Mobile payment systems are widely distributed wherever no banking facilities.
Was no exception and the African continent, throughout 2017 cryptocurrency in great demand. This led to the fact that cryptocurrencies in Africa was trading with a premium of 40%, significantly higher than the world average.
In Africa and South-East Asia most of the population without a Bank account or other traditional financial services. Many of them have moved on cryptocurrency apps even without creating a Bank account.
For example, the application “Teller” from Coins.ph is already used by more than 2 million Filipinos, and many of its users have never had a Bank account. A new option was created to simplify the process of remittances in the countries of South-East Asia.
With the help of mobile applications “Teller”, the user can transfer money in local currency to the account of a friend or relative. The program is geographically close to the user “cashier” who is willing to exchange the required amount in local currency to bitcoins. In turn, the cashier transfers the equivalent in bitcoin to the address of the electronic purse by charging a small Commission. The maximum amount available for transfer, does not exceed $ 50.
In areas where there is no banking, cryptocurrencies have already replaced traditional banking. Lower Commission, cheap transfer, shops, are able to perform some of the functions of banks, a fully mobile use and the possibility of speculative trading — all these advantages provide cryptocurrency.
In 2014, only 34% of adults in countries of Africa South of the Sahara had its own Bank account. 12% of adults in the region were the holders of money to the mobile accounts. On average, while the rest of the world, there were only 2% of users.
This creates opportunities for the introduction and wide distribution of crypto-currencies in African countries that may become the world’s largest market.
At the same time, the African governments did not regulate the cryptocurrency, and inflation and economic mismanagement in some regions led to the adoption of barter systems and alternative currencies. The most prominent example is Zimbabwe, which was forced to move to the US dollar, as the protracted hyperinflation devalued their own currency. This was followed by a period of relative stability until the shortage of the American dollars is not made itself felt. Similar circumstances are faced Nigeria, South Sudan and Venezuela, which led to the widespread use of cryptocurrency in these States.