Bitcoin vs dollar in Africa

Recently, the vice-president of Groupe Nduom, a leading financial holding company in Africa, Papa-Vassa made a statement: “Thirteen African countries must buy bitcoin and immediately.” His proposal comes as many African countries rely entirely on the dollar as their reserve currency.

Over the past year, Bitcoin has experienced unprecedented growth. In 2017 alone, the price of one coin rose from ~$950 per Bitcoin to $13,685, meaning that the value of Bitcoin increased by 1340% over the previous year. The US dollar index fell almost 10% in 2017. This is the biggest decline since 2003, when the dollar fell almost 15%. The depreciation of the US dollar is of particular concern to emerging markets such as Africa, whose reserves are dominated by this currency. It is known that African countries such as Sudan, Kenya and South Africa have reported a sharp increase in the use of bitcoin over the past year.

The dominance of the US dollar in global foreign exchange reserves is undeniable. African countries reported reserves of US$111 billion in 2016. South Africa alone reported foreign exchange reserves of 50.3 billion in November 2017. Of these, the lion's share is in US dollars. This means that if the African continent were to seriously consider purchasing bitcoin, it would bring at least another $30 billion into the cryptocurrency market. 

That is, the active use of cryptocurrency in Africa today is its use by investors as an asset for storing funds.

According to https://bitrazzi.com/