Bitcoin’s value and that of other virtual currencies may have fallen over 80 percent from their all-time high in December 2017, but cryptocurrencies as a whole are still solving real-life problems in several countries. An instance of this is Kenya, an East African country where 9 cryptocurrencies have been developed in a bid to solve the cash flow problems in the nation, reports marketplace on February 25.
Kenya Experiences Cash Flow Problems
Reportedly, Kenya for some years now has been facing cash flow problems where very little money is in circulation. As such, it has affected the standard of living in the country. It has also brought about difficulties in getting funds to pay for good and services. However, Grassroot economics, a non-profit foundation brought a solution in 2018 where paper money was converted to digital currency.
The foundation with the help of a Swiss non-profit developed a cryptocurrency that is used to carry out transactions in several local government areas in the country. With this virtual asset, skilled and unskilled laborers are being paid without the hassles. The best part is, people right from their smartphones can send the digital currency to each other.
Kenyans Choose Cryptos For Daily Transactions
Further reports reveal that there are currently 9 virtual currencies being used in the area. On owning either of them, one can trade them for food items, clothes, and other necessities. These are people who are not just relying on cryptocurrencies for trading and making profits but to acquire their daily needs.
Despite this, central banks are still hammering on the risks involved with the trade of virtual assets ranging from fraud to price volatility. The Kenyan government, on the other hand, has asked a task force to look into the area of blockchain including digital money.
Bitcoin as a Means of Payment Declines Rapidly
BTCNN on February 26 made reference to Longhash’s report which reveals that Bitcoin payments have dwindled in 2019. However, a real-life use case of this nature may suggest otherwise. Even though the focus is not on Bitcoin, other virtual assets that are also a technology of the blockchain are being massively adopted for payments.
On February 25, BTCNN also informed of the account of a Venezuelan that Bitcoin has saved him and his family. Likewise, LocalBitcoin’s platform revealed that there has been a hike in Bitcoin trading volume in Venezuela. The South American country had traded about 2,000 BTCs in 2018 which was attributed to the level of inflation in the country and the falling rates of bolivars, the country’s fiat currency.