Africa loves crypto! Report finds transactions jumped 2,500% in 2021
Currently, crypto transactions across Africa only account for 2.8 per cent of global volumes. However, interest in crypto is soaring, with KuCoin reporting an increase of 2,670 per cent increase in transactions in the past year.
KuCoin – an exchange with a strong presence in Africa – acknowledges that the region posts some significant issues for crypto. Across the continent, only 45 per cent of adults have access to a smartphone. Furthermore, only 33 per cent can access the Internet when they need to. However, in those pockets where access to the resources needed to invest in crypto is better, the people are embracing the opportunity it presents.
“Cairo, Cape Town and Lagos can be considered the engines of the digitization process in the region,” the report notes.
“Kenya is a separate area of focus in East Africa, with the number of cryptocurrency transactions in Nairobi — its capital — being 64 per cent higher than in the rest of the region. Durban, Western Cape, and Gauteng in the southern part of the continent, have also taken the path of increasing the number of users of modern technologies.”
A contenent primed for crypto
KuCoin goes on to argue that other markets and nations across Africa are keenly interested to be more involved in Crypto.
“Tunisia and Morocco are also supporting technological projects,” the report notes. “The 2018 law encouraging the startup culture in the region has increased the rate of technological project launches, and people are eager to embrace modern technologies for use in their work and as a means of entertainment.
“Côte d’Ivoire, Senegal, and Dakar in West Africa, are French-speaking countries that have partnered with international organisations to allocate large sums for the development of digital ecosystems.”
For Africans, crypto is a risk mitigation strategy. People across Africa well understand the impact of inflation. To this day, nations such as Sudan (260 per cent inflation) and Ethopia (66 per cent inflation) are grappling with an almost impossible-to-manage deflation of purchasing power. Those that live in nations where inflation is relatively low still understand how quickly that can turn around. Furthermore, for a continent as connected as Africa is, crypto offers the opportunity to make transactions and exchanges across borders and at lower fees.
Finally, crypto offers the opportunity for Africans to participate in global economies at a greater level, with the decentralised nature of assets providing greater access to assets and opportunities outside of Africa.
With better access to technology, and greater education and technology literacy, Africa will continue to grow as a hub for crypto interest and investment.