Bitcoin Ekasi, the Last Hope for People who Lost their Last Hope

From Bitcoin Beach to Bitcoin Ekasi there is so much going on in South Africa. Now, is it the last hope for everyone?

Modeled after Bitcoin Beach, a South African township attests to the opportunities of a bootstrapped bitcoin economy. This is an opinion editorial by Hermann Vivier, co-founder of The Surfer Kids and Bitcoin Ekasi.

On Aug. 5, 2021, Joey Olden and Luthando Ndabambi walked into JCC Camp, a township on the outskirts of Mossel Bay, South Africa. They had a mission: find a township corner store willing to sell them something for bitcoin. Their eventual success later that afternoon (when they bought two cool drinks with sats sent over the Lightning Network) could be called the moment Bitcoin Ekasi was born. Their journey of one year is published in Bitcoin Magazine.

This is not the only thing happening related to Bitcoin and crypto in South Africa. The South African Reserve Bank has sent out guidelines to banks operating in the country regarding their dealings with crypto service providers.

The apex bank has encouraged banks not to cut off all ties with cryptocurrency, telling them that doing so may pose a "threat" to financial integrity. According to the bank, such an act could also lead to greater risks in the long run.

Banks Fear Regulatory Uncertainties and High Risk in Crypto Dealings

Chief Executive Officer of Prudential Authority Reserve Bank of South Africa, Fundi Tshazibana, signed the official notice. He stated that the risk assessment of banks shouldn't warrant the complete dropping of cryptocurrency entirely.

Many banks cut ties with crypto asset service providers (CASPs) because of higher risks and unclear regulations.