Cryptocurrencies like Bitcoin seem to have a strong reach in Uganda. While earlier Africans were facing the warnings of instability, hacking, money laundering with Bitcoin, its trading is widely recognized in Uganda’s market. There are numerous education and awareness programs to draw people towards Bitcoin. If we take a bigger picture in mind, Bitcoin is definitely on the path to becoming a useful alternative to fiat currency.
Rise of Bitcoin in Uganda and Africa
Bitcoin is getting huge recognition among young investors and emerging as a direct alternative to gold, which used to be a safe haven. As per a survey by Chainalysis, Africa ranked third among the “Top 20 Global Crypto Adoption Index”. We can witness the rise of 1200% in Bitcoin and Cryptocurrency adoption, and that’s a huge figure predicting more surges for Ugandans.
Bitcoin has the capability to bridge the economic gap, personal and entrepreneurial needs, wealth preservation & growth, eCommerce, payments, etc. This makes it a perfect option to bring financial services to even low socioeconomic status people. It was the vision of Bitcoin creator Satoshi Nakamoto to make it a leading currency for digital transactions and payments. The same seems to be working for Uganda as well. Coming into the mainstream regular transactions, bitcoin can definitely solve a lot of issues with flat money. The centralized nature of Bitcoin ensures speedy transactions and that has the potential to revolutionize regular payments.
Bitcoin as a reliable payment option
Cryptocurrency, being a peer-to-peer system allows Ugandans to send and receive payments across the globe. There is no need to get the external sources’ approval for regulating Bitcoin exchange. A lot of citizens across Africa have already adopted cryptocurrency payments and exchange.
The best thing with Bitcoin as a currency and payment option is that it eliminates the middleman commissions and extra fees. But the same is not possible with other fiat currencies. With more transparency between the two parties and ease of transactions, the tracking of audit trails, payments, and parties becomes way seamless.
Bitcoin is immutable and hence the transactions are irreversible. This extends the safety of the payments as well as no third-party (Government or Financial Institution) can alter the same. Ugandans are making use of their bitcoins as an alternative to hard cash. However, there are certain chances of hacking and losing wealth by compromising a private key. But that doesn’t seem to be a problem as the wide adoption and usage are largely unaffected.
Key Challenges in Uganda for Bitcoin Adoption
Earlier, Bitcoin has been banned in Africa and Uganda because of wallet hacks, scammers risks, limited control, and other reasons. However, later things were clarified, and the Government was compelled to remove the red tape. The bank’s circular cautioned not to deal in Bitcoin as it was not identified as a legal tender.
While these legislations were passed with all good intentions, the scammers and criminals took the same to their advantage. Later this cryptocurrency was allowed and even created a huge surge in the Ugandans. Overall, Bitcoin has already established its roots in Uganda and other regions of Africa.
It is an undeniable fact that Bitcoin is going to rise exponentially in Uganda and the trends are nowhere to become a fad. The advanced cryptocurrency is also revolutionizing the payments landscape in Africa. It is advised to people of Uganda to adopt early and gain huge advantages.