How have different African countries approached crypto adoption?

May 11, 2022|Jonathan Ntege Lubwama

In 2008, Satoshi Nakamoto shared a paper titled Bitcoin-A Peer to Peer Electronic Cash System to a mailing list discussion on cryptography. The following year, bitcoin software was made public. Bitcoin and other cryptocurrencies were created for people to send money on the internet free from central banks' control even though they would be used like traditional currencies.

At this point, bitcoin had no value until 2010 when someone exchanged 10,000 bitcoins for two pizzas. But today, the situation is very different, as the biggest proponents of crypto argue that we now live in a decentralised world.

Key takeaways:

- The appetite for cryptocurrencies in Africa grew exponentially between July 2019 and 2020, at 1,200% against the global average of 880%

- African governments are caught in a delicate balance between protecting the status quo of traditional banking and fostering blockchain innovation

- The majority of governments have chosen to be neutral in what appears to be a preference for observing how cryptocurrencies evolve before committing to a final regulatory stance. However, a few have banned it or limited its use

But cryptocurrencies have their flaws. For example, Bitcoin is created through mining, which consumes a lot of energy. Miners use powerful computers called mining rigs to try and solve complex math equations. The miner who solves the equation gets a new bitcoin added into circulation. The catch is that the global bitcoin network