African Nations Resisting Bitcoin Only Delay The Inevitable

There are two forward-looking countries on Earth when it comes to Bitcoin: El Salvador and the Central African Republic. 

These two very different countries on different sides of the globe have both come to the same conclusion: 

Bitcoin is the best money ever invented and embracing it early will be beneficial both for the people of the adopting nation and to the benefit and preservation of the concept of the nation-state itself.

There are other countries on the other hand, that are not led by gifted and insightful people. 

Uganda may be one such example, the central bank of which has just made this very ill-advised announcement, demonstrating a complete lack of understanding of all the matters to do with money and the great changes that are coming to how it is accounted for.

Their first error is to believe there is such a thing as a “crypto asset.” This term does not describe a real thing and their insertion of this phrase into their announcement shows that their thinking is not original at all, but gleaned from what they’ve read on the internet or what they've been told to say by the Bank of International Settlement or the International Monetary Fund.

Compare and contrast with the statements, plans and laws passed by El Salvador, demonstrating a complete understanding of Bitcoin and what it means to the future of that country. 

There is a clear divide here; on the one hand, profound ignorance and, on the other, deep insight, responsible stewardship, future-oriented thinking and ethics.

Future-oriented governments will be desperate to fully embrace Bitcoin and its dynamics, knowing that the probability that it will become the world’s reserve currency is one. (That means an absolute certainty, math-challenged readers.)

Bitcoin was designed to protect everyone on Earth from stupid people, but before Bitcoin can protect you from stupid people, it needs to be adopted by those same stupid people that are the threat to you. This is the conundrum. 

How can you get stupid people to buy and hold and use bitcoin? And what happens when they’re running the government?

The answer for people living in ethically-run countries is that people like President Nayib Bukele and President Faustin-Archange Touadéra must take the reins of power and use them responsibly to free their countries from the yoke of penury-entrenching Western fiat currencies.

The Central African Republic is symbolically placed on the continent to become the center of African bitcoin-based ecommerce, being roughly equidistant from all points on the continent. 

That country could be transformed from being one of the poorest to one of the richest in very short order, should it harness the transformation made possible by adopting Bitcoin and then become a continental hub for Bitcoin. 

This is no more strange than El Salvador becoming a focus for Bitcoin, for those of you with a goldfish memory who believe this is unimaginable.

Doing business on the continent of Africa is very difficult. It is difficult to get payments in and very difficult to get payments out.

For example, there is a black market exchange rate, and the government-sanctioned exchange rate in Nigeria, meaning that there are two economies running in parallel, on top of the difficulty of moving money out. 

Bitcoin fixes all of this because anyone can send and receive bitcoin in any amount at any time, without permission, and its price is determined by the market, not the State.

Saying “without permission” or “permissionless” as Bitcoiners do, is a phrase loaded with so much benefit that it is hard to describe to Westerners who have no idea of what it is like to do business on the continent of Africa. 

They take for granted that doing business and sending and receiving fiat money is a matter of pressing a button.

Moving money is fraught with difficulties and multiple ways of making a loss on a transfer. These piled-up losses can make it impossible to earn a profit, and if you do, impossible to spend or recycle it where you need to spend or recycle it. 

Bitcoin makes all of this go away, as well as adding extraordinary speed to all transactions that are without precedent for Nigerians and many people living on the African continent.

Given all of the advantages of Bitcoin, an intelligent person would ask, “Why then hasn’t Nigeria officially embraced bitcoin as a means of payment?” 

This is the correct question, and there are many answers to this, some cultural, that are preventing the Nigerian government from embracing reality and acting boldly like a leader nation as El Salvador and the Central African Republic has.

Trying to do any sort of Bitcoin business in Nigeria very often involves the invocation of the Central Bank of Nigeria (CBN), which has a stranglehold on all businesses and bank accounts in Nigeria.

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