Due to a lack of education, Africa has become a prime target for crypto fraudsters from all over the world.
Ponzi schemes offering rich returns to DeFi ventures promising above-market returns on staked tokens and yield farming are among the crypto frauds. This is weakening the confidence that is essential for widespread adoption.
There is no formal structure for bitcoin education in Africa.
Africans largely learn about Bitcoin and other cryptocurrencies through social media platforms such as Twitter, YouTube, Facebook, TikTok, and Instagram. They also learn from industry heavyweights like Binance, Paxful, Luno, and Coinbase.
But the bulk of African media businesses does not promote Bitcoin and cryptocurrencies.
According to Gemini’s 2022 Worldwide State of Crypto study, the major global barrier to crypto ownership is education.
The report indicates that 40% of African respondents had not acquired any cryptocurrency since they did not know how to buy and hold it. Another impediment to Bitcoin adoption was a lack of confidence and concern about Bitcoin price volatility.
In 2021, for example, the proprietors of Africrypt, a defunct crypto investment site, misappropriated approximately $3.6 billion in Bitcoin in South Africa. The regulatory body has no grounds to prosecute because cryptocurrencies are not recognized as financial assets in South Africa.
This is one of the numerous bitcoin frauds in Africa in the previous two years. It raises worries about the security of African cryptocurrency initiatives, raising the bar for widespread acceptance.
In order to halt the growth of crypto frauds in Africa, Binance and other players have started arranging educational initiatives to assist Africans to understand crypto, safeguarding their crypto, and preventing crypto scams.
The existence of strong restrictions restricting the usage of cryptocurrencies, as well as others barring banks from working with crypto businesses, is the major hurdle to Bitcoin adoption in many regions of Northern Africa.
In the 2021 research conducted by the Law Library of Congress, the usage of private cryptocurrency is illegal in Egypt, Tunisia, and Algeria.
To fully increase Bitcoin acceptance in Africa, leaders in the crypto movement must find a means to educate politicians and other officials about Bitcoin and its advantages. As a consequence, they will no longer be terrified of Bitcoin and will embrace its capabilities to enable value movement, storage, and protection.
The more these lawmakers understand and accept Bitcoin, the more likely it is that Bitcoin-friendly legislation and regulations will be enacted.
Furthermore, Bitcoin plebs in Africa must speed up blockchain education in order to assist people in understanding cryptocurrency and securing their currencies. This will help to reduce the growth and effect of bitcoin frauds while also rebuilding trust in blockchain initiatives.