A recently premiered CNBC documentary ‘Bitcoin: Boom Or Bust’ takes a closer look at the emerging cryptocurrency hub– South Africa. The residents of developing urban areas and poverty-stricken villages are expected to adopt Bitcoin en masse due to the absence of any viable payment solutions.
Crypto as a necessity
While the majority of people in America and Europe still feel iffy about cryptocurrencies, viewing them as a highly risky investment, South Africa residents simply don’t have a choice. Here, cryptocurrencies are more than just than a new trendy technology or a revolt against centralization– it is a necessity.
CNBC’s Melissa Lee and a prominent crypto investor Mr. Ran NeuNer took a trip to South Africa in order to find out what exactly fuels the rapidly increasing interest for crypto. They conducted an interview with an Uber driver named Kuda Kwashe who migrated from Nigeria in order to work in Cape Town.
He has a family back in Zimbabwe, but sending them money is extremely difficult since an ordinary bank transfer takes up to a week. Kwashe claims that he can still use a bank transfer (the fees are widely expensive) or transfer money with the help of a bus driver. While all these options are unreasonable, there is only one solution left that ensures fast and secure transactions– cryptocurrencies.
Crypto adopting is booming with regulatory uncertainty
Research data shows that Africa is slowly becoming a crypto hub with plenty of money being poured into its local fintech startups. Case in point: SureRemit, a leading Kenyan cryptocurrency exchange, which raised $7 mln during its ICO.
South Africa introduced generally positive crypto regulations, but it still failed to define crypto as an actually currently, sticking to the term ‘cyber token.’ Under the current legal framework, cryptocurrencies are treated as intangible assets, so they are still taxable. However, U.Today reported earlier how South African crypto traders overwhelmingly dodge taxes.