Bitcoin is booming in South Africa, with tens of thousands of merchants accepting Bitcoin payments

Werner van Rooyen, head of business development and growth at BitX, South Africa’s largest Bitcoin exchange, spoke with Cointelegraph about the development of Bitcoin in South Africa.

Cointelegraph: How would you rate the demand for Bitcoin in South Africa?

Werner van Rooyen: The demand for Bitcoin is based on the potential that cryptocurrencies have; both as an improved payment technology (means of payment) and as an alternative asset class (store of wealth).

CT: Can you describe the exciting landscape for Bitcoin startups in South Africa?

WR: The biggest acceptance of Bitcoin in South Africa is that it is used by investors to store wealth. We have seen a significant increase in investment in Bitcoin. Exchanges such as BitX can provide Bitcoin exchange, wallet and storage services.

There are also some interesting blockchain startups in South Africa, one of which is Custos Tech, which is providing privacy and assistance for digital media through content distribution.

Additionally, the number of merchants, both online and offline, that accept Bitcoin in South Africa is growing.

CT: Can you elaborate on that?

WR: There are tens of thousands of merchants in South Africa that accept Bitcoin. Any merchant that accepts credit cards or bank payments through PayFast (South Africa's payment gateway) will also accept Bitcoin payments. Some of South Africa's largest online shopping platforms, including Takealot.com, also accept this payment method.

CT: What is making Bitcoin so popular in South Africa?

WR: Bitcoin seems to be gaining momentum in South Africa more than elsewhere; we are happily moving forward and working hard to create that momentum. South Africa also has a fairly good existing financial services presence. These make deposits and withdrawals easy, as well as widespread WiFi and mobile data coverage.

CT: Is the South African government Bitcoin-friendly?

WR: South African regulators recognize how Bitcoin works and how progressive it is. We are working with banks and regulators to help with Bitcoin education, consumer protection, money laundering/terrorist financing prevention, and to help give final formal Bitcoin regulatory advice.

CT: How do you see Bitcoin developing in South Africa over the next five years?

WR: I can’t make a prediction about the price of Bitcoin, nor can anyone, but I can clearly see a trend of increasing consumer and merchant adoption of Bitcoin, as well as regulators and more investors becoming actively involved in using Bitcoin, creating a more diversified portfolio.

CT: Do you think the Rainbow Nation (as South Africans call themselves) can continue to lead the way in Bitcoin acceptance across Africa?

WR: Absolutely!