Most African countries are willing to regulate Cryptocurrency, but none of these countries is willing to take the lead in responding to the rise of the digital currency on the continent.
Regulating Cryptocurrency in Africa
The crypto revolution has found its way into Africa, with most of the teeming youthful population trading in one form of cryptocurrency or another. Though proper and adequate education on the cryptocurrency lacks on the continent, most of the traders don’t mind, as they see the digital currency as a way of getting out of abject poverty.
With this trend in sight, the government of most of the countries is willing to regulate the digital currency, but none of them wants to take the lead, as they adopt the waiting game, patiently waiting for another to start, study the outcome before regulating the currency in their own country.
A report from Togo-based Ecobank, which is also one of the leading independent banking group operating in nearly 40 countries in West and Central Africa, after examining government response to cryptocurrencies in the 39 sub-Saharan countries, found out that regulators are applying the’ wait and see’ approach, and that non -of them is willing to lead the charge.
The report stated that:
African countries appear to be looking to their neighbours to regulate and innovate first, and learn from their mistakes, rather than being the first mover.
African governments worry that if its citizens become overexposed to cryptocurrency investments, the repercussion of a future crash could be felt in the broader economy, hence their skepticism of licensing their use.
No Uniform Position
Of the 39 regulatory regimes surveyed, more than half had yet to make a public stance on cryptocurrency.
Only South and Swaziland are adopting a generally favorable permissive stance on the asset class but stopping short of providing them with full legality, while Namibia is issuing an outright ban on the digital currency.
Meanwhile, the leading opposition party in Nigeria has vowed to invest heavily in Cryptocurrency, if they win the general election next year. The party through its candidate, Alhaji Atiku Abubakar, said that the digital currency would help the country grow immensely, provide jobs for its teeming youths, while also assisting the government to stabilize the economy.