Cryptocurrency adoption in Africa is on the rise despite socioeconomic factors and headwinds. A positive report Cryptocurrency exchange KuCoin shows that crypto transactions increased by as much as 2,670% in 2022.
An amazing growth trend, the steep inflow is related to the low levels seen in previous periods. The number of crypto transactions in Africa accounts for about 2.8% of the global volume.
Johnny Lyu, CEO of KuCoin, told Cointelegraph that “digital asset adoption in Africa will continue to grow exponentially,” adding that “African countries have the highest crypto adoption rate in the world, and even the largest regions like the United States.” outperform States, Europe and Asia.”
“Look at how cars, mobile phones and consumer electronics are taking off on the continent. Africa is a continent where lightning-fast progress and adoption are common.”
Specifically, the report cites that “more than 88.5% of cryptocurrency transactions made by Africans are cross-border remittances.” Low fees mean that “users pay less than 0.01% of the total amount of the transaction transferred in cryptocurrencies”.
From high inflation and the proliferation of smartphones – enabling virtually anyone to become their own bank – Africa also has a young, digitally native population, used to digital currencies. Africa is a robust proving ground for the problems cryptocurrencies are trying to solve.
Lyu added a note of caution to the stunning level of growth:
“This rate of growth may depend on local policymakers as well as the stance of individual officials on cryptocurrencies. Still, I believe a bright future for digital money in Africa is inevitable.”
In Central and West Africa, for example, BTC Adoption grows against a background of distrust and unease in dealing with the local currency, the CFA. Cointelegraph previously analyzed the state of crypto adoption in Africa, noting that “The economic opportunities in the region are immense.”
For Lyu, Africa is in an interesting position as the combination of “rising inflation, high unemployment rates, poor access to banking services and huge fees for international payments” creates an environment conducive to crypto adoption. Eventually:
“Financial problems in the region are forcing people to look for new tools and technologies that can give them some of the economic freedom they currently lack.”
In the longer term, however, Africa offers a wealth of benefits “that can only contribute to the widespread use of digital assets among local people.” The average age in Africa is very low – at just 19 – and over 40% of the population live in cities.
“Another positive phenomenon is the growing technological awareness of the local population, as many young people deal with programming and internet technologies.”
https://cointelegraph.com/news/crypto-users-in-africa-grew-by-2-500-in-2021-report Crypto Users in Africa Up 2,500% in 2021: Report