Best Bitcoin Exchange for South Africa
The crypto currencies are a transnational financial phenomenon. South Korea has so far been considered the hub of Bitcoin. But the potential of the digital currency is also being discovered in Africa.
Bitcoin is enjoying increasing popularity in South Africa and other developing and emerging countries. The digital currency is regarded as a safe haven from political and economic turbulence. Bitcoin is also increasingly becoming a means of overcoming financial obstacles: (1) the lack of conventional banking services and (2) partially limited access to foreign currencies, according to a report.
Bitcoin stock exchanges record growth
Mati Greenspan, analyst at eToro online trading platform, said there was a noticeable increase in South African Bitcoin traders on the platform amid last year’s increased political pressure. In South Africa, the number of new users trading Bitcoin on eToro from January to late November 2017 rose 671 percent over the same period last year, Greenspan said. According to Greenspan, interest began in March 2017 when South Africa’s Finance Minister, Pravin Gordhan, was dismissed and intensified again in November when S&P Global Ratings downgraded South Africa’s local currency debt to junk status.
A similar increase was seen in Brazil and the Czech Republic in 2017, although according to eToro data, no country seemed to share the same enthusiasm for Bitcoin as South Africans.
Werner van Rooyen, marketing manager for the Luno crypto-currency exchange, said in November in an interview with BusinessTech that thousands of transactions are made every week by South Africans. Despite the exponential growth, it is still almost impossible to say exactly how many South Africans invested in Bitcoin last year or are currently invested in the currency. In fact, it’s pretty easy to get a Bitcoin wallet (with a BTC receiving address) and create multiple receiving addresses.
Bitcoin mining almost impossible
In Africa, the supply of electricity is a major problem. Power outages are a daily occurrence in many parts of the continent. For this reason, Bitcoin mining is virtually impossible. Africans have another way to earn money with crypto currencies. There is a slow accumulation strategy, but one where they are less at a disadvantage. From Steemit to Yours.org there are many sites that reward users in crypto currencies.
Bitcoin solves banking and money transfer problems for the first time
In Africa the smartphone is always at hand and with it the digital wallet. In parts of the continent – especially at trade hubs such as Lagos, Nairobi and Johannesburg – a small but growing number of people are finding that crypto currencies are a cheaper solution to an expensive problem – transferring money across borders. The Bitpesa technology platform uses Bitcoin as a medium for cross-border cash transfers. It’s cheaper, especially if there’s a lack of dollars in the country or restrictions on access to dollars, says the BBC. It is also faster because there is no need to go through lengthy and complicated bank approvals.
In Nigeria, when the government controlled access to the US dollar during a financial crisis, Bitcoin made it easier for companies to transfer cash abroad, which increased interest in crypto currencies in the country, says BBC. In Simbabawe, where there is political and economic instability, Bitcoin has become an institution where you can store assets and easily buy goods and services from abroad.
Central banks rather critical
But the central banks are also vigilant in Africa. The Nigerian, Kenyan and Ugandan central banks are warning against entering the new and unregulated market. The Governor of the Central Bank of Kenya even went so far as to say that digital currencies are a kind of ponzi game because of their high volatility.
Bitcoin classes overcrowded
In Africa there are courses for Bitcoin beginners. These courses are very popular with university graduates who can’t find a job, according to the BBC. Blockchain technology also has a big appeal for young Africans.
Bitcoin hinders the creation of single fiat currencies
Besides the increasing interest of the population in the crypto currencies, there is a problem, because the central bank of Tanzania is planning its own currency. It is to become a legal tender in Burundi, Rwanda, Tanzania, Kenya, Uganda and Southern Sudan. However, the development of a new traditional currency is questionable against the background of the potential of crypto currencies. Against this background, the Bank of Tanzania (BOT) is now working with crypto currency experts from the UK to find out whether a fiat currency still makes sense. EAC members believe that the increasing popularity of digital currencies is making things more difficult for unified currency plans.
About South Africa
EU citizens do not need a visa for a holiday stay of up to 90 days. The passport must be valid for at least thirty days after return and be machine-readable. In addition, the travel documents must still have at least 2 free pages for visas on departure. The same applies to child ID cards or child passports, which are only valid with a photo. When travelling on from South Africa to other countries with a subsequent return to South Africa, travellers should therefore make sure that they still have free pages in their passports for all entry and exit stamps. Children’s entries in a parent’s passport are no longer valid since 26.06.2012. Each child needs its own identity document. Non-EU citizens must apply for a visa at the responsible embassy or consulate. Passports must not have been extended.
Hints for the entry of minors
On 26.05.2014 new regulations for travel by minors came into force. Persons under the age of 18 must present an international birth certificate when entering and leaving the country as of 01.06.2015. If the country of birth does not issue international birth certificates, a national birth certificate and a certified translation into English must be presented. If a minor does not travel accompanied by both parents with custody, it must also be proven that the parent who is not present either agrees with the trip (affidavit, copy of passport and contact details of the parent who is not present) or that the declaration of consent is not required (court order on sole custody or death certificate).
Persons travelling with minors who are not their own children must provide a copy of the child’s full birth certificate, affidavit, passport copies and contact details of both parents or legal guardian of the child. Minors travelling alone must also provide a letter of confirmation, contact details and a copy of the passport of the person to whom the minor is to travel in South Africa when entering the country.
It is strongly recommended that English declarations, documents or translations be submitted. Only the Department of Home Affairs (www.dha.gov.za) or the South African missions abroad can provide binding answers to questions in this connection. Please note that, in practice, many airlines (e.g. SAA) already check the documents for entry with minors at check-in and refuse to check in if the documents are missing or incomplete.