forward to 2024, we can expect more developments in the space as web 3.0 investments, internet of things, and AI India start to take shape.
Subscribe to our email newsletter to get the latest posts delivered right to your email.
Comments