Kenyans vote for crypto!
For many crypto enthusiasts, it is no secret that the African population is highly involved in crypto and peer-to-peer trading. But if you wonder about the reason, you should probably be familiar with Argentina's Bitcoin use case.
As a result of the instability, Argentines became some of the earliest adopters of cryptocurrency in the world in order to protect their assets against inflation. Their financial crisis is the perfect example of how cryptocurrency is going to change the world at times of inflation. Nathaniel Popper's book "Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money" would serve as a great source of detailed information regarding cryptocurrency being a way to loosen the effect of the inflation rate and rescue your savings.
In this article, we will discuss why such countries embrace cryptocurrency and finally find out the connection between the results of Kenya’s recent presidential elections and cryptocurrency.
A restaurant that accepts Bitcoin in Kenya. Source of photo: BBC
Let's take a brief excursion into East Africa's economy. Annual food and non-alcoholic drink inflation went up to 13.8% from 12.4%. Annual inflation rose to 8.3% this July, which is the highest level since August 2017. Analytics predict food prices will increase in 2022 due to poor weather conditions in sowing areas of Eastern Africa and high fertilizer prices.
Many African markets face currency devaluation, forcing locals to refuse the national currency and find a better alternative. Not to mention high international transaction fees, the fear of losing your savings because of inflation, corruption, and user-unfriendly banks.
Source: Kenya National Bureau of Statistics
But Kenya's presidential election result gave their crypto community and locals a little hope for the safety of their assets and crypto adoption in general. In addition, considering Kenya’s elected President William Ruto's relatively young age and his proactive campaigns, this could hint at his positive attitude towards cryptocurrencies and deep implementation of such technologies in Kenya.
William Ruto during his campaign. “There is no time for looking back, we are looking into the future,” he said. Source: AFP/Getty Images Marco Longari
Such adoptions are going to enhance international transfers and the domestic payment infrastructure. Regarding recent research, almost 9% (5 million) of Kenya’s population uses crypto as a payment method and store of value. Also, it is worth mentioning that Kenya was at the top for cryptocurrency adoption globally according to the United Nations Conference on Trade and Development (UNCTAD).
We are hoping that William Ruto and his team will be crypto-friendly and allow for regulation of local and international exchanges to benefit the Kenyan stakeholders.says Kenyan Research & Markets Analyst Rufas Kamau.
We may soon see the new leader of the Ministry of Finance and the Central Bank of Kenya, which will provide us with a better understanding of whether or not crypto adoption occurs. Stay tuned!
