Now Luno has conducted a worldwide survey called the Future of Money, with it looking at seven key markets (including South Africa) to analyse the understanding and attitudes that individuals across the globe have developed towards the financial system.
“The survey results show that emerging markets are seeking a change to the financial system which was created 75 years ago. The increase in population, changes to the distribution and inequality of wealth and the tremendous steps forward in technology means that the current financial systems need to undergo significant change,” explains Marius Reitz, GM for Africa at Luno.
“Individuals in these markets cannot afford to, and should no longer need to, pay extortionate exchange rates, accept national currency devaluation or lose out when they simply transfer money. Access to a more inclusive financial system will enable people everywhere to think of new and better ways of exchanging value and technology allows this,” adds Reitz.
More specifically the survey highlighted three key areas of concern for local consumers – economic benefit, security and transparency.
Looking deeper into the numbers, the survey found that South African respondents did not feel very secure about their financial situation at 36 percent.
While that does make for worrying reading, the survey also shows that South Africans are more savvy than their European counterparts, with SA ranking second among all regions for respondents in terms of investing in products such as unit trusts or stocks.
Added to this 75 percent of SA respondents make use of mobile banking, with 73 percent of them also budgeting their monthly expenditure.
Perhaps the most telling insights from the Future of Money survey are the fact that 27 percent of South Africans believe their economy is performing poorly, along with 22 percent noting a positive attitude towards a single global currency making the current financial system better.
“The global monetary system has changed very little over the last 75 years, especially in developed economies. Technology is advancing at a rapid speed, and we need to ensure that institutions adopt technologies that allow emerging markets to have access to money and transfer of assets – something which developed economies have built a system around to benefit a stable and strong economy,” adds the Luno GM.
“We anticipate that developing markets will be the lead adopters of cryptocurrency coins being launched by some of the of the largest tech giants. People in emerging markets tend to be more financially savvy out of necessity, according to our research. This means that they need the benefits that new coins can offer and they understand them,” Reitz concludes.
Whether Libra and Calibra, or some other solution will drive the adoption that Luno predicts, remains to be seen.
Regardless it’s intriguing to see that emerging markets like South Africa and Nigeria are viewed as the key countries that could drive cryptocurrencies in coming years.[Image – CC 0 Pixabay]