Friday, March 1, 2024

Crypto Users In Africa Increase By 2500% In 2021: Analysis

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Crypto users in Africa increased by 2500% in 2021 according to a recent report by Kucoin which we read more about in today’s latest cryptocurrency news.

Crypto users in Africa and the adoption rate in Africa are on the rise despite the many socioeconomic factors and issues. The positive report by crypto exchange Kucoin shows that the crypto transactions increased by 2670% in 2022 and the growth trend relates to teh low values which were observed during previous periods. The number of transactions in crypto in Africa reached 2.8% of the global volumes.

The CEO of Kucoin, Johnny Lyu said that the adoption of digital assets in Africa will continue to grow and added that the African countries have the highest adoption rate in the world and outperformed the biggest regions like Asia, Europe, and the United States. Nourou as the founder of Bitcoin Senegal is convinced that the growth rates for BTC adoption will rise in the upcomign years:

“Take a look at the way in which cars, mobile phones and consumer electronics took off on the continent. Africa is a continent where lightning-fast progression and adoption is common.”

crypto transactions
Worldwide crypto transactions over a 90 day period. Sub-Saharan Africa is second. Source UsefulTulips

The report cited that more than 88.5% of crypto tranactions made by Africans are cross-border transfers with low fees meaning that the users will pay less than 0.01% of the overall amount of the transaction transferred in crypto. The high inflation levels and the smartphone penetration on the market, allow anyone to become their own bank as Africa has a young and digitally native population that is accustomed to digital currencies and Africa is a robust testing ground for issues that crypto are trying to solve. Lyu added:

“That rate of growth can depend on both local policy-makers and separate officials’ stances on cryptocurrencies. Still, I believe that a promising future for digital money in Africa is inevitable.”

West Africa and Central Africa for example have a BTC Adoption rate growing against the backdrop of mistrust and discomfort using local currencies like the CFA. For Lyu, Africa is in a great position given the combination of the growing inflation, the high unemployment rates, and the poor access to bank services:

“Financial problems the region is experiencing are forcing people to look for new instruments and technologies that can give them some of the economic freedom they currently lack.”

In the long-term, Africa hosts a wealth of advantages that can’t contribute to the widespread use of digital assets among locals with the median age of Africa being very low at 19 years old and over 40% of the population being urban.

“Another positive phenomenon is the growing technological awareness of the local population, with many young people exploring programming and internet technologies.”

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