The Blockchain Africa Conference, which is the largest in the continent was held in Johannesburg earlier this month. The event heavily focused on the technology behind cryptocurrencies like bitcoin and ethereum and slightly touched on the cryptocurrency trading.
More countries in Africa have adopted the Decentralized Ledger Technology(DLT) that will help solve development issues in the continent. Companies have begun using DLT to make themselves visible in the global market. While Africa is adopting Blockchain technology, cryptocurrencies have been put aside for a bit.
According to Tanya Knowles, the event’s MC plus Binance South Africa’s country manager, the Blockchain Africa conference held in March 2020 at Johannesburg, has focused majorly on the technology that will underpin cryptocurrencies like Bitcoins in the trading platforms. This conference’s main focus was to place Africa as the main content that powered blockchain development to tackle the challenges faced in trade instead of digital currency trading.
Even though the government has, however, not focused mainly on digital currencies, countries like Kenya and Nigeria will implement it. These two countries have recently announced that they would be pursuing regulations to understand the benefits of blockchain technology.
The Importance of Blockchain Africa
Thavash Govinder, a data analyst from Microsoft South Africa, says that platforms that adopted blockchain will experience high speeds in trade by removing irregularities in multiple processes.
Blockchain can help obtain public data and deal with corruption, a move that is especially beneficial to the government. However, no company in Africa has requested for blockchain to help deal with corruption and assist in procurement.
Blockchain technology can aid in obtaining Identity Cards and Birth certificates. Due to institutional incompetence, institutions lack information about people; hence Perhaps, with blockchain, this issue can finally be addressed. According to Victor Mapunda, CEO of FlexFinTx, the idea of shifting to digital currencies seems like a perfect move, especially after knowing that almost 400 million Africans have no proper identification paperwork.
Challenges hindering Blockchain adoption
Getting services that can help the growth of companies by examining factors that will influence the adoption of technology is hard.
One of the directors at Block Patrol says that if experts can measure the extent to which adopters can experiment with innovation before launching, then the future of blockchain in the African market is on the rise.
PwC claims that challenges like uncertainty during regulatory, Merging networks, Lack of trust among customers, Audit- compliance issues, and Intellectual property issues might be faced once blockchain technology is adopted.
As Heath Muchena, Founder of Proudly Associated, says, Implementing new technology disrupts and invites resistance. Educating users will not help achieve user adoption but gain commitments.