The recent criticism from the US President Donald Trump on Twitter and US Senate about cryptocurrencies mirror a lot of the current misconceptions, particularly those relating to illegal activity and volatility, Marius Reitz, General Manager for Africa at Luno has declared.
The president’s position, in particular, has put cryptocurrencies back in the spotlight, raising questions about whether or not they are fit for purpose.
According to Reitz, the nature of the blockchain technology that underpins cryptocurrencies means every transaction is recorded, immutable and traceable to a human being, making it one of the worst tools for criminals looking to keep their identity anonymous. On the issue of volatility, he explained that there is a long list of cryptocurrencies, including Facebook’s Libra, that is pegged to the US dollar and other tangible assets that make it easier to regulate their value.
“Libra’s connection with established financial institutions also highlights its validity as a means of exchange,” he quipped.
While analyzing consumer confidence in a different kind of money, the founder of Luno explained that “Our research shows that there is low consumer confidence in the current financial system, which was created 75 years ago and hasn’t really kept pace with how the world has changed around it. From security to transparency, consumers, especially Africans, are calling for a change in how things are done.”
With Africa standing to gain so much from crypto adoption, it’s critical there’s adequate education around the topic so that our continent can experience its full benefits, he further explained.