Cryptocurrencies are a lucrative investment model. Despite the risk involved people have been investing in cryptos like never before. The market capitalization of cryptocurrencies touched $3 trillion in 2021. Along with Bitcoin, various other cryptos gained attention. This includes other blockchain technology-based tokens including Ethereum, Polkadot, and Shiba. Additionally, there is an increase in the number of agencies accepting crypto payments. Many institutions including information technology and financial agencies accept cryptos. Moreover, many gaming platforms including Microsoft accept crypto payments. Other than the financial industry, there is an increase in crypto usage in real estate and automobiles.
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Global acceptance of cryptocurrencies
Despite cryptos’ growth, many countries were not ready to accept crypto tokens. Since these tokens work on decentralized finance, the tokens pose a serious threat to society. But ignoring the societal pressure, the investments in cryptos continued to grow. Investors went ahead and continued to increase their investments.
Considering the growing interest, many countries came forward in implementing regulations around cryptos. The recent one to join the list is the US signing the executive order to regulate cryptos. Considering the growing interest, many countries are now looking to regulate cryptos. If you want to know more about crypto payment, then you can visit Quantum AI.
Adoption of crypto in Africa
Cryptocurrencies were able to establish their presence in the country. Given the limitations of traditional banking systems, cryptos were soon able to replace them. Africa became one of the top countries to adopt cryptos. Yet, while the investors grew the country did not great volume of crypto transactions. The country only made less than $2 billion in transactions during the year.
As per recent estimates, the country has more than 6 million retail crypto investors. The government has also taken a standard approach to regulate this payment model.
The Central African Republic and El Salvador became the pioneer in mass crypto adoption. Both countries identify Bitcoin as a legal tender. However, widespread adoption is still a question considering the inherent risks in cryptos.
As a first step, South Africa has come forward with a set of new regulations. Cryptos have been recognized as a financial model. As per the latest amendment in the FSCA, the country has gone ahead and provided financial status. It also means that any financial institution in Africa can now distribute crypto tokens. The country has also taken steps to ensure that investor interests are protected. Various efforts through this amendment ensure the growth of cryptos while protecting investors.
The regulatory changes also aim to provide better institutional adoption of crypto tokens.
South Africa launches crypto payment gateway
Considering the legal status, the South African banks are taking their next steps. As we speak, Neo bank has offered a crypto payment gateway. Through this model, merchants can liquidate their cryptos to traditional currencies.
Storing crypto tokens with bank
This comes as the first offer from Neo bank. Using this payment gateway merchants and business institutions can accept crypto payments. Individual users and investors gain an opportunity to store their tokens with the bank. Today, business institutions have spread their business outside Africa as well. Now, it becomes difficult to transfer funds from institutions outside the country. This is when crypto transactions can help. Crypto payment gateway makes it easier to complete such user transactions. Also, there are reduced transaction charges through this working model.
Other than regular transactions, users can also convert their holdings. Yes, the payment gateway allows users to convert their existing crypto tokens to rand. Other than this, you can also choose two other currency conversions – the US dollar and the euro.
Next steps in crypto adoption
Featuring right-after payment gateway, South Africa is also looking at real-time transactions. Now that cryptos have received legal status, we will have to wait to understand the next steps in the industry.
While payment gateways continue to work, let us look at a few advantages and disadvantages.
Through a payment gateway, there is the elimination of people you transact with. It allows you to have a customer-centric approach enabling you to raise issues if any. Payment gateways also make it easier to accept payments globally.
The disadvantage is breaking the stereotype of cryptos. The purpose of cryptos was aimed to break third-party involvement. With a payment gateway in place, this concept becomes irrelevant.
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