You’ve heard so much about coins. You’ve seen news reports and countless social media posts about them.
You might have even interacted with these coins yourself—buying, selling, or mining them.
Perhaps you’ve even been lucky enough to receive one as a gift.
Your level of engagement with these assets is personal, indicating how crypto-friendly you are. Your friends or family might have different perspectives and experiences with Bitcoin.
Interestingly, Bitcoin’s impact extends beyond individuals. Entire countries have their own recognizable and valid experiences with Bitcoin. These can be termed Bitcoin-friendly countries.
In this Monierate article, we explore notable Bitcoin-friendly countries in Africa:
Nigeria
South Africa
Kenya
Zimbabwe
Mauritius
Read on to learn more about these countries and their relationship with Bitcoin.
Common Activities of Bitcoin-Friendly Countries
You may wonder what the signs of a crypto-friendly country are. What are some of the activities that make them Bitcoin-friendly? How long does a country have to show these positive attitudes towards Bitcoin?
We answer those questions below in this section.
Acceptance as Legal Tender:
This might be extreme but it’s surely worth noting. Individual countries can choose to take Bitcoin as legal tender. El Salvador was the first to do so. Interestingly, it still retains its stance up until today.
The Central African Republic took the same action once. However, it reversed its decision only a year later.
Taking Bitcoin as legal tender means two things. One; such country recognises Bitcoin. Two, it believes in either the current or future potential of Bitcoin.
They do so enough to accept it as a form of money or medium of exchange. What could be a bigger pointer to a nation’s crypto-friendliness? Probably nothing.
Installment of Bitcoin ATMs:
Bitcoin ATMs are real. Like regular ATMs, they are used for electronic transactions. However, transactions in this case involve Bitcoin and a local currency.
Users can deposit local currencies for Bitcoin. Similarly, they can trade Bitcoin for local currencies. This helps to improve adoption and access to the digital asset.
Countries that support or have Bitcoin ATMs are Bitcoin-friendly.
Purchase of Crypto as Part of National Asset:
Crypto-friendly countries also take it upon themselves to purchase Bitcoin. They make it a part of their national reserve. This introduces a new type of asset diversification.
Only a few countries have so far explored this idea.
Positive and Favorable Regulations:
A Bitcoin-friendly country would not push against Bitcoin. Instead, it will want to create favourable regulations. This could be both cautious and positive.
Favourable regulations come from an understanding of risks and potential. Countries that exhibit this are more likely to accept public opinions. In addition, they will continuously iterate over existing ideas and carefully weigh benefits and drawbacks.
The most popular example of this is low or zero taxes on mining or digital asset earnings.
Dilemma of Bitcoin-Friendly Countries in Africa
Before we proceed, we should mention one thing. Many African countries are in a fix. This involves government bans and disapproval towards Bitcoin. On the other hand, there is adoption and increased interest from citizens.
Also, many governments are engaged in crypto-friendly activities. This is despite an outright ban on transactions. As we see, this includes creating CBDCs and owning Bitcoin ATMs.
Bitcoin-Friendly Countries in Africa
Here’s a list of Bitcoin-friendly countries in Africa. Please note that there may be more countries. By implication, this list is not final.
1. Nigeria
Nigeria has put a strict ban on cryptocurrency transactions. The government directed commercial banks to block accounts involved in crypto activities. It is also at war with P2P trading platforms, accusing them of aiding currency manipulation.
Despite these, the country is probably the most Bitcoin-friendly in Africa.
Nigeria has a total of 2 Bitcoin ATMs. Furthermore, the central bank has set up and launched a CBDC. This asset, called the e-Naira, was released in 2021.
It uses the hyperledger fabric technology and falls under DLT. The e-Naira is available as a retail product. This means individuals can access the asset and buy it in small quantities.
Nigeria has also experimented with other types of digital assets. One such is cNGN. cNGN was intended to be a stablecoin pegged to the Naira and backed by physical cash.
Another interesting point is that Nigerians love Bitcoin. Bans and restrictions notwithstanding, people continue to buy and trade Bitcoin underground. The country stands as the biggest Bitcoin market on the continent.
2. South Africa
South Africa is prominently Bitcoin-friendly. First off, it has the highest number of Bitcoin ATMs in Africa. It hosts 21 of these machines. This is over 77% of the continent’s total.
In addition, digital assets are considered legal in the country. South Africa does not ban Bitcoin/crypto transactions or ownership. It shows significant support for it through licensing, favourable laws, and low taxes.
Here’s an example. The FSCA issued 59 licenses in March and 75 in April. This welcomes more and more crypto operators to the region.
The abundance of operators and good prompts from the government sparks interest and engagement. Evidently, South Africa’s crypto market is the second largest on the continent.
3. Kenya
Kenya is on the scene wherever Bitcoin in Africa is discussed. It leads as the biggest crypto market in East Africa. The country reportedly holds over $1.5 billion worth of Bitcoin.
What’s more interesting is that the CBK has not declared Bitcoin as illegal. It, however, published a statement advising the public to refrain from transacting cryptocurrencies.
On CBDCs, Kenya had once shown interest before quickly reverting its stand. The central bank now suggests that it is carefully making considerations.
There’s also a place for cryptocurrency companies. These entities may acquire licenses to operate within the country.
4. Zimbabwe
Southern African country Zimbabwe also earns itself a Bitcoin-friendly tag. It supports the asset and other digital coins. It does so in many different ways.
One is through the launch of its own CBDC.
Zimbabwe’s CDBC is called ZiG. The asset was launched in 2021 by the Reserve Bank of Zimbabwe. According to the bank’s governor, this important step will help tame the dollar depreciation.
There are more pointers to Zimbabwe’s Bitcoin-friendliness. The country is one of six nations on the continent with a Bitcoin ATM. It has just one of these ATMs but that surely counts.
The country has also lifted its ban on cryptocurrency transactions. This means that Bitcoin is no longer considered illegal. Nevertheless, no licenses have been issued by the government to trading platforms.
5. Mauritius
Mauritius stands out as a Bitcoin-friendly jurisdiction. In 2022, it reportedly ranked 131 of 157 countries adopting crypto in general. Before then, it was the first African country to issue a crypto license.
The East African country began a regulatory blueprint in 2018. This classified digital assets as a tool for expert investors. One year later, it released the Financial Services (Custodian Services (digital assets)) Rules.
This came with an amendment of the Financial Sevices (Consolidated Licensing and Fees) Rules 2008.
Mauritius also served the Virtual Asset and Initial Token Offering Services (VAITOS) Act in December 2021. The act came into effect in February 2022. It recognised virtual asset service providers (VASPs) and ITO issuers.
Conclusion
Africa is not a top contender for global Bitcoin ATMs, legal tenders, etc. However, the locals exhibit profound interest in it.
A new positive trend is also emerging. With this, more African nations are easing their regulations. This is in recognition of global acceptance of the asset. The continent’s adoption of Bitcoin is expected to soar thanks to the new course.
