Crypto in South Africa: Between Progress and Precaution – What You Need to Know
The Consensus Web3 and Crypto Perception Survey says that most South Africans have purchased cryptocurrencies. Most have bought Bitcoin (67%), less have bought Ethereum (29%) and BNB (25%). It also found that South Africa is one of the leaders when it comes to the adoption of cryptocurrencies worldwide and 47% of those surveyed call it 'the future of money'. The South African Reserve Bank (SARB) announced in its Digital Payments Roadmap that it has digital payment plans for the country as it looks into the potential of central bank digital currencies (CBDC).
While banks remain slow on the uptake, there are plenty of ways for people to pay for goods and services in the country. Pick n Pay customers have spent more than R1 million a month on groceries using crypto, says Luno; Deloitte has found that 85% of merchants in their survey are expecting to have crypto as a standard payment option by 2030; and Moneyweb reported that users can now buy anything from a Vespa to art using their hard-earned crypto. Currently, Nedbank and Absa customers can use cryptocurrencies in conjunction with their banking services through their approved providers – Luno and Ovex respectively.
The problem is that crypto isn't entirely secure and comes with serious risks for users. This has already been recognised by banks like Capitec who suspended their EFT and crypto wallet payments in October 2024 due to fraud. This move flies in the face of the narrative that crypto payments are an easier route for the unbanked as they demystify digital financial management for many people, and bypass the natural suspicion that many people have for financial institutions. Anecdotally, many people opt into crypto because it isn't a landscape dominated by banks.
Realistically, however, crypto comes with risks that aren't as easy to identify as those that come with traditional payment methods such as bank cards and cash. The first issue is that often crypto payments can be made anonymously which can have benefits but equally minimises the chances of redress if someone defrauds you. Financial institutions conform to FICA and have systems in place to protect customers that have been defrauded, but crypto can be something of a wasteland where it's easy to steal money and get away with it. There is no way to track transactions once the money has moved out of the account. Hacking a crypto wallet is a good way of stealing money while staying anonymous.
This really underscores the challenge with crypto – there's not a lot you can do to protect it. You are reliant on the company controlling the wallets, like Luno, and if someone accesses your account using your credentials and gets through the defences, the funds are gone. The same thing can happen with a bank, but the banks are regulated and there is a chance that you can get your money back.
Which begs the question – can users benefit from the ubiquity of cryptocurrency and its ability to cross borders and wallets with ease while still putting additional protective measures in place? The first is to try and make sure that the payment methods being used are legitimate. Is it a valid person requesting funds from you? So, when you receive an invoice, check that the wallet and details are correct before making payment.
Then, there are the essential safety protocols that should be implemented with your wallet from the outset. Have two-factor authentication, use strong passwords that are too challenging to hack, backup your wallet, place additional biometric or two-factor authentication protocols on all your devices that you use to access your cryptocurrency wallets, and remember to always be aware of scams and phishing.
These methods should also be bolstered by avoiding the use of public Wi-Fi when making transactions, ensuring your devices are up to date with security updates, and that you are aware of trending security issues or threats. If you double-check all these areas before you make a transaction, and stay on top of all transactions on your account, then you will be in more control over your crypto transactions and minimise the risk of fraud.
Copyright © 2022 AfricaBusiness.com - All materials can be used freely, indicating the origin AfricaBusiness.com Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
15 hours ago
- Crypto Insight
$1M Bitcoin in 2026 would signal trouble: Galaxy's Mike Novogratz
Galaxy Digital CEO Mike Novogratz says a million-dollar Bitcoin next year wouldn't be a victory but rather a sign that the US economy is in serious trouble. 'People who cheer for the million-dollar Bitcoin price next year, I was like, Guys, it only gets there if we're in such a shitty place domestically,' Novogratz told Natalie Brunell on the Coin Stories podcast on Wednesday. Novogratz prefers stability over soaring BTC prices 'I'd rather have a lower Bitcoin price in a more stable United States than the opposite,' Novogratz said, explaining that severe currency devaluations often come at the expense of civil society. When a national currency falls, investors often seek alternative safe havens to protect their wealth, and Bitcoin is frequently referred to as digital gold. Crypto analyst Wolf Of All Streets echoed a similar sentiment in an interview with Cointelegraph Magazine in July 2023: 'The faster it happens, the worse the world is.' However, several Bitcoiners have been speculating on the possibility of a million-dollar Bitcoin by 2026. One of them is BitMEX founder Arthur Hayes, who said in October 2023 that he expects Bitcoin to be $750,000 to $1 million by then. He has recently been more vocal about his prediction of Bitcoin reaching $250,000 by the end of this year. More recently, Jan3 founder Samson Mow told Cointelegraph Magazine in June that Bitcoin could reach $1 million 'maybe this year, maybe next year.' Novogratz says Scott Bessent 'is failing' Novogratz also voiced concerns over the US' ongoing debt issues. He suggested that US President Donald Trump's decision to bring on Treasury Secretary Scott Bessent has not had the anticipated outcome. 'As much as I like Scott Bessent and I think he meant everything he said, he's failing at bending debt to GDP,' Novogratz said. 'The deficit is going to be higher, not lower,' he added. Novogratz is nervous about the Bitcoin treasury play Novogratz warned that the growing adoption by Bitcoin treasury companies could be turning into a bubble. 'I'm a little nervous in general that there is what feels like a frenzy,' he said, revealing that Galaxy Digital receives approximately five calls weekly from new companies adopting the asset on the balance sheet. 'At one point, that's what bubbles feel like, when the cab driver asks you about the balance sheet company,' he said. It came only a couple of months after the venture capital (VC) firm Breed shared similar concerns. Breed argued a few Bitcoin treasury companies will stand the test of time and avoid the vicious 'death spiral' that will impact BTC holding companies that trade close to net asset value (NAV). Source:
