Cryptocurrency becomes the new thing in Africa. People shift for stable alternatives aftertheir unstable local currencies. Many people believe Donald Trump’s return to the WhiteHouse in the midst of all these changes in global politics and therefore his policies mayboost the cryptocurrency industry.He pretends to be a “crypto president” promising policies that would benefit the industryduring his campaign. Some of the bolder moves he made were on creating a strategicBitcoin reserve and plans to form a crypto advisory council to advise in matters concerningcrypto regulations.He further proposed that U.S crypto assets would be exempt from capital gains tax. Thesewere held as measures to loosen the environment for crypto businesses.This approach differs from that of the Biden administration which acted harder on theindustry. Moreover, the U.S. Securities and Exchange Commission (SEC) filed lawsuitsagainst companies like Coinbase and Binance during the Biden tenure.Many members of the crypto world believed that these lawsuits created uncertainties andmade it more difficult for crypto businesses. On the other hand, the expected Trumpadministration is likely to provide clearer rules and less regulation that may only mean moregrowth in the industry.Adoption of cryptocurrencies is already growing worldwide and especially in countries withpoor economies like Africa.African individuals are increasingly shifting from the use of cryptos among other things dueto the risks associated with a local currency like in the case of Nigeria and its Naira whichhas lost so much value.Stablecoins which are cryptocurrencies linked to the U.S. dollar are also becoming morepopular as they offer a safer alternative to unstable currencies.The victory of Trump increased interest in cryptocurrencies by igniting global financialconcern. Due to economic uncertainty, digital currencies are a desirable substitute in Africancountries. The Bitcoin explosion in Africa is being driven by younger, tech-savvy people.In areas where traditional banking is scarce, cryptocurrencies offer financial inclusion.
Although some critics argue that crypto is often used for illegal activities, studies show thatthis is not a major issue. According to Coinbase’s CEO Brian Armstrong less than 1% ofcrypto transactions are linked to illegal activities compared to 4% of cash transactions.With the rise of cryptocurrency in Africa more people are gaining access to financial serviceseven in areas with weak banking systems. As Trump’s policies potentially reshape the globalcrypto landscape, Africa’s crypto movement is expected to grow even further offering moreopportunities for people in need.
