The adoption of cryptocurrencies and other blockchain products saw a staggering growth in the past few years and some primary reasons are the popularity of decentralized technology and the younger generation Worldwide, yet underdeveloped nations with weak national currency have majorly contributed.
In the most recent development, it has been reported citing the official press release that the National Bank of Namibia has given a temporary green signal to 2 virtual asset service providers of the nation.
It is worth noting the approval is valid for 6 months of the time period during which they are expected to put their houses to obtain full licensing. Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC are two exchanges that secured provisional approval from the Bank of Namibia.
The additional information notes that the provision approval will not enable the firms to offer services to the general public, but instead they can establish their operations including the hiring of staff and also establish required infrastructure.
A person aware of the notes that once the virtual asset service providers meet all the required conditions of the Central Bank they might likely get the final approval to operate for the general public.
While talking to a regional media outlet a spokesperson of the bank noted that if exchanges meet the requirements before the tenure of 6 months the Central Bank might review the preparations, infrastructure, and others to grant the final approval before the duration of 6 months.
Crypto adoption at peak in underdeveloped nations including Namibia
Underdeveloped nations have been actively exploring the potential of blockchain-based products, some of them even have a higher adoption rate compared to their national currencies.
As per the available data set, there are dozens of underdeveloped nations that have adopted crypto as the mode of payment but there the legalization status is still pending. Most recently Namibia has taken significant steps to tax cryptocurrencies and other digital assets in order to earn revenue by taxing the decentralized category.
It is important to note that Namibia has structured a few guidelines concerning the digital asset industry, and there are provisions for severe punishments if someone violates the rules formed by the governmental bodies.
According to data from Statista the revenue of the cryptocurrency market of Namibia is estimated to reach US$417.1k by 2025 and the average revenue per user is anticipated to be US$52.6 in the same time frame.
Namibia’s crypto market is expected to expand by 6.53% between 2025 and 2028, reaching a market value of US$4.34 million in 2028. However in terms of crypto adoption India stands at the top of the list followed by Indonesia, Nigeria, the United States, and the United Kingdom.
