- Jose de Lima Massano, the governor of the National Bank of Angola(BNA), saw the vast potential of Africa’s crypto industry.
- Around 2018, during the Golden Age of Bitcoin, Angola underwent an intense economic failure.
- Angola has a steady crypto transaction rate, and experts estimated at least $17 million in transaction volume in 2023.
Africa’s crypto Industry contains only a few countries with a strong stance on digital currency adoption. Only a select few, such as Nigeria and South Africa, have painted a positive limelight on its adoption. At the same time, a few African countries, such as Congo, Ethiopia and a few more, have explicitly hindered the growth of their crypto traders. Thus a majority of the market is stuck in a somewhat confused state. This indicates significant improvement from rejecting the concept and paves the way for the possibility of future web3 applications in Africa. This article will highlight the crypto state of Angola and how its government is steadily warming up to the notion of cryptocurrency.
The step for change in Angola
The central African region has consistently had an inclining trajectory with web3 applications. Inspired by its sister region, several countries, such as the Central African Republic, set the path for the continent’s digital transformations. Its initial partnership with Cardano set in motion various milestones experienced today. Fortunately, it also inspired its sister country, Angola, to take the next step for web3 applications.
Angola is among the few countries to allow the use of digital currency. Its primary concept within the financial industry set in inspired its crypto traders and government to give digital currency adoption a chance. Neither the National Bank of Angola nor its government issued any notice regarding the legalities and use of crypto.
Also, Read Crypto regulation framework in Africa: Why we need it and who benefits.
This generally implied that the governments still had mixed opinions on its developments. Thus rather than completely reject a new concept without perceiving its value or accepting an unknown variable that could topple its economy, they chose to see where their crypto traders would take this newfound technology. As a result, its fixed point in Africa’s crypto industry considerably grew over the past decade.Unfortunately, its declining economic growth led the country to acknowledge the existence of Africa’s digital currency adoption rate. With Bitcoin gaining value, it was only a matter of time before Angolian crypto traders would begin to change their economic standpoint.
Around 2018, during the Golden Age of Bitcoin, Angola underwent an intense economic failure. Efforts to address macroeconomic imbalance while conserving the patronage system proved difficult. International organizations such as the IMF intervened during the early 2000s, but their efforts were short-lasting.
It significantly boosted their economic standpoint, but the oil prices kept increasing. This proved a significant problem for Angola while its digital currency adoption steadily grew. More users turned to alternative ways of escaping the never-ending financial decline the Central African country faced.
As a result, the government set in motion a collaboration with the Bank of Namibia to establish legal frameworks. Doing so would eventually enable the country to benefit from this web3 application.
Angola set to develop new crypto regulations.
Jose de Lima Massano, the governor of the National Bank of Angola(BNA), saw the vast potential of Africa’s crypto industry. To harnesses the potential and protect its country’s crypto trades, Jose set in motion a plan to develop a new crypto law within the country. He partnered with the Bank of Namibia and the Council of Supervisors of the Financial System.
During a conference by Ernest Young, it became clear that the International Financial Action Group has published recommendations to find new ways of mitigating the risk involved in the digital currency adoption rate. He stated, “It is o the basis of these recommendations that several central banks adopt new regulatory bodies to not only benefit from crypto but safeguard its usage.”
He highlighted that with the growing number of crypto traders, the potential of cyber attacks only increases.
The establishment of crypto regulation came with the collaboration of the Bank of Namibia. Kazembire Zemburuka, the BoN Director: Strategic Communications and International Relations, said this partnership would significantly aid both countries. He stated that the two central banks had agreed to enhance trade facilitation by using digital currency. This presented a new efficient form of payment that is fast and more cost-effective.
This further Angola to establish more regulation on the use of cryptocurrency. With Africa’s crypto industry growing alarmingly, more organizations would seek to implement web3 applications within their financial systems. According to Statista, Angola has a steady crypto transaction rate, and experts estimated at least $17 million in transaction volume in 2023.
Also, Read Africa’s crypto market: The journey through 2022.
In addition, revenue from its digital currency adoption will show an annual growth rate of 222.07%, totalling $39 million. Since Angola’s current challenge is stabilizing its fiat currency, a turn to Africa’s crypto industry is the most logical move. Despite the recent Crypto crash, the price of Bitcoin and any other web3 application is still significantly higher than its cal currency.
Jose stated that the recent regulation update in May 2021 would reflect a new supervision model. It includes the regular assessment and supervision of financial institutions using digital currency.
Angola’s government initially created a legal framework to protect crypto traders from ultimately rendering its fiat currency useless.
Despite this, its government is still open to Africa’s crypto industry. Further, its crypto market is still developing compared to crypto hubs such as CAR, Nigeria and Kenya. Angola still has ways to go, but creating a crypto regulation might be the first step toward change for the central African country, and embracing web3 applications might be its next step.