Cryptocurrency adoption in Africa is in full swing despite socio-economic factors and obstacles. A positive report from cryptocurrency exchange KuCoin showed that cryptocurrency transactions have grown by as much as 2670% in 2022.
Surprising uptrend, sharp inflow correlates with low values observed in previous periods. The number of cryptocurrency transactions in Africa is about 2.8% of global volumes.
“The adoption of digital assets in Africa will continue to grow exponentially,” KuCoin CEO Johnny Liu told Cointelegraph, adding that “African countries have the highest adoption rate of cryptocurrencies in the world, surpassing even the largest countries such as the US, Europe and Asia. . . “.
Noru, the founder of Bitcoin Senegal, is convinced that the 1,000% rise in Bitcoin (BTC) adoption “will continue for years to come.”
“See how automobiles, cell phones and consumer electronics are gaining popularity across the continent. Africa is a continent where rapid progress and adoption are common. ”
Cryptocurrency transactions around the world within 90 days. Sub-Saharan Africa ranks second. Source: Useful tulips
In particular, the report notes that “more than 88.5% of cryptocurrencies created by Africans are cross-border transfers.” The low fees mean that “users pay less than 0.01% of the total amount of the transaction transferred in cryptocurrency.”
Due to high inflation and the over-proliferation of smartphones that effectively allow everyone to become their own bank, Africa also has a young, digitized indigenous population accustomed to cryptocurrencies. Africa is a powerful testing ground for the problems that cryptocurrencies are trying to solve.
Liu added a word of caution to the staggering levels of growth:
“This growth may depend both on local decision makers and on the attitude of individual officials towards cryptocurrencies. However, I believe that a promising future for digital money in Africa is inevitable.”
For example, in Central and West Africa, the adoption of BTC is growing due to distrust and discomfort regarding the local CFA currency. Cointelegraph previously analyzed the state of cryptocurrency adoption in Africa, noting that “the economic opportunities offered by the region are enormous.”
A merchant accepting bitcoins in West Africa. Source: Cointelegraph
For Liu, Africa is in an interesting position as the combination of “high inflation, high unemployment, poor access to banking services and huge international payment fees” creates a favorable environment for cryptocurrency adoption. finally:
“The economic challenges the region is facing are forcing people to look for new tools and technologies that can give them some of the economic freedom they currently lack.”
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In the long term, Africa is home to a host of benefits “that can only encourage the widespread use of digital assets by the local population.” Life expectancy in Africa is very low – just 19 years – and more than 40% of the population lives in urban areas.
“Another positive development is the growing technological awareness of the local population, with many young people learning programming and Internet technologies.”