Despite some socio-economic and political barriers, cryptocurrency use is on the rise in Africa.
It s been reported that the number of people in Africa turning to crypto has climbed dramatically, with a , . percent spike between and – part of a set of data showing the growing usage of cryptocurrencies in Africa.
This exponential rise in cryptocurrency adoption throughout the African continent has been driven by several factors on the ground which has made digital currency a more viable option for individuals and business owners in Africa.
A push against inflationMore and more people in countries with high rates of inflation and devaluation are turning to digital currencies such as and as a way to protect themselves against the rising cost of living.
Sudan and Ethiopia had the highest inflation rates in as a result of these countries’ numerous periods of political unrest throughout the year. Cryptocurrency was a popular choice for Africans even in countries where inflation was less than %, such as Algeria.
Although the average amount of money transferred has decreased over the last year, the research sees this as an indication that adoption is occurring for little payments as well as large ones.
Three major cities in Africa are considered as driving this growth: Cairo, Cape Town, and Lagos. Elsewhere, with % more crypto transactions than the rest of East Africa, Kenya stands out as the region s growth leader.The cost-effectiveness of fintechFintech has attracted a large number of cryptocurrency-driven consumers because of the inexpensive fees. Users often pay less than .% of the total amount of the cryptocurrency transaction.
Africa is in a unique position to benefit from cryptocurrency adoption due to a number of factors, including rising inflation, significant unemployment, limited access to banking services, and exorbitant fees for foreign transfers.
A lack of economic freedom in the region is prompting individuals to explore new instruments and technology to help alleviate their situation.
Digital assets will become more widely used by African citizens in the long run because of the continent s many advantages. Over % of Africans live in cities, while the continent has a low median age of years.
AS such, an encouraging development is the local population s growing interest in computer programming and the internet.
This tech-savvy generation is turning to cryptocurrency and its decentralized platforms to further their economic aspirations, foster entrepreneurial start-ups, and grow the export markets to regions in which it was previously more costly to enter using fiat transactions.Final ThoughtsAfrica has a young, digitally savvy populace that is well-versed in digital currencies, a trend that is bolstered by rising inflation and widespread smartphone use. The challenges that cryptocurrencies are attempting to tackle can be tested in Africa.
Digital assets will become more widely used in Africa in the long term because of their many advantages, and customers are increasingly using electronic payment methods like Lipa Na M-PESA, credit cards, and payment gateways to pay for goods and services using digital currency.
