Bitcoins have major potential in Africa, changing banking industry

There is huge potential for bitcoins to shake up the financial industry in Africa, but plenty of problems lie ahead.

| Feb 22, 2015 at 11:15 am CST

The bitcoin cryptocurrency is struggling in the United States and other developed nations, but could have a major impact in sub-Saharan Africa. Around 75 percent of the population don't have a traditional bank account, and while more users rely on mobile phones to make transactions, it can be a slow and expensive process.

Bitcoins have major potential in Africa, changing banking industry | TweakTown.com

There were up to $1.8 billion in remittance fees, with a traditional money transfer charging a 12 percent transfer fee. Embracing bitcoins would help speed up the process, so money arrives to the recipient faster, while also being much cheaper.

"Bitcoin can greatly alter the remittances industry and beyond," said Michael Kimani, head of the African Digital Currency Association, in a statement to CNN. "From seven days [for a transaction to clear] using banks and PayPal, down to 20 minutes speaks volumes."

Kimani has met with multiple bitcoin supporters and companies, in an effort to be a pioneer in a payment industry that could do with a drastic modernization.

Last updated: Jun 16, 2020 at 04:29 pm CDT

NEWS SOURCES:cnn.com, btcfeed.net

ABOUT THE AUTHOR -

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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