Virtual Crypto Technologies chief executive Alon Dayan says cryptocurrency is getting increasingly popular in Southern Africa. Photo: Supplied

CAPE TOWN – Virtual Crypto Technologies announced this week that it had signed an exclusive distribution agreement with a third-party company, Virtual Crypto SA, to begin selling Virtual Crypto’s products in Southern Africa. 

The developer of innovative software and hardware for cryptocurrency via point-of-sales systems, ATMs, tablets, PCs and mobile devices, said in a statement released on Wednesday that the agreement would generate immediate revenue for Virtual Crypto. 

Virtual Crypto Technologies chief executive Alon Dayan said cryptocurrency was increasingly popular in the Southern African region, which was a strong emerging market. “Cryptocurrency provides investors and businesses with an opportunity to diversify their portfolio.”

The use of cryptocurrency is evidently gaining traction in Africa with Pretoria brothers, Neil and Tony Ferreira also hopping on the bandwagon recently by launching Safcoin, a cryptocurrency aimed at the African market.

Cryptocurrency enthusiasts also expect its value to grow further after BlackRock, the largest asset management firm in the world with a total value of about $6.3 trillion (R91.6trln), recently showed interested in Bitcoin that spiked the price of Bitcoin shortly afterward.

BlackRock is reported to have signaled including Bitcoin as an exchange-traded fund, a move which market watchers said would be a major difference of what was seen in the market in December 2017 when Bitcoin peaked at an all-time high of $20 000, as a result of derivative companies listing Bitcoin as futures.

Richard De Sousa, a partner at AltcoinTrader said: “When the biggest player in the world shows interest in an investment like Bitcoin, people should consider it could change the current landscape of Bitcoin.

“If BlackRock comes on board and uses just one percent of their total value of $6.3trln,  that would be an injection of about $ 6.3 billion into buying Bitcoin. That would see the price easily going way past, even doubling December 2017’s highs.”

Virtual Crypto said the Southern African region deal was another step forward for it to penetrate global markets. 

Territories in the agreement include South Africa, Tanzania, Zambia and Zimbabwe, Angola, Botswana, the DR), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles and Swaziland.

Prior to Virtual Crypto launching in Southern Africa, using cryptocurrency for day-to-day transactions had been burdensome and effectively impractical due to lack of appropriate and accessible technologies available within the developing countries. 

The company cited one barrier that Virtual Crypto overcomes being the typical delay in completing cryptocurrency transactions. 

“We felt that by creating a solution that was both platform and cryptocurrency agnostic, the masses can employ the advantages of utilizing cryptocurrency for all of their needs,” said Dayan.

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- BUSINESS REPORT