Crypto and blockchain adoption in Africa has skyrocketed over the past few years. There are many countries in the region that are showing increasing interest in the cryptocurrency market.
The adoption of cryptocurrencies and blockchain technology has increased further since the beginning of the Covid-19 pandemic. The pandemic has affected the already struggling economies of the region and worsened the situation.
One of the countries that struggled a lot in Africa was Malawi. Due to the lockdowns and other issues caused by the pandemic, the country’s economy suffered a lot. While amid the increasing vaccination numbers the country is slowly recovering from the losses of the pandemic, some believe that the recovery can be further accelerated by faster adoption of blockchain and crypto technology.
Many studies have been released over the past few years which indicate that the adoption of cryptocurrencies is booming in the region. Countries like Nigeria, South Africa, as well as Malawi, show increasing interest in cryptocurrencies. Even if the regulatory framework is not perfect to support crypto development, the interest from people is still very high.
There are many things supporting the increasing crypto adoption in Malawi as well as other African countries. One of the reasons is that people in the region have experienced a lot of problems with fiat currencies.
African countries are known for having high inflation rates. Because of this, the national currencies of the countries have experienced numerous price drops over the years. This has made it very hard for locals in the region to preserve their funds.
One of the ways to save, and even grow their money is to invest in cryptocurrencies. Many people in the region are doing so, which further supports the development of the industry in the region.
Crypto Trading in Malawi
Due to the increasing pressure and demand on high-quality crypto services, the Reserve Bank of Malawi has recently said that it might reconsider its stance towards cryptocurrencies. Some even say that the central bank is thinking about adopting a digital currency as a legal tender.
The Ethics and Compliance Manager of the central bank, Thabo Chakaka Nyirenda said recently that there is a serious dilemma in the country regarding the regulatory status of cryptocurrencies. He said that banning it could lead to further problems, such as forcing traders underground where the risks and dangers would increase drastically.
While cryptocurrencies, including Bitcoin, is illegal in Malawi, the changes might be coming after all. The Reserve Bank of the country has said that it does not recognize foreign investment in cryptos, saying that the bank will have consultations to come up with a plan about further crypto regulations.
While the country struggles to make any substantial decision about crypto regulations, many enthusiasts see the cryptocurrency market as well as the blockchain industry as an easier way out of the current situation.
Although not a legal tender, there are no restrictions for locals to buy and trade cryptocurrencies in the country.
Increasing crypto interest
The population of the country is showcasing increasing interest in the cryptocurrency market. There are many reasons for such high popularity of the crypto trading market. As already mentioned, one of the reasons is little to no trust in fiat currencies.
Another very important reason is how easy it has become to start trading cryptocurrencies. As of now, all traders need to become part of the crypto market is to find an exchange and open a live account.
What’s more, Malawi traders can invest in cryptocurrencies using trading robots. There are numerous companies that have created automated trading robots and they can be a great help for traders to not only analyze the market but also trade cryptocurrencies.
In Malawi, many crypto investors are using bitcoin robot trading, which offers them the opportunity to go on with their day and watch their money grow. Automated trading has become very popular around the world and it further supports the increasing popularity of crypto trading.
Amid such increasing popularity in the country, there is a bigger chance for the central bank of Malawi to make the decision to further support crypto development.
How Can Malawi Use Blockchain and Crypto Technology?
Like many other countries around the world, Malawi also suffered due to the Covid-19 pandemic over the past few years. While the country has already started its economic recovery, things are going a bit slow.
Crypto enthusiasts believe that cryptocurrencies and blockchain technology could help the local economy to recover faster.
Blockchain technology can be very helpful for Malawi as it can make transactions a lot quicker and more efficient. There are numerous industries using blockchain technology around the world, including healthcare, banking, and many others.
The adoption of cryptocurrencies is increasing a lot around the world. Due to the recent developments, some market enthusiasts believe that the Malawi government might change its stance towards cryptos and support its further development.