Cryptocurrency in Eritrea: A Quiet Revolution and Its Impact on Gambling
Cryptocurrency is becoming a global phenomenon, offering financial freedom and alternative banking methods, and even in countries like Eritrea, its influence is beginning to grow. While Eritrea's access to global financial markets is limited, cryptocurrencies present an innovative solution for financial inclusion and even an emerging avenue for entertainment, especially in the gambling industry.
Cryptocurrency Adoption in Eritrea
Eritrea remains a largely closed-off economy with strict capital controls and limited access to the global financial system. Only about 7% of Eritreans had access to the internet as of 2020, significantly slowing the adoption of digital financial innovations like cryptocurrency. However, in the Horn of Africa and neighbouring countries, cryptocurrency is starting to make an impact, especially for remittances from the Eritrean diaspora. Remittances form a vital part of the Eritrean economy, and cryptocurrencies like Bitcoin are being explored as an alternative to traditional money transfer services like Western Union, which have higher fees and slower processing times.
Cryptocurrency adoption in Eritrea is still in its infancy, but the interest is there. Neighbouring countries such as Kenya and Sudan are seeing increased crypto usage, and as internet access slowly expands, Eritrea could follow this trend. Platforms like Binance and Paxful, widely used in other parts of Africa, could eventually see more users from Eritrea looking to bypass the country’s restrictive financial system.
The Impact of Crypto on Gambling in Eritrea
Gambling is tightly regulated in Eritrea, with limited opportunities for land-based casinos or online gambling platforms. However, the decentralised nature of cryptocurrencies is gradually opening up new opportunities. Online gambling platforms that accept crypto provide an avenue for Eritrean players to participate in global gaming markets without the need for traditional banking. This is significant for a country like Eritrea, where financial transactions are closely monitored and regulated.
In the global context, crypto gambling is on the rise, with the worldwide market for crypto casinos growing at a rapid pace. These platforms provide advantages such as anonymity, speed of transactions, and the ability to bypass traditional financial systems. For Eritreans, this could mean participating in global gambling markets without having to worry about local restrictions, though the small number of internet users in the country currently limits the full-scale impact.
The Rise of Crypto Gambling
Globally, crypto gambling is growing quickly. The market value of crypto gambling surpassed $1.4 billion in 2020, and it's set to grow even further in the coming years. This rise is driven by the anonymity and security provided by blockchain technology, which appeals to users in regions with stricter financial controls or where traditional gambling is limited, like Eritrea.
International platforms accepting Bitcoin, Ethereum, and other cryptocurrencies enable users from Eritrea to engage in gambling activities outside the scope of government regulation. While these platforms are still niche in Eritrea, global trends suggest that as access to the internet and cryptocurrency grows, more Eritreans may be able to participate in crypto gambling in the future.