Bitcoin, the alternative digital currency that dates back to 2008, has caught on around the world, from Argentina to sub-Saharan Africa. Completely free of any privately-held financial institution or government central bank, users with access to the bitcoin exchange the currency via an encrypted peer-to-peer software system over the web or by mobile telephony. The system has its hitches. First, the currency’s exchange rate was volatile for much of the year. Bitcoin’s instability, therefore, has attracted its fair share of critics; others have slammed the system as a means to fund illegal drugs and gambling (true of any currency, of course). Nevertheless, more businesses, merchants and individuals embrace the currency. Some pubs in Britain accept bitcoins; Argentines weary of inflation and the country’s dodgy banking system are warming up to the currency, too. In Africa, one in three Kenyans and one in nine Tanzanians have a “bitcoin wallet.”
Now Safaricom’s M-Pesa, operators of a mobile phone payment platform in Kenya that has transformed the country’s financial system, announced it will integrate a bitcoin service within its system. So what does this mean for the “unbanked” population in Africa, South Asia and around the world?Triple Pundit
Alternative Currency Bitcoin Poised to Grow in Africa and Beyond
Leon Kaye
Why not just implement an electronic payment system with a stable grown-up currency?
ReplyDeleteIn all seriousness, I think a lot of the initial Bitcoin buzz was based on a confused sense that Bitcoin was somehow unique in being electronic.
Well Dan you hear the phrase "printing money" all the time here in the west... that's how many describe the Fed's QE, monetarists use the phrase all the time... Euro bosses still seem terrified of "money printing"/Weimar...
ReplyDeleteMy Libertarian acquaintances often talk to me about bitcoin... they like how it is not related to the government and "private", etc...
This could be in response to failed/corrupt leadership in govt over there not running a legitimate state currency/banking system or perhaps they have many libertarians in Africa too...
I think bitcoin probably will help that region at least short term... rsp
Who cares? Bitcoin is worse than gold as money. It is a money hoarder's dream come true except it has not been privileged by government.
ReplyDeleteCommon stock, otoh, "shares" wealth and power and has no limit on the amount of new shares that can be created.
From the article it seem that Bitcoin as a complementary currency is serving mostly as functioning payments system, whereas the govt systems are not. This happened in the US too with PayPal, which facilitated international commerce when the big banks (smaller banks don't handle it) were extracting huge rents for the service. Markets will find ways around roadblocks and toll booths.
ReplyDeleteA good thing about alternatives like Bitcoin is that force the Establishment to compete, thereby reducing rents.