Chainalysis reports: Africa has 1,200% growth in crypto adoption
Resolving some economic issues in the continent, cryptocurrencies have been increasing exponentially
Africa has seen a 1,200% increase in crypto adoption just in the last year. That was the result announced by Chainalysis, a blockchain data platform, as a preview of the latest research that will be released this September.
According to Chainalysis, Kenya, Nigeria, South Africa and Tanzania have a big part in this growth and they all rank in the top 20 of the Global Crypto Adoption Index. The platform also states that, even though the African continent has the smallest cryptocurrency economy than any region researched, it is also one of the most dynamic and exciting to follow up.
For the blockchain data platform, the main reason behind the massive adoption of crypto in Africa is related to P2P technology of transactions. Countries like Kenya and Nigeria suffer a lot when it comes to sending money to crypto businesses provoked by local laws and banking policies.
Similarly, P2P platforms facilitate remittances by allowing people to transfer money from one country to another without relying on government regulations, the amount of which can often be very restricted.
As one last, but definitely not least, motive is the use of digital assets to escape the local currencies devaluation and its consequences in people’s financial lives.
According to Adedeji Owonibi, CEO and founder of a Nigerian blockchain consultancy company Convexity and the associated 1st cryptocurrency community Hub CBHUB, the usage of cryptos to avoid devaluation consequences also varies depending on socioeconomic groups.
“I hear many young people say, ‘Don’t rely on the naira (Nigeria’s currency), it’s too unstable, put your wealth in stablecoins instead. But that’s the middle class move. Richer people who want to make money are going for Bitcoin and other more speculative cryptocurrencies.”
Chainalysis says that since the middle class is growing in countries like Nigeria, it’ll be interesting to follow the next chapters of this development.
Klever has been reporting about the African countries growth in cryptocurrencies for a while. With the help of our writer James Enajite, many articles have been produced and published in our News section regarding the continent’s evolution in the segment.
Here are some of them:
Crypto in West vs East Africa