Namibia has joined the league of African countries that have legalised using crypto payments option though it is not a recognised legal tender in the country. Although some people were not too pleased with it not being recognised as a legal tender, the move was applauded by many as a significant step by the government.
This stemmed from the initial opposition of the government to cryptocurrency in 2018 as a medium of payment for goods and services and the exchange of the Namibia Dollar.
With the new development, Kazembire Zemburuka, the Director of Strategic Communications and International Relations at the Bank of Namibia (BoN), said, “To ensure a progressive regulatory response to the exponential growth in Virtual assets (VAs), the Bank of Namibia has brought Virtual Assets and Virtual Assets Service Providers (VASPs) under its FinTech Innovations Regulatory Framework in a phased approach through its Innovation Hub.
In that regard, the Bank of Namibia will engage VASPs under its Regulatory Sandbox and consider the amendment of applicable laws and regulations diligently in consultation with other relevant authorities.” With the new decision, it can be said that the country is open to immense opportunities with the emergence of crypto transactions in the country.
From a survey conducted by Reuters, many business owners agree that adopting crypto as a payment method is very important to the success of a business. The inclusion of crypto will thus boost businesses that will translate into the country’s economy. With the prospect, here is what Namibia will benefit from legalising crypto payments.
Though the unemployment rate in Namibia reduced by 0.62% in 2022, it was still high at 21.06%. This ranks it as the eighth African country with the highest number of unemployed youth in 2022. Despite the slight difference, a large number of youths are still jobless in Namibia and Africa at large.
However, with the new development, there is a big possibility of unemployment to reduce in the country. This is because people can now start their businesses through crypto by working for companies within and outside Namibia. For example, you may lend or sell binance codes. Binance code is a prepaid cryptocurrency voucher that provide a quicker and less expensive means of transacting.
In August 2022, the yearly inflation rate in Namibia increased to 7.3% from 6.8% recorded in July. This makes it the highest rate recorded since February 2017. With the decentralised nature of crypto, investment and business can no longer be affected by economic instability and hyperinflation.
This was evident in 2015 when it helped stabilise the economy of Zimbabwe from hyperinflation that reduced the value of the Zimbabwean dollar to the lowest ebb. For instance, printed $100 trillion notes were worth just $40) each. This saw people turn to Bitcoin.
Diversified payment opportunities
The decentralised nature of crypto makes its adoption in Namibia a good move by the government. Apart from the traditional means of payment, different options are now available to boost the economy and foster business.
Now Namibians, through the different crypto features, can transfer money at a very low cost within and outside the country to any part of the world. Also, some cryptocurrencies enable you to send money back to Africa with little to no additional fees, in contrast to the conventional payment method with high prices.
One such platform with crypto features is BitPesa, a Nairobi-based remittance company. For international transactions, it takes Bitcoin as payment, saving you money by eliminating bank fees and the cost of currency conversion.
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