Cryptocurrency adoption is increasing in Africa. A recent report revealed that the number of crypto transactions has increased by 2,670% in certain African countries.
The report was based on crypto transactions data collected by popular Crypto exchange KuCoin.
Africa constitutes 2.8% of the global crypto trading volume. In the past year, transactions grew by 1,250 – 2,670% in African countries of Nigeria, South Africa, Kenya, Egypt, Tunisia, Morocco, and Senegal. On average, the monthly transactions in crypto have surged 1,386% from January 2021 to January 2022.
The number of crypto users has also shot up by 2,467%. Nevertheless, the average amount of assets per transaction has diminished depicting the interest of small investors in crypto as well alongside large organizations.
Reasons for Rising Crypto Adoption in Africa:
The report extensively covers the motivating factors for adopting cryptocurrencies in Africa which include high rates of inflation and devaluations of local currencies. Populous are prone to keep their savings in Crypto for avoiding price depreciation.
Technological advancement also has a huge role in spurring the growth of the Crypto sector. Young people with smartphones have access to crypto exchanges. They can get crypto education and learn about Blockhain with Learn and Earn platforms of cryptocurrency exchanges.
Crypto as a payment method also helps in paying people for their labor over the internet. KuCoin’s study also revealed that 85% of the transactions were performed across borders. It costs a lot less to send digital assets to another country via P2P compared to fiat transfers.
Lastly, there is a global movement of moving away from Fiat towards crypto. Some countries have legalized crypto trading while others are planning to adopt crypto as a legal tender. Therefore, the acceptance of Crypto among Africans is also increasing.