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Cryptocurrency Adoption Increases Significantly in Africa | Finance Magnates

www.financemagnates.com 15 September 2021 05:04, UTC
Reading time: ~2 m

Global cryptocurrency adoption is on the rise. Emerging economies across Asia saw a significant jump in the overall users of digital currencies during the last few months. But Africa is also becoming an exciting and dynamic crypto market due to a substantial growth of more than 1,200% in the last 12 months.

According to a recent research report published by Chainalysis, one of the leading blockchain data platforms, African countries like Kenya, Nigeria, South Africa, and Tanzania are ranked among the top 20 of the company’s Global Cryptocurrency Adoption Index.

P2P platforms, the need for remittances, and the use of digital assets as a hedge against rising inflation have played an important role in the growing adoption of cryptocurrency assets in the region.

“One important trend in Africa has been the continued growth of P2P crypto exchanges over the last year. Why are P2P platforms so popular in Africa? One reason is that some countries, such as Nigeria and Kenya, have made it difficult for customers to send money to cryptocurrency businesses from their bank accounts, either by passing laws or simply by advising banks not to allow these transfers,” Chainalysis mentioned.

“However, this isn’t an issue for P2P platforms, which are non-custodial and let customers trade cash for cryptocurrency amongst themselves. From there, users can send cryptocurrency to centralized exchanges for more trading options if they so choose,” the blockchain data platform added.

Global Cryptocurrency Adoption

In its latest research report, Crypto.com highlighted a massive jump in the total number of global cryptocurrency users during the first half of 2021. International cryptocurrency users crossed the mark of 220 million in June 2021.

The Global Crypto Adoption Index of Chainalysis shows that Kenya is one of the top 5 countries in cryptocurrency adoption. Nigeria came at the 6th spot while South Africa, Ghana, and Tanzania came at the 16th, 17th, and 19th spot respectively. Vietnam topped the list of the Global Crypto Adoption Index.

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