Massive Growth of Bitcoin in Botswana and Other African Markets

bitcoin botswana

This year has seen massive growth of Bitcoin in Botswana and other African markets.

In Africa, Bitcoin is being seen as an opportunity by its digital-savvy young populations.

Growth of Bitcoin in Botswana

Botswana doesn’t have the Bitcoin economies of Kenya, Nigeria and South Africa yet, but 2020 has seen dynamic growth in the community.

This is because “Bitcoin is for everyone”, says Botswana Bitcoin pioneer Alakanani Itireleng, who founded the Satoshicentre blockchain hub in 2014.

“It’s money for everyone, regardless of where you are coming from, your race or creed or whatever. So it’s the best,” she says.

The Bitcoin economy in Botswana includes new exchanges, meetups, a blockchain centrepoint and Bitcoin exchanging WhatsApp and Facebook gatherings.

Botswana has its first Bitcoin ATM, which allows Batswana a daily transaction limit of BWP50,000 (US$4,300).

Bitcoin ‘a practical’ solution

The cryptocurrency is a practical solution for many Batswana, many of whom don’t have access to banks.

The Bitcoin boom is being driven largely by payments from small businesses, as well as remittances sent home from migrant workers.

Bitcoin enables Batswana to use and receive money from anyone and to send it to anyone around the world.

Transactions are anonymous and users’ information is private.

Bitcoin is also being used to protect small businesses against currency devaluation and to enable growth.

Surge in Bitcoin investment across Africa in 2020

The digital currency’s characteristics provides Africa with a platform to reduce corruption, promote development and good governance.

Bitcoin users can send money to just about anywhere there’s an internet connection for relatively small fees and with no third-party interference.

This is an advantage that government-issued currencies can’t offer.

Fifteen cryptocurrency-related operations are reported to have begun in Africa in the past year.

Luno Exchange, which was established in 2013 in South Africa and the first of its kind to be based in Africa, now has 1.5 million customers in more than 40 countries worldwide.

Monthly cryptocurrency transfers to and from Africa of under US$10,000 – typically made by individuals and small businesses – jumped more than 55% in a year to reach US$316 million in June 2020, according to data from US blockchain research firm Chainalysis.

Much of the activity took place in Nigeria, the continent’s biggest economy, along with South Africa and Kenya.

This represents a reversal for Bitcoin, which, despite its birth as a payments tool, has mainly been used for speculation by financial traders rather than for commerce.

Reasons for Bitcoin growth

In Africa, young, tech-savvy populations have adapted quickly to Bitcoin.

There are many structural, economic and financial reasons for the increasing adoption of cryptocurrencies across Africa, including:

  • high inflation rates
  • volatile currencies
  • lack of banking infrastructure and services
  • centralised capital control
  • complex bureaucracies that complicate money transfers
  • increasing acceptance of cryptocurrencies as payments for services and products
  • Bitcoin’s decentralised system.

With more than a reported four million users, Luno claims that there has been a 79% increase in the number of new customers investing in Bitcoin for the first time since March 2020.

Reports indicate that the prices of several cryptocurrencies are spiking with Bitcoin recently reaching its highest level since January 2018.

Getting a loan from lamna Botswana

If you need funds to become part of the growing Bitcoin community in Botswana, to take advantage of an investment opportunity or to address a cash-flow shortage, we can help.

At lamna Botswana, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or valuable works of art.

For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.

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