After El Salvador made Bitcoin legal tender, many studies have been into its use and effect in the country, with sometimes very conflicting outcomes. It was therefore long doubt that more countries will use crypto as legal tender.
Africa is the content with the highest number of peer-to-peer transactions in Bitcoin and other cryptocurrencies. And most payments are handle by mobile phone. That is why we are currently working on setting up a payment system via the lightning network . In addition, the transactions do not run through the Bitcoin blockchain itself, but a layer ( layer 2 ) that is built over it. A major upgrade of Bitcoin, as it can only handle 7 transactions per second, compar to 24,000 of the VISA network.
By using lightning, transactions are fast and very cheap. It that 4 cents per transaction. Compar to the previously by parties such as Western Union (10-20% per transaction in African countries), this is a relief for countries with little economic strength.
Of course, there are always risks associat with using blockchain technology. The base is very secure, because of the cryptographic encryption and decentraliz way of working. This prevents hacking, DDOS attacks and the like. But when it comes to tokenization, it is important to monitor the entire process very carefully, because we now see, for example, how many scams are floating up in the tokenization of digital content and art (NFTs). Bitcoin’s volatility is of course also something that needs to be look at closely. Of course Marketing Directors Email Lists you don’t want the poor population to be unnecessarily affec by large price drops. That is why you can already see in El Salvador that extensive use is made of the Bitcoin system, but after the transaction has been perform, everything is immediately convert into fiat money: dollars.
A boost for countries with little economic clout?
The plans of the Sango project in the Central African Republic are comprehensive. More new initiatives will be launch in the near future, from a Bitcoin city and crypto island to crowdfunding infrastructure projects, voting via blockchain and even its own national cryptocurrency, the Sango coin . I think it’s very special to see a country that dangles at the bottom of all world rankings, so fully committ to the use of technology to further develop the country. If the tokenization of the commodities and implementation of Bitcoin as a payment system is successful, it could give a huge boost to the development of the country and set a precedent for other countries in the region.