When it comes to crypto-assets, lack of regulations may impact adoption from a majority of users that are still trying to understand the world of crypto assets and looking to get involved. And even though stringent regulations put in place are slowing down innovation, they are put in place to protect consumers and establish loyal competition amongst various operators. But the question remains- is there a place for digital assets on the African content?
With the digital revolution and the introduction of 4IR, digital assets are the future as more users are embracing the digital world around the globe. And fortunately, with regards to regulations and financial institutions providing custody of digital assets as well as merchants accepting payments in crypto-assets this abrupt move has influenced others to shift and encourage massive adoption.
And the sudden positive global sentiment is helping in a way because the crypto market is maturing. This shift has seen banks coming on board and embracing the idea of providing custody of digital assets such as Bitcoin and Ethereum.
And like the saying goes “when you cannot beat them, join them,” and this is what we are currently witnessing globally. And international industry leader, VISA recently announced its support for blockchain rails that will ensure payment processing to include Bitcoin and other trusted cryptocurrencies.
More people are looking for better ways to make money, and investing is one way to create wealth. However, there are still those who are still learning about the ins and outs of investing; while others are taking on measurable risks to tap into the new world of investing through digital assets. Either way, the future definitely will reshape our thinking around how we perceive the internet and its value, and the driver will be cryptocurrencies or crypto assets.
Smart devices are used as great mediums to move digital assets. The advent of IoT is also pushing this agenda further. Digital transformation is influencing the demand, but what has accelerated the demand amongst savvy users and others is the global pandemic? Its the lack of trust in financial institutions, the COVID stimulus packages world-wide that poured into the stock market and crypto markets. This move has transformed the way gamers consume content and how they are incentivised for their gaming experience. Users are remunerated for their efforts in cryptos as they play and build their ecosystems
Full digital transformation in various industry sectors, incorporating blockchain technology to enforce trust where it matters most, remunerate people through crypto-assets automatically for their contribution in numerous activities they do and or content they produce. Blockchain technology is here to stay and has already disrupted many industry sectors, while cryptocurrencies are a new way to perceive value in everything we do.
Even though Africa remains in a state of leap-frogging. As it embraces what others have, its journey of implementing through trial and error has left it lagging. Fortunately, Africa is no longer in a wait and see mode, it is leveraging these advancements to disrupt processes and improve or change traditional methods. Other countries may not necessarily have the infrastructure to do that, or the regulatory landscape to start adopting this digital transformation, more countries are taking note and availing resources to make things move in the right direction.
The spotlight is on cryptocurrencies because the government is still hesitant to embrace it, which in turn is creating interest and adding to users curiosity and hopefully will result in faster adoption.
So is there space for digital assets in Africa? Digital assets will help Africa become a formidable force and attract investors by making trading easier and borderless. It will also redefine how business is run and make transactions much more efficient.
About John Lombela
Managing Director of African Investment and Technology company, Cryptovecs Capital, John Lombela is a visionary entrepreneur that is leading the discussions about the potential of blockchain technology in the African market.
Cryptovecs Capital invests in Cryptocurrencies and Blockchain-enabled technology companies and John has been at the forefront of the effort to educate the public about the immense benefits provided by blockchain technology.