Sitting not-so-pretty with a junk status credit rating, South Africa’s economy is in a tad bit of trouble.

But, as with our Zimbabwean neighbours, we’re being forced to look for a “Plan B” option.

This is according to economist Dawie Roodt who explained how recent credit downgrades and fears of a deteriorating economy make South Africa “one of the best case studies for why bitcoin and other cryptocurrencies are so important,” reports Business Tech.

Sure, South Africa might not necessarily be a safe haven, but bitcoin has “remained a definitive way of getting your money out of the country” because, well, the cryptocurrency isn’t exactly regulated by the government.

Deep, hey? Roodt continues:

“It’s in no-man’s land. There is no proper legislation, no real rules or regulations around these private currencies,” he said.

“Most authorities globally simply do not understand this and in the case of South Africa, the politicians don’t have a clue. There are a few bureaucrats that know a little bit, like at the Reserve Bank.”

“That is traditionally an institution that is well informed, but even they are behind the curve. I don’t think the bureaucrats and politicians realise the shit-storm that is about to hit them.

“They are going to get caught with their pants down; they haven’t got a clue about the power of this technology and how it will change the way we live. SA is ideally positioned to capitalise and implement this sort of technology which will eventually put the power where it should be – and that is in the hands of the individual,” he said.

We already touched on this subject in May, when we wondered just how the tax part of owning bitcoin would work. The use of blockchain technology, after all, allows for a decentralised network that isn’t controlled by the banks.

Winning? Time will surely tell.

As it stands, cryptocurrency exchange Luno has over one million customers all over the world, with 750 bitcoin worth of transactions occurring in South Africa alone, reports MyBroadband.

With one bitcoin standing at R134 548, that amounts to R100 911 055.

And that’s how we do it.

[source:busiensstech]