Guest Post ByMichael Kimani
On September the 16th, Tuesday evening the Bitcoin Kenya Meet Up held one of its regular meet ups at the iHub. The turnout was fantastic and more than I had anticipated. I was particularly thrilled that the crowd was a healthy mix of gender, age groups and most of all, enthusiasm. From the turnout and conversations we had, I am convinced that Kenyans are progressive and highly interested in emerging ideas. Digital currency and Bitcoin are examples of such novelties that hold tremendous opportunities for aspiring Kenyans within the global marketplace. If you made it for the meet up, thank you. I made a summary on slide share [here] that can get you up to speed on our meet up discussions.
What is Bitcoin?
Bitcoin is a fascinating technology - only 5 years old but yet, has managed to capture the world’s attention. Briefly, Bitcoin is 3 things:
Bitcoin is a distributed network also known as the public ledger block chain. Anyone can build applications on top of this network just like developers create applications on top of the internet platform.
Bitcoin is a unit of account that is considered as currency. In this regard, it is increasingly used for remittances, buying goods and services, payments, e commerce, salaries etc.
Bitcoin is also considered as a digital asset. There is a limited number of bitcoins that will ever exist and they are produced at a decreasing rate. Its scarcity and decreasing production rate is compared to gold. Individuals, investment firms and speculators buy into bitcoin as a store of wealth long term.
How can bitcoin impact my life?
Have you ever wondered why can’t you send/receive money as quickly as you do email or a whatsapp message? Well, until Bitcoin came along, there was NO way to do this. Bitcoin lets you transfer values of ANY amount, over the internet from anywhere across the globe instantly for almost zero fees! Whether you’re sending 1 billion KES or 1 KES, the cost is the same regardless. Additionally, setting up to receive and send bitcoins is as easy as signing up for email. It is not controlled by any government or authority and exclusively resides on the internet.
The implications of these attributes for Kenya and other tech centric communities in East Africa are tremendous. Young people are increasingly seeking opportunities online to monetize their creative skills, writing, app development, music, goods and services, trading financial markets – the list is remarkably long. Bitcoin makes it easy to sell to a global audience and instantly get paid from anywhere around the globe. Through Bitcoin startups in Kenya (BitPesa, TagPesa and BitX), you can receive Bitcoin payments instantly straight into your Mpesa/Airtel/Orange mobile wallet. For remittances, Kenyans in diaspora now send money to relatives in Kenya instantly for ultra-low costs, cutting out time delays andsaving their relatives the trouble of walking to an ATM/ Western Union agent.
By combining Bitcoin and the ubiquitous mobile wallet in East Africa, YOU can participate in a global marketplace seamlessly and easy.
Call to Action – Role of Digital Currency in Kenya’s Vision 2030
The first is a map showing the legal status of Bitcoin around the world. The dark predominant shade on Africa means that the legal status of Bitcoin in much of Africa is unknown. Conversely, green indicates permissive Bitcoin legal status.
Kenya’s Vision 2030 - A Globally Competitive and Prosperous Kenya concisely captures why we should get involved in digital currency technology. Under Chapter 2.2 Science, Technology and Innovation (STI) it states:
“In view of the importance of STI in society, efforts will be made to promote awareness of new ideas and discoveries to the general public. Technological advances for example, have reduced the cost of transport and communication and created new opportunities for business and employment.”
As a country leading the region in tech adoption, it is imperative that we get involved for our sake and the region. We are well placed to spearhead innovation in the region and set an example for the region.
I could go on about the tremendous opportunities that Bitcoin opens up for us as Kenyans. Come join us for our next meet up and find out more. Get in touch with the ADCA at info@africandca.org to find out more about our activities. You can also visit our website to find out more.
(Photo CreditElijah Karari)
About the Author: Michael Kimani is the Lead Coordinator at the ADCA @African_DCA www.africandca.org Based in Nairobi, Kimani advocates bitcoin & digital currencies in East Africa. He also regularly writes on digital finance, electronic payments and digital currencies in East Africa on @pesa_Africa.
