Investments in cryptocurrencies are growing rapidly in Africa. Such assets are most popular in countries with high inflation and a difficult economic situation.
According to the KuCoin exchange, the number of transactions with Bitcoin and other digital currencies in Africa grew by almost 2,500% last year.
Sudan’s central bank fears an increase in the number of cryptocurrency holders in the country. To dampen interest in such instruments, the regulator reminded citizens of the risks of investing in Bitcoin.
Cryptocurrencies are volatile instruments. At any moment, they can fall in price, and investors will lose their money. In addition, cryptocurrencies are used in criminal schemes.
Sudanese law has no definition of digital currencies and no mechanism to protect investors. Cryptocurrencies are very popular in Sudan as local money is depreciating, the Central Bank reminded.
Inflation rose 360% last year. The economy is deteriorating rapidly, so Sudanese prefer to transfer all their savings into digital assets that are independent of the Central Bank and the government.
