The advantages inherent in the cryptocurrency payment measure is a panacea to some African communities that are unbanked and some countries where money transfer attracts a high fee for processing.
The Difficulty In Money Transfer And Payment
A documentary by CNBC titled “Bitcoin: Boom or Bust,” reveals the hardship of some African communities in transferring money to their loved ones. This is usually caused by the weak banking system, a high fee for a transaction, and an extended period of days before the transaction is carried out.
This ordeal is summed up in the documentary, where an uber driver, Kuda Kwashe, in a South African local region Khayelitsha, explained the usual ordeal in the transfer of money to his family members.
He stated that there are three options for money transfer in the region. The first is bank transfer that requires several days before it is fulfilled. The second is the wired service which takes 10 percent of a transaction and the third option is transfer through a commercial bus, on the ground of certainty of delivery to the destination and also not robbed along the way. Kwashe noted that he wish there are other convenient means of transferring money apart from the options available.
The same experience in Khayelitsha is similar to some other regions of Africa. The United States new sanction on Iran has made money transfer and transaction difficult for its citizens. The event has made PayPal and MasterCard severing ties with the country. A better option out of this ordeal is cryptocurrency payment.
The fall in the value of the Turkey national currency due to sanctions has made the best option for transfer of money; cryptocurrency.
Notedly, the high fee of most wired transfer has made money transfer and receiving for most African countries difficult, especially as it pertains to moving to other countries.
Cryptocurrency Payment, The Way Out
Against the general opinion that cryptocurrency is only meant for speculative purchase, the digital currency also offers fast, easy and low fee money transfer and receiving means. Ripple, Tron among others have excellent features that could solve the menace most of the communities are going through.
Neuner states that “my view is that this is where the blockchain should start. In the US or sophisticated countries … the blockchain is kind of like a fun thing. It’s a movement against centralization, and it’s a fun technology game that everyone is playing. But it’s not a necessity. You certainly don’t need it. In Africa, you need it.”