Generally, Bitcoins have got a lot of popularity. They are continuously thriving in South Africa even though the interest comes from a plethora of scams and fraudulent schemes with regards to investment. As per Google trends, the country ranks second for bitcoin searches globally.
Some Of The Reasons Why South Africans Love Bitcoin
1. Internal And External Remittance
The remittance market is continuously growing as bitcoin mining in South Africa is triggered by migrant workers from the proximity areas. The main focus here is that bitcoin tends to offer a cost-effective way for sending money to loved ones in the rural areas of the country and the countries in neighboring regions.
2. Higher Fintech Literacy
In Africa, South Africa is the only fintech hub, and so fintech literacy is relatively high, which also goes forward to mobile money adoption. In the majority of the constituents, bitcoin is just an extension to the payment system, which is already prominent in South Africa. South Africa also tends to be different from Sub Saharan Africa when it comes to the unbanked population. Thanks to mobile money penetration, the majority of South Africans find it relatively easy to deal with bitcoins.
3. Volatile Rand
As per recent researches, it was found that Rand is the national currency of South Africa, and among all the coins, it is one of the most volatile currencies. Bitcoin tends to be a fantastic alternative besides countries offering volatility.
4. Absence Of Stringent Regulations
Above all, South Africa hasn’t implemented a strict cryptocurrency policy that might hamper bitcoin Enthusiasm. Besides KYC compliance, the cryptocurrency space isn’t much regulated.
5. Instant Settlement
Thanks to blockchain technology, cryptocurrency tends to hold value. The cryptocurrency is relatively easy to use, and that is why it is pretty popular in South Africa. One needs to have a good internet connection, and quickly they become their banking system, and money transfers are successful.
Above all, the economy globally is moving towards a digital ecosystem. Be it money transfer or going paperless, cryptocurrency is a one-stop solution for all. Ideally, it is a platform to exchange common currencies, including USD. The main aim here is to exchange digital information, and it uses cryptography for security purposes. The government cannot take it away because the central authority does not issue it.