Why is Bitcoin so popular in South Africa?

The first point is: inward and outward remittance. South Africa's remittance market continues to grow, which is caused by rural-urban migration and the influx of migrant workers from neighboring countries. By 2023, the country's remittance market is expected to reach 34 billion rand (about 2.3 billion US dollars). Bitcoin provides a cheaper option for sending money to relatives in rural areas of South Africa or neighboring countries. MariusReitz, Africa general manager of Luno, a cryptocurrency trading platform, commented on the role of bitcoin and cryptopayment in the remittance field in the country.

Most of South Africa's funds have flowed to other countries in the same region of Southern Africa, some of which are informal, mainly because of the high cost and complexity involved. We must reduce the cost and complexity of seamless transfer of funds across the African continent.

The second point: high-tech financial literacy. South Africa remains the only financial technology center in Africa. According to the data of the United Nations Economic Commission for Africa, South Africa accounts for 365,438+0.2% of financial technology start-ups on the African continent. This relatively high financial technical literacy also extends to the adoption of cryptocurrency. Bitcoin is an extension of the payment system that the South African public is already familiar with, and it has been widely used in many aspects. As far as people without bank accounts are concerned, South Africa also runs counter to the norms of sub-Saharan Africa. Although more than half of the population in sub-Saharan Africa does not have a bank account, more than 80% of the population in South Africa does.

The third point: Rand's instability. The South African rand (the country's legal tender) is the most volatile currency among the "major currencies". Like other countries experiencing such fluctuations, Bitcoin is a viable option. According to Reitz's data, the daily bitcoin transaction volume in South Africa averages 90 million rand ($6 million). According to CoinDance's data, in 20 19 and 10 months, the cryptocurrency of 1 50,000 reais (110,000 USD) was traded on average through the peer-to-peer platform Localbitcoins.