Kenyans are trying to make money with Bitcoin and other crypto currencies. Some have been successful, while others have had limited success. Regardless of how the crypto market has developed in Kenya, it is exciting to see Kenyans attempting to capitalize on its potential. Here’s what you need to know.
Bitcoin
Bitcoin has become a popular way to transfer money from one place to another. However, it is difficult to find shops and landlords who will accept it. Even if you find one, you will need to convert it to traditional currency first through a broker. These brokers are based on word of mouth and are reluctant to risk their reputations by offering substandard services. Despite this, Bitcoin is proving to be an increasingly popular means of value exchange in Kenya.
The country has one of the largest Bitcoin exchanges in Africa and has become one of the world’s top countries for peer-to-peer cryptocurrency trading. With a robust regulatory framework, the Kenyan bitcoin exchanges are safe and reliable. Besides Bitcoin, other cryptocurrencies, such as Ethereum, are gaining in popularity. Ethereum is an open-source decentralized blockchain that enables smart contracts and has the highest market capitalization, second only to Bitcoin.
Sarafu
Sarafu is a community currency in Kenya that is similar to the popular M-Pesa. It is used for making local transactions and can be easily exchanged for goods and services. Anyone with a mobile phone line can purchase Sarafu and use it as digital cash. Sarafu is a new form of currency that allows people to transfer credits without having to hold Kenyan Shillings.
Sarafu is a blockchain-based network that uses USSD technology to make transactions. The process is similar to that of Mpesa: new users declare what they want to trade and are awarded sarafus based on their initial trading. To complete a transaction, the creator sends an SMS to the counterpart, who sends a payment using the USSD. Because transactions are completed on a peer-to-peer basis, no internet access is required and transactions can be completed almost anywhere.
Akoin
The Rise of Akoin in Kenya is a venture to create a digital currency with African roots. The project will be led by Akon, who is from Senegal and is a multi-platinum selling artist. He will be using his own cryptocurrency, Akoin, to launch businesses across the continent. While he will initially begin by launching in Senegal, he plans to expand to other African countries. For example, in Kenya, the Mwale Medical and Technology City is expected to be one of the first cities to use Akon’s cryptocurrency within a few months.
The cryptocurrency Akoin is set to launch in Kenya in September. It will be the main currency for the $2 billion Mwale Medical and Technology City, which is planned in Western Kenya. By 2022, the number of transactions associated with the currency are expected to exceed a billion dollars.
Mobile money
Mobile money and Bitcoin have been on the rise in Africa, and Kenya is no exception. According to the Central Bank of Kenya, mobile money transactions in Kenya topped $38.5 billion last year, an increase of 10 percent from 2017. Mobile money has revolutionized the Kenyan financial sector, with 83 percent of the population now having access to financial services.
Mobile money in Africa has helped people access internet, social networks, and entertainment. It has also boosted the growth of consumer electronic payments in Africa. In fact, Africa now accounts for 43% of the world’s mobile money accounts.
Regulations
As the Kenyan economy struggles to cope with a growing financial crisis, the Central Bank of Kenya is considering the use of bitcoin as its official reserve currency. This decision comes after a number of factors including a lack of foreign currency reserves and an increase in the velocity of money. Kenya has also begun discussions with international central banks about the use of digital currencies. The government hopes to develop a formula that will enable Kenya to tap into the global digital economy.
Although the country does not have specific cryptocurrency laws, it is enforcing regulations that help cryptocurrency companies grow in the country. For example, cryptocurrency companies need to be licensed by the CBK to practice banking activities within the country. If they aren’t licensed, Kenyan authorities have the authority to suspend their operations.
Security
If you are interested in using Bitcoin as your form of payment in Kenya, the first thing you should do is understand the security measures involved in using the virtual currency. Bitcoin is not considered legal tender in Kenya, but it is still safe to use as long as you avoid using any illegal exchanges. You should also choose a trusted exchange when you buy Bitcoin in Kenya. A secure exchange, such as Yellow Card, has a team of security experts that works around the clock to ensure the safety of your funds. Moreover, the platform is mobile, so transactions are fast and easy. However, keep in mind that delays in transactions can result in significant losses if you are not careful.
While the country’s central bank has not yet regulated cryptocurrency, there are positive signs. The Blockchain Association of Kenya is actively educating its citizens about the benefits of using Bitcoin in Kenya. This non-profit body has helped Kenyans buy goods in China and pay for school in Nigeria. Moreover, young African freelancers have been able to make a living online using Bitcoin.
Regulations for cryptocurrencies
The debate over the future of cryptocurrencies in Kenya is brewing. The country’s central bank has been mulling over the possibility of using cryptocurrencies in official transactions. This comes as more than 60 central banks around the world have entered the digital currency race. In an attempt to limit the volatility and soaring prices of cryptocurrencies, the UN has called on developing countries to create regulatory frameworks to govern their cryptocurrency sectors.
One of the most significant regulatory frameworks for cryptocurrencies in Kenya is the Money Remittance Act, which regulates banking activities. The act requires businesses to acquire a license from the central bank before they can engage in such activities. If a company is operating without a license, the central bank can suspend it. The idea behind this regulation was to prevent unauthorized financial companies from operating in the country.
