{"id":727,"date":"2021-08-10T18:44:42","date_gmt":"2021-08-10T18:44:42","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=727"},"modified":"2021-08-11T07:15:31","modified_gmt":"2021-08-11T07:15:31","slug":"african-central-banks-want-piece-cryptocurrency-market","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2021\/08\/10\/african-central-banks-want-piece-cryptocurrency-market\/","title":{"rendered":"African Central Banks Want a Piece of Cryptocurrencies"},"content":{"rendered":"\n<p>Several African countries are looking to launch their own virtual money, backed and <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/qz.com\/africa\/2015047\/africas-central-banks-are-exploring-digital-currencies\/\" target=\"_blank\">issued by central banks<\/a> as their appetite for cryptocurrency grows significantly across the continent.&nbsp;<\/p>\n\n\n\n<p>Six African countries\u30fcaccording to a tracker from US think-tank Atlantic Council\u30fcare <a href=\"https:\/\/www.atlanticcouncil.org\/cbdctracker\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">among 81 countries<\/a> working to revolutionize global finance.<\/p>\n\n\n\n<p>According to the tracker, Nigeria, despite recently <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/qz.com\/africa\/1985223\/nigerias-crypto-ban-has-startups-and-traders-in-a-frenzy\/\" target=\"_blank\">banning cryptocurrency<\/a>, is taking the lead in Africa as it plans to launch a pilot scheme before the end of 2021.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"540\" height=\"236\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-4.png\" alt=\"African Central Banks Want a Piece of the Cryptocurrency Market\" class=\"wp-image-728 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-4.png 540w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-4-300x131.png 300w\" data-sizes=\"(max-width: 540px) 100vw, 540px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 540px; --smush-placeholder-aspect-ratio: 540\/236;\" \/><\/figure>\n\n\n\n<p>For one thing, over the last two years, the West African country has been exploring the option of a digital Naira. According to the country\u2019s central bank, Nigeria is looking to improve the efficiency of the flow of foreign remittances, its <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.reuters.com\/article\/ozabs-uk-nigeria-forex-idAFKBN2AZ06P-OZABS\" target=\"_blank\">second-largest foreign exchange earner<\/a> after oil. A digital currency could assist in this efficiency, the reason Nigeria is now pushing harder for digital currency adoption.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"624\" height=\"274\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-2.png\" alt=\"African Central Banks Want a Piece of the Cryptocurrency Market\" class=\"wp-image-729 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-2.png 624w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/Picture-2-300x132.png 300w\" data-sizes=\"(max-width: 624px) 100vw, 624px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 624px; --smush-placeholder-aspect-ratio: 624\/274;\" \/><\/figure>\n\n\n\n<p>Other countries like Ghana, Morocco, Tunisia, Kenya, and Madagascar are still researching digital currencies.<\/p>\n\n\n\n<p>Ghana is working towards establishing a digital currency project called E-Cedi, and will prioritize blockchain technology-related projects. Morocco\u2019s central bank is also looking at the possibility of setting up a regulated digital currency ecosystem in the country, a development that comes after the country recently banned cryptocurrency.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Join our&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.community.ancstockinvestments.com\/\" target=\"_blank\">Trading Community<\/a>&nbsp;for more signals!<\/h5>\n\n\n\n<p>Tunisia is exploring ways to advance its e-dinar, a blockchain-based digital version of the Tunisian dinar while the Central Bank of Madagascar has embarked on a project to study the issuance of a digital currency called e-Ariary.<\/p>\n\n\n\n<p>Kenya is not left behind as the East African country\u2019s central bank is also picking up interest in a regulated digital ecosystem in Kenya.<\/p>\n\n\n\n<p>Other economies like Tanzania, <a href=\"https:\/\/ancstockinvestments.com\/blog\/2021\/06\/21\/south-africa-walking-different-path-cryptocurrency\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">South Africa<\/a>, and Egypt are also exploring the best avenues and implementation strategies for a regulated regime.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What sparked the sudden interest in cryptocurrency?<\/strong><\/h2>\n\n\n\n<p>It\u2019s still expensive to send money home from overseas. With digital currencies, however, it\u2019s much cheaper to send remittances to Africa. This high cost is a major motivator for the adoption of digital currencies by a growing number of African countries.<\/p>\n\n\n\n<p>According to Chainalysis in its <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/go.chainalysis.com\/rs\/503-FAP-074\/images\/2020-Geography-of-Crypto.pdf\" target=\"_blank\">2020 Geography of Crytocurrency Report (PDF)<\/a>, in June 2020, Africa only accounted for 29% of global retail share cryptocurrency volume, compared to other regions. In other words, roughly $3.7 billion worth of cryptocurrency was transferred to and from overseas addresses to those based in Africa.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"699\" height=\"458\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/retail-share-of-cryptocurrency-volume.jpg\" alt=\"\" class=\"wp-image-730 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/retail-share-of-cryptocurrency-volume.jpg 699w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/08\/retail-share-of-cryptocurrency-volume-300x197.jpg 300w\" data-sizes=\"(max-width: 699px) 100vw, 699px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 699px; --smush-placeholder-aspect-ratio: 699\/458;\" \/><\/figure>\n\n\n\n<p>A report from the World Bank shows that most individuals pay an average of <a href=\"https:\/\/www.worldbank.org\/en\/news\/press-release\/2020\/04\/22\/world-bank-predicts-sharpest-decline-of-remittances-in-recent-history\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">between 9% to 15% in transaction fees<\/a> to send remittances of below $200 to Africa. That\u2019s way higher compared to a global average of 6.8%.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The future of crypto in Africa<\/strong><\/h2>\n\n\n\n<p>Across the globe, central banks (<a href=\"https:\/\/bisontrails.co\/cbdc-intro\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">80% of them<\/a>) are exploring use cases for the implementation of digital currencies involving central bank digital currencies (CBDCs). Some are already testing proof-of-concept programs with cryptocurrency.&nbsp;<\/p>\n\n\n\n<p>With governments across Africa accelerating efforts to adopt regulated digital currencies, it\u2019s only a matter of time before CBDCs become a norm in Africa.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Join our&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.community.ancstockinvestments.com\/\" target=\"_blank\">Trading Community<\/a>&nbsp;for more signals!<\/h5>\n","protected":false},"excerpt":{"rendered":"<p>As Africa\u2019s appetite for the cryptocurrency market grows, African central banks are looking to create and own digital currencies, inside secure ecosystems.<\/p>\n","protected":false},"author":3,"featured_media":731,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,3,10],"tags":[155,96,30,143],"series":[],"ppma_author":[463],"class_list":["post-727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-investments","category-stock","tag-africa","tag-crypto","tag-cryptocurrency","tag-digital-currency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>African Central Banks Want a Piece of the Cryptocurrency Market<\/title>\n<meta name=\"description\" content=\"As Africa\u2019s appetite for the cryptocurrency market grows, African central banks are looking to create and own digital currencies, inside secure 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