Could Mozambique Join Crypto Sphere in Southern Africa?

A skyline view of Maputo, Mozambique's capital city.

Mozambique lies on the east coast of Southern Africa, a region that has become welcoming hosts of cryptocurrency expansion and exchanges.

Mozambique emerged out of decades of civil war, and has since seen a relatively struggling economy, high inflation, and a rise in poverty. What could cryptocurrency do for this struggling economy? Cryptolydian answers.

Cryptocurrency Frenzy

The region’s financial hub, South Africa, recently saw an expansion of cryptocurrency legislation. This thereby boosts state coffers in its volatile financial state.

Botswana too has seen significant interest in cryptocurrency. The developing nation has massive potential for growth in this sphere, as its usage and interest increases. Neighbouring Namibia has recently joined cryptocurrency developments in the region.

Meanwhile, Cryptolydian analysed the Zimbabwean situation. We noted that Zimbabwe could avoid a failing banking system and volatile fiat currency by the adoption of cryptocurrency.

Mozambique’s Potential

Mozambique, like Zimbabwe, has a struggling economy. Many nations, such as Argentina, have been widening their cryptocurrency interests. It views it as a way to lessen the burden caused by financial meltdowns. Ordinary Cubans have been using the virtual asset market as a way to bypass the poor Cuban market. They use it to buy goods otherwise not available in that nation.

Mozambique too may learn a lot from these fellow struggling economies. It may ease access to goods and raise the standard of living by increasing cryptocurrency’s role in its financial sector.

In 2018, the Bank of Mozambique warned its citizens against Bitcoin usage, reported Club of Mozambique. This is perhaps because of the unregulated nature of cryptocurrency, which the former Communist state might look at with skepticism.

However, the UN believes that Africa will see more welcoming policies for cryptocurrency. This is due to the severe financial difficulties in this region which will require a more stable currency.

Mozambique, a petrol rich nation, might do well to follow the lead of Venezuela and create its own cryptocurrency backed by the petroleum reserves. This would prove beneficial in mitigating the dire straits brought along by financial decline.

Mozambique will presumably soon adopt cryptocurrency. No doubt, the diverse array of experts in the Southern African Development Community (SADC), such as South Africa, would welcome the fellow SADC country into the rapidly expanding global cryptocurrency community.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.