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Experts Say Bitcoin Takes a Backseat to Cryptocurrency Adoption in Africa with USDT Ruling – TradingView News

Core items:

  • Russell Okung observes that USD stablecoins are preferred over BTC in Africa.
  • Austin Campbell confirmed that stablecoins remain favorable for many in the crypto space.
  • Campbell noted that while BTC serves as a store of value, stablecoins are preferred for everyday transactions.

Prominent figures in the crypto space have recently revealed a notable pattern in the African crypto market, suggesting that Africans are increasingly favoring US dollar-backed stablecoins over Bitcoin (BTC).

Russell Okung, a professional athlete known for his advocacy of Bitcoin, initiated the conversation on X. Okung revealed that he promoted the Lightning Network while in Africa and encountered a sobering reality.

According to the disclosure, more people are inclined to trade USDT instead of Bitcoin. Essentially, he found that African crypto enthusiasts generally preferred the USD, even when it was in “synthetic” form.

During my time in Africa advocating for the Lightning Network, I was confronted with a cold, hard realization.

Despite my efforts, I found that more people were interested in dealing with USDT than Bitcoin.

They wanted USD, even if they were synthetic versions.

February 18, 2024

In response, other X users commented on a similar situation in Africa and also observed the same trend in Lebanon and Argentina. One user pointed out that people with financial difficulties cannot afford the volatility of cryptocurrencies. Therefore, exposure to USD remains a safer option than local currencies.

Similarly, Austin Campbell, founder and managing partner of Zero Knowledge Consulting, recognized a similar trend during his tenure as chief risk officer at Paxos Trust Company, noting that USD stablecoins remain the preferred option for many people.

I've observed the same behavior on Paxos; Most people wanted to keep their money in USD stablecoins.

This will continue as long as the USD is valued and the currency is well managed. If not, that will change. This is the nature of all reserve currencies through… https://t.co/QddApOFepo

February 19, 2024

Campbell emphasized that this preference will remain as long as the USD maintains its value. However, he pointed to the possibility of this dynamic shifting if the value or management of the USD falters.

Meanwhile, Campbell noted that the preference for stablecoins is consistent with the understanding that cryptocurrencies like Bitcoin may function better as a store of value than as a medium of exchange for everyday transactions.

To support his point, he made a comparison with gold. Campbell explained that people don't typically use gold to pay for everyday items like sandwiches. Instead, they store gold in vaults and occasionally sell portions of it to obtain easier fiat currency for purchases.

Essentially, he stated that no single form of money excels at both liquid and deep transactions while also serving as a reliable store of value. Ultimately, he believes that the preference for USD stablecoins represents a significant departure from the local system of many countries.

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