Crypto Users in Africa Grow 2500% in 2021: Report

Cryptocurrency adoption in Africa is on the rise despite socioeconomic factors and headwinds. A positive report by cryptocurrency exchange KuCoin shows that crypto transactions have increased by up to 2,670% in 2022.

An astonishing growth trend, the strong influx is related to the low values ​​observed in previous periods. The number of crypto transactions in Africa represents approximately 2.8% of global volumes.

Johnny Lyu, CEO of KuCoin, told Coin-Crypto that “digital asset adoption in Africa will continue to grow exponentially”, adding that “African countries have the highest crypto adoption rate in the world, even better than the largest regions, such as the United States , Europe and Asia.”

Nourou, the founder of Bitcoin Senegal, is confident that the thousand percent growth rates for Bitcoin (BTC) adoption will “continue for years to come.”

“Look at the way cars, mobile phones and consumer electronics took off on the continent. Africa is a continent where rapid progress and adoption is common.”

Global crypto transactions over a 90-day period. Sub-Saharan Africa is in second place. Source: Useful Tulips

In particular, the report cites that “more than 88.5% of cryptocurrency transactions made by Africans are cross-border transfers.” Low fees mean that “users pay less than 0.01% of the total amount of the transaction transferred in cryptocurrencies.”

From high levels of inflation and increasing smartphone penetration – essentially allowing anyone to become their own bank – Africa also has a young, digitally indigenous population accustomed to digital currencies. Africa is a robust testing ground for the problems cryptocurrencies are trying to solve.

Lyu made a reservation, adding a caveat to the staggering growth levels:

“That rate of growth may depend on both local policymakers and individual officials’ views on cryptocurrencies. Still, I believe that a promising future for digital money in Africa is inevitable.”

For example, in Central and West Africa, BTC adoption is growing against a background of mistrust and discomfort in using the local currency, the CFA. Coin-Crypto has previously analyzed the state of crypto adoption in Africa, noting that “the economic opportunities presented by the region are immense”.

A trader who accepts Bitcoin in West Africa. Source: CoinTelegraph

For Lyu, Africa is in an interesting position, as the combination of “growing inflation, high unemployment rates, poor access to banking services and huge fees for international payments” creates an environment conducive to crypto adoption. in the end:

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

Related: One Man’s Plan to Pill a Nation Orange: Bitcoin Senegal

In the long run, however, Africa offers a wealth of benefits, “which cannot but contribute to the widespread use of digital assets among the local population.” The median age in Africa is very low – only 19 years old – and more than 40% of the population is urban.

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

Leave a Comment