CRYPTOCURRENCY GROWTH IN AFRICA

Kenya, Nigeria and South Africa are the leading countries in Africa in the uptake of cryptocurrencies.Leading African exchanges such as Luno and Golix have added altcoins such as litecoin to meet the demand for bitcoin alternatives
South Africa’s first Cryptocurrency ATM was opened in Johannesburg in May. It enables users to make crypto currency transactions even without a bank account. The South African reserve Bank is actively trying to capitalize on crypto assets through regulation. In Kenya Entrepreneurs have started mining cryptocurrency, while businesses in Nairobi have started accepting Bitcoin has a payment method. In Ghana, young Fintech entrepreneurs have developed the country’s first official digital currency,Finch
Nigeria has recently allowed banks to trade at the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) .This has encouraged traders to send foreign currency using Bitcoin. This highlights the cryptocurrency usefulness in increasing African remittance costs
Policymakers across Africa have some legitimate concerns on the use of cryptocurrency.Among this is the risk of crypto asset crime, including terrorist financing, money laundering and tax evasion. More use of crypto currency will inspire new developments in fintech and digital payments platforms. This indicates Africa is willing to be an important player in the international crypto currency market.

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CHANGES IN CRYPTOCURRENCY IN THE LAST 48 HOURS

CHANGES IN CRYPTOCURRENCY IN THE LAST 24 HOURS
The cryptocurrency market has stabilized from its sharp drop in the morning which saw major tokens losing between 3 and 7 percent in value. Bitcoin is trading at around $7,036 at press time, down just half a percent on the day. Bitcoin yesterday broke through the $7,000 threshold for the first time since August 8, and is trading around $300 higher than just a couple of days ago, August 27. There is a strong upward trend on Bitcoin.
Ethereum is trading around $296 at press time, up 1.8 percent on the day and coming close to reclaim the $300 price point – which it last held August 20. On August 28, the altcoin saw the first major upswing in price performance after a faltering week range bound between $270-280. Ethereum is now up a bullish 9 percent on the week; on the month, losses have closed down slightly to a still weighty 36.6 percent
EOS meanwhile stands out from the crowd, seeing growth over the past 24 hours of over 12 percent. The other exception to the group is IOTA (MIOTA), up almost 8 percent on the day and capping two days of astonishing growth to trade around $0.75 at press time.

ASPECTS IN REGULATION IN RESPONSE TO THE FUTURE OF CRYPTOCURRENCIES

Even before the advent of cryptocurrency there was concerns on how centralized virtual currencies may limit a country’s ability to control inflationary pressure. The Chinese Q-coin which was adopted by online entrepreneurs raised concerns about an increased money supply outside the government, as well as difficulty in imposing taxation. This led to limits in issuance of the currency. (Lehdonvirta & castronova 2014)

A Number of regulators have devoted an increasing amount of attention to cryptocurrency in recent years. In most regulatory response to cryptocurrency in Europe, Bitcoin has not been believed to fulfill the criteria of a currency. Sweden has however has required virtual currency exchanges to register with the financial supervisor while France and German have declared that Bitcoin related activities are subject to authorization. Within the EU, there is no unified approach of virtual currency payment

Benefits of digital currencies include faster 24 hour transactions, particularly for cross-border transactions. This theoretically allows very large international transfer with no capacity for authorities to freeze or reverse payment. Given the irreversibility of transactions in virtual currencies. The ECB has been considering monetary policy implications from the introduction of cryptocurrencies from 2012, In most recent study the ECB suggested that due to high price volatility and low acceptance rate, the Bitcoin could not yet be regarded as a full form of money

With regard to enacting regulation the U. K Government has set a series of steps which include AML regulation pertaining the digital currencies in UK to ensure that law enforcement bodies are capable to combat crime in digital currency space. Outside the EU and U.S and China the regulatory activities regarding cryptocurrency has been limited to warning about its nature as a non-state backed currency and price volatility. A common factor in recent regulatory response has identified that more promising perspectives of virtual currencies lie in the distributed ledger technologies. The U.K Government while identifying barriers that would prevent digital currencies from gaining widespread acceptance has payments has identified the associate distributed ledger as having a promise for the future of cryptocurrency

We can conclude that Cryptocurrency has not gained widespread acceptance, its use an investment product has also remained low. It is believed that this will change as greater understanding of theses cryptocurrencies are understood by regulators, exchanges and the business community