Good news for those looking to purchase a vehicle using cryptocurrency in South Africa! 6DOT50, a local fintech startup, has recently partnered with BTS and Seriti Solutions to facilitate cryptocurrency payments for car purchases. Announced on January 10, 2025, this collaboration will enable potential buyers to use both new and used cars.
6DOT50 combines vouchers with banking-grade transactional services, allowing individuals and businesses to store value and transact without needing a bank account. By eliminating compliance barriers, they aim to include those excluded by the traditional financial system into the digital economy.
Prospective buyers will be able to use cryptocurrency to purchase cars at over 1400 dealerships nationwide, utilizing eight different cryptocurrencies, including Bitcoin. Reportedly, 6DOT50 has processed $1 million in crypto transactions across 90,000 retail locations.
As explained by the company founder, potential buyers can exchange their cryptocurrency for 6DOT50 vouchers, which can be redeemed on the Seriti Solutions platform. This streamlines the process of buying a vehicle via cryptocurrency compared to traditional payment methods.
“By establishing a link between cryptocurrency holders looking to spend their assets and dealerships requiring payments in local fiat currency, 6DOT50 vouchers offer an ideal solution,” said Warren Venter, founder of 6DOT50.
In addition to this offering, 6DOT50 has partnered with another major retailer in South Africa, Pick n Pay, which also accepts cryptocurrency payments at 1500 retail outlets.
South Africa Leads Cryptocurrency Adoption in Africa
Sub-Saharan Africa constitutes the smallest share of the global crypto economy at 2.7%, measured between July 2023 and June 2024, with modest growth reaching $125 billion in on-chain value.
South Africa Grants Crypto Licences to 248 Firms, with Another 56 Applicants Awaiting Approval.
Cryptocurrencies, particularly stablecoins, are gaining significant traction in South Africa, with the nation experiencing a 9.2% adoption rate. Stablecoins and other digital currencies tied to the dollar are becoming the preferred choice for the populace.
Broader Impact of Cryptocurrency in South Africa
The banking system across Africa often fails to provide connectivity to the remaining underserved populations. Cryptocurrency serves as a crucial tool for those in rural areas unable to meet banking requirements, allowing their inclusion in the digital economy.
Remittances represent a critical aspect for millions of Africans, facilitating connections across borders. While traditional financial services often have high fees and slow processing, stablecoin adoption has enhanced financial inclusivity in the region.
Regulated platforms play a vital role in advancing cryptocurrency adoption, with CASP licenses from the FSCA providing users with assurance that platforms operate under strict regulations and standards.
