Internet growth has lead to introduction of transaction of traditional currencies and exchange systems in the borderless electronic world.
Cryptocurrencies are virtual money that can be used to pay for things in the real world such as, hotel rooms, food, house, etc. It can facilitate and ensure that you do unlimited number of transaction unlike the M-pesa. It can reduce the cost of transactions and enable people without bank accounts to quickly make and receive payments since its a more secure, faster and affordable option for transferring funds.
Digital currency has the capability of instant payments anywhere in the world and transaction cannot be reversed or counterfeited hence reducing possibilities of theft in M-pesa through reversal options or identity theft in credit card. It’s supply cannot be manipulated by the government, bank, organization or individual.
There is no transaction fee for the currency exchange since the Bitcoin miner is compensated by the network with newly issued currency.
Kenya’s M-pesa system which is a mobile phone based money transfer and micro-financing service recently announced a bitcoin device. Some businesses in Kenya have implemented payments via digital currencies due to theft cases.
However banks in Kenya have not been given the mandate to open accounts for people dealing with virtual currency. The Blockchain Association of Kenya (BAK) is actively working to educate the country on the benefits of using cryptocurrencies and blockchain.
Digital currency is now used in Kenya to pay merchants in China for goods. Enable Nigerians to pay their children’s school fee’s in Kenya. Enable young African freelancers to be easily paid for their work online.
Digital currency will improve the digital environment and economic development of African society.