To what extent Kenya is adopting cryptocurrencies
Kenya is one of the prominent countries on the African continent, and the people of Kenya are getting more aware of the opportunities that might change their life. One of the biggest investment opportunities towards which the nation is moving rapidly is the acceptance and investment of bitcoin and other cryptocurrencies.
Besides the fact that the central bank of Kenya warned the citizens regarding bitcoin volatility, still, some businesses are welcoming payments in the form of bitcoin. Investing in bitcoin is easy, and could be done through platforms like the crypto engine app.
It is reported by the blockchain Association of Kenya that the number of bitcoin transactions is increasing rapidly in the country, for a country like Kenya the pace at which people are embracing bitcoin is extraordinary. Furthermore, it was also estimated that more than $ 1.4 million worth of bitcoin transactions were accounted for.
As cryptocurrencies are digital money which is considered intangible and the only physical item involved is a hard drive which is used to keep an offline reserve of bitcoin. The virtual currency could be used to make purchases in real-time for real products and services, like to buy a car, as a method of payment, or to book a hotel.
There are wallets in which digital tokens are stored and anyone who holds these token can send them to other users. Cryptocurrencies are backed and supported by blockchain technology, which is represented by blocks of the ledger in which transitions are recorded and secured. There is no regulatory body that overlooks the cryptocurrency system and that makes cryptocurrency, a riskier investment.
Blockchain technology is also used for other tech purposes to solve problems, bitcoin was the first finest product of blockchain which is now considered the most traded cryptocurrency in the world.
Many small businesses ha started to use bitcoin in order to avoid theft faced by traditional methods of payments, now businesses accept bitcoin payments, and opening doors to embrace cryptocurrency usage is a need. The number of people ever get involved in bitcoin transaction in Kenya is around 40,000.
The biggest problem faced by bitcoin holders in Kenya, is the constraints from the banking system, as banks do not allow anyone to open an account if the person is dealing in bitcoin. This scenario discourages the use of bitcoin among the Kenyan population as bitcoin holders restricted to convert bitcoin into cash.
The blockchain association in Kenya is trying hard to convince the people and authorities to see the brighter side of the situation. As the world is embracing cryptocurrencies and many developed economies have made them legal like UK and US.
It is important to understand the benefits of it besides knowing the vulnerable impact that it could have on the digital financial system and native currencies.
The implementation and legalization of cryptocurrencies could bring ease in transactions by reducing transaction costs. Secondly, it would be much quicker to send and receive money via cryptocurrencies as compared to the traditional banking system.
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