47% of South Africans plan to invest in crypto-coins, survey says

South Africa has the most sophisticated financial economy on the African continent, and despite regulatory concerns, its citizens are increasingly inclined to invest in and trade in crypto-coins.

The MyBroadband Cryptocurrency 2018 survey - completed in April - reveals that even South Africans who have never had contact with the crypto-coins are planning to invest in this asset - whether buying directly or adhering to digital coin mining, for example.

"Of the respondents who do not have or never had crypto-coins, almost 50 percent said they plan to invest in some aspect of this ecosystem," MyBroadband news site reported.

Several other tech-savvy natives who responded to the survey revealed that they are planning to buy tokens, though they have never invested in the area.

The overall value of Bitcoin and Ethereum skyrocketed in December 2017 before reaching the lowest level in early 2018. This is because crypto-currency prices are susceptible to development and regulatory issues around the world.

About 25% of MyBroadband survey respondents plan to "invest in crypto-coins," while "15% will invest in crypto-coins and mining," while another 7% plan to focus on digital coin mining.

Cliffe Dekker Hofmeyer considered that recent measures taken by the South African Tax Authority (SARS) to tax the crypto-coins were "anticipated" due to "increasing popularity and after the absence of legislation on taxation and regulation" of virtual currencies.

Reports suggest that crypto-currency trading is on the rise in South Africa, with some restaurants and companies already accepting digital currency for payments.

Zimbabwe bane crypto-coins

In contrast to South Africa, the also African Zimbabwe, has avoided recognizing the Bitcoin trade, although the criptomoedas increasingly aid the liquidity and the shortage of foreign currencies for international transactions.

With the justification of "safeguarding the integrity, security and liquidity of the national financial system," Zimbabwe's Central Bank has banned the country's banking institutions from processing crypto-derivatives for traders and investors.

Due to the growing interest of the population, the decision provoked debate in Zimbabwe.

According to Golix, the country's largest crypto-currency trading platform, the ruling follows the example of other "financial regulators around the world who have identified the dangers posed by virtual currencies to financial stability; which include risks of loss and volatility, theft and fraud, money laundering and other criminal activities. "