Crypto Insight
2 days ago
- Crypto Insight
Bitcoin and Ether ETFs post $40B volume in ‘biggest week ever'
US-based spot Bitcoin and Ether exchange-traded funds (ETFs) just logged their strongest week of combined trading volume yet, according to an ETF analyst. 'Biggest week ever for them, thanks to Ether ETFs stepping up big,' ETF analyst Eric Balchunas said in an X post on Friday. Ether ETFs were 'asleep' for 11 months, says Balchunas 'Ether ETFs' weekly volume was about $17b, blowing away record, man did it wake up in July,' Balchunas said. It came the same week Bitcoin reached a new all-time high of $124,000 on Thursday, while Ether came close to reclaiming its November 2021 high of $4,878 on the same day, reaching $4,784 — just 1.94% below — according to CoinMarketCap. Since Thursday, Bitcoin has fallen 5.52% from its all-time high, trading at $117,659, while Ether has dropped 6.20% from its Thursday high, trading at $4,486. However, MN Trading Capital founder Michael van de Poppe said, 'There's way more to come for this cycle.' Ether ETFs take a sharp turn On Monday, spot Ether ETFs recorded their biggest day of net inflows ever, with flows across all funds totalling $1.01 billion. Across the first two weeks of August, they've recorded more than $3 billion in net inflows marking their second-strongest monthly performance to date. Balchunas said it was almost as if Ether ETFs were 'asleep' for the past 11 months and 'then crammed' one year's worth of activity into six weeks. While there was excitement ahead of their July 2024 launch, Ether ETFs initially saw lackluster demand, sparking speculation that Wall Street had yet to find a clear use case for the asset. Meanwhile, Bitcoin ETFs reached new highs of $73,679 just two months after launching in January 2024. Analysts are now drawing parallels between Ether's recent price surge and Bitcoin's post-ETF rally. 'This move is comparable to the BTC ETF launch, when Bitcoin continued to rally upward,' van de Poppe said, adding, 'The ETFs have a massive impact and there's a lot to come for Altcoins.' However, some analysts warn that investors must be patient before Ether reaches a new all-time high. Nansen analyst Jake Kennis said in comments shared with Cointelegraph that a new all-time high for Ether may be weeks or months away, despite ETH currently sitting only a few hundred dollars off a new record price. Source:
Arabian Post
2 days ago
- Arabian Post
Futu Securities Expands Retail Trading with Solana in Hong Kong
Futu Securities International has launched Solana trading on its Futu NiuNiu App in Hong Kong, marking a significant step in expanding access to digital asset markets. The launch comes on the heels of a broader push for crypto adoption across Asia and aims to offer more flexible trading opportunities to the region's retail investors. This move positions Futu Securities, an influential brokerage firm, as a key player in the competitive landscape of cryptocurrency trading in Hong Kong. The company has been focusing on bridging traditional financial services with digital asset trading, reflecting a growing trend in the region towards integrating blockchain technology into mainstream investment platforms. The new trading feature allows users to trade Solana directly, a cryptocurrency known for its high-speed transactions and scalability, which have positioned it as a potential competitor to Ethereum. The decision to add Solana to the platform follows a series of strategic partnerships and product enhancements by Futu, aimed at capturing a share of the rapidly evolving crypto trading market. ADVERTISEMENT Solana's inclusion is particularly notable given the increasing popularity of decentralized finance platforms and non-fungible tokens, sectors where Solana has made significant strides. Its fast transaction speeds and lower fees have made it a favourable option for developers and traders alike. By offering this asset, Futu Securities provides its customers with greater flexibility to tap into the growth of blockchain-based applications. The launch also comes at a time when other crypto trading platforms are making similar moves to expand their offerings. The competitive pressure is particularly intense in Hong Kong, a city that is positioning itself as a major hub for digital assets in Asia. Several firms are already catering to the burgeoning demand for cryptocurrency products, prompting regulators to adapt to the new landscape. Hong Kong's regulators have taken a balanced approach to crypto oversight, striving to foster innovation while ensuring the protection of investors. This regulatory stance has attracted firms like Futu to launch new offerings with confidence, knowing that the regulatory framework is supportive of such developments. Futu's move into the retail Solana trading space also ties into the broader trend of financial firms integrating digital currencies into their portfolios. The platform already offers trading in various other digital assets, including Bitcoin and Ethereum, making Solana's addition a natural extension of their crypto offerings. This shift is not isolated to Hong Kong alone. Several other financial institutions in Asia have been exploring ways to incorporate blockchain technology into their traditional business models. Many see digital currencies as a way to diversify their service offerings and attract a new wave of tech-savvy investors who are more inclined to explore innovative financial products. Futu Securities' push into the crypto space also follows its international expansion strategy. The company has been actively seeking ways to grow its customer base beyond the borders of mainland China, where stricter crypto regulations have limited access to digital asset markets. By capitalising on Hong Kong's more open regulatory environment, Futu aims to strengthen its position in the broader Asia-Pacific region. As retail investors in Hong Kong and across Asia continue to show increasing interest in cryptocurrencies, platforms like Futu NiuNiu are tapping into this growing demand by offering accessible and secure trading options. This aligns with broader trends in the financial industry where the lines between traditional and digital assets are becoming increasingly blurred. The decision to offer Solana trading comes at a pivotal moment for the cryptocurrency market. Solana has garnered attention as a potential alternative to Ethereum, largely due to its speed and lower costs. With the platform's growing user base, the ability to trade SOL on a mainstream brokerage app represents an important shift in how digital assets are perceived by traditional investors.
