Cryptocurrency adoption in Africa is on the rise as the total value of crypto market in the continent has increased by nearly 1,200%.
September 15, 2021, | AtoZ Markets – From July 2020 to June 2021, the volume of received on-chain value in Africa amounted to $ 105.6 billion – 1200% more than in the same period last year. The drivers were the popularity of P2P platforms and money transfers, as well as the desire to secure savings from inflation.
Africa has the smallest crypto market of any region we study, but its total tx volume grew over 1200% over the previous year. The region shows high grassroots adoption with countries like Kenya and Nigeria ranking high on our Global Crypto Adoption Index. https://t.co/NAklBlNZc7— Chainalysis (@chainalysis) September 14, 2021
Cryptocurrency adoption in Africa on the rise
Nigeria, South Africa, Kenya and Tanzania have entered the top 20 of the global cryptocurrency adoption index.
In terms of total rates, the continent ranked third on the planet. In terms of the share of transactions attributable to transfers of individuals, the region was on the first line – almost 7% against the world average of 5.5%.
Popular P2P platforms Paxful and LocalBitcoins accounted for 1.2% of all crypto transactions in Africa. Their business is supported by restrictions imposed by the authorities of many countries or a complete ban on banks’ servicing local bitcoin exchanges.
Cryptocurrencies also help the inhabitants of the continent bypass capital withdrawal limits, insure savings against depreciation of national currencies and save money on cross-border transfers.
As a reminder, Central Bank of Nigeria announced plans to launch e-naira digital currency later this year after Nigeria banned banks and financial institutions from dealing in or facilitating transactions in cryptocurrencies in February.
Earlier, Ghana’s monetary regulator announced an “advanced stage” in the creation of the CBDC.
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