Business Day Spotlight
PODCAST | Why is Africa the most promising region for cryptocurrency?
Host Mudiwa Gavaza is joined by Marius Reitz, GM for Africa at crytocurrency exchange Luno
In this edition of Business Day Spotlight, we’re examining the state of the cryptocurrency landscape in SA and the rest of Africa. Has it been affected by Covid-19?
Host Mudiwa Gavaza is joined by Marius Reitz, GM for Africa at Luno, a crytocurrency exchange.
The discussion starts with Reitz talking about the findings of their latest research.
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According to a new report by Luno and Arcane Research, the economic landscape across Africa bodes well for cryptocurrency adoption on the continent. Rapid adoption of cryptocurrencies is likely in Africa in the context of high inflation rates, volatile currencies and underdeveloped banking infrastructure, says the report.
Given the current global crisis brought on by the Covid-19 pandemic, Reitz says crypto trading has definitely been affected. Like other markets, cryptocurrencies took a hit in March in line with global negative sentiment at the time. However, since then the market has recovered with the price of Bitcoin currently on the rise.
At the time of publishing, one bitcoin cost R175,623.
The Luno head highlights that there’s been greater interest from institutional investors looking to hedge their risks against other asset classes that may not be doing well due to the crisis. This growing interest from established or traditional market players is important for increasing the credibility of Bitcoin and other crytocurrencies, Reitz says.
The discussion ends with Reitz talking about a a new documentary called “Banking on Africa: The Bitcoin Revolution”, backed by Luno. The documentary follows the journey of some of Africa’s Bitcoin pioneers as they “seek to leverage cryptocurrency to leapfrog world economic powers”. It will be available for streaming on Amazon Prime from May 22, as well as other local platforms, says Reitz.
Reitz also takes time to explain the recent Bitcoin halving event, its importance and significance, and gives details aboutof Luno’s current trading volumes.
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