African banks have a known hostility towards Bitcoin and blockchain technologies. Following the regulations set out by many European and American states, African banks have remained cautious about recognising the validity of Bitcoin as a currency. While some countries have shown interest in developing blockchain technology to work alongside current infrastructure the majority of African banks remain hostile toward Bitcoin and crypto developments. However as of recently South African and Japanese banks have become welcoming towards advances in this field of financial technology.
Japanese & South African banks
There has been a increasing number of Bitcoin users in Africa which has begged the question why it isn’t recognized officially on a legal level. Used extensively in Nigeria for remittances and with Nigeria being the biggest sub Saharan remittance consumer, Bitcoin use is on the rise. Currently Japan was in a tight spot on Bitcoin after the MtGox collapse in the past. This left a sour note for many crypto users who lost out. However under recent growth and reconstruction Bitcoin and blockchain technologies but Japan has recently passed a bill acknowledging crypto and blockchain technologies.
Kganyago said, “As a central bank, we are open to innovations despite the different opinions of regulators on matters such as cryptocurrencies. We are will to consider the merits and risks of blockchain technology and other distributed ledgers.”
As seen above the central bank of South Africa too aims to follow up with Bitcoin and blockchain recognition removing the current grey area surrounding its regulation.
To conclude the recent events have shown that African banks have expressed an interest in blockchain technology. This recognition of Bitcoin and blockchain as viable technologies of the future will hopefully allow the banks to fuel projects to enhance the infrastructure currently in place for crypto users. Exchanges such as NairaEX, Nigeria’s premium exchange, you too can try out Bitcoin as transactions are completed within a matter of hours!