Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Tanzania’s President Advocates for Crypto Adoption and Exploration
On June 14, 2021, President Samia Suluhu urged financial chiefs and the country to brace themselves for crypto adoption. Speaking in Mwanza Tanzania, she pointed out that the country currently in an era of blockchains and digital assets.
The president further advised central banks to consider making preparations and developments that would support cryptocurrencies as the future of finance. These bullish remarks come months after she became the new president of Tanzania. While the crypto adoption pace may be slower in Africa, the area widely participates in Bitcoin peer-to-peer trading for a long time now.
Nigeria leads the list with a trading volume of more than $99.1 million between January and March 2021. However, despite being a vast Bitcoin market, the economy faces opposition from the Central Bank of Nigeria, which prevents users from engaging in any Bitcoin transaction.
It is closely followed by Kenya and Ghana, with trading volumes of $38.4 million and $27.4 million. Tanzania ranks as the seventh African country with weekly crypto trades amounting to $90,000, a figure that will increase eventually after the president’s announcement.
El Salvador Passes the Bitcoin Bill into Law
Before President Samia’s speech, El Salvador passed the Bitcoin bill into law on June 9, 2021. The new law formally introduced by Salvador’s president, Nayib Bukele, seeks to make BTC a legal tender.
After a supermajority vote in the Legislative Assembly, the president explained that the law would start effective immediately, allowing for a 90-day preparation to deploy the appropriate infrastructure.
Besides regulating BTC as a legal tender, the law intends to make Bitcoin a digital asset with liberating power capable of settling any transaction. Additional proposals on the new law include a zero capital gains tax on the cryptocurrency and a directive instructing economic merchants and agents to accept BTC as a payment medium.
What’s more, the Salvador government will offer the necessary training to citizens with little or no knowledge about BTC trading. The government also plans to bring resources and tools that will allow for converting BTC to U.S dollars.
The Benefits of Crypto Adoption
Despite being volatile digital assets in the market, countries can expect certain benefits from employing cryptocurrencies in their financial system. Digital currencies attract a relatively lower transaction charge, whether it is a local or cross-border transaction.
Issues related to identity theft will be effectively dealt with as blockchain technology removes intermediaries’ need or indicates any personal information.
Furthermore, crypto transactions are mostly quicker than the ordinary traditional financial system. More importantly, blockchains guarantee users of a transparent ecosystem that keeps a detailed record of every transaction.