Cryptocurrency is on a high rise in Africa, Kukoin says

Cryptocurrency has been gaining exponential ground, especially in Africa and the rate at which crypto users are growing is extraordinary. Africans didn't hesitate to make use of this great asset.

A statement by the cryptocurrency exchange, Kukoin reveals that crypto transactions increased by over 2,500 in 2021. The number of crypto transaction users in Africa is approximately 2.8 of global volumes.

The statement claims that both private and public organizations are improving their investment in research and development (R$D). ”Local public and private enterprises are increasing their investments in R&D while creating the necessary bedrock for the establishment of the next generation of information and communication technologies. Most African countries have adopted bold policies aimed at building economies centered around modern technologies, including blockchain and cryptocurrencies.”

The statement further read that “The possibility of quickly transferring investments across assets mitigates the chance of savings depreciation. Not all countries are as inflationary as those of Sudan (260%) or Ethiopia (66%). Still, the desire to preserve the purchasing power, even under 6.4% inflation (Tunisia), is natural for those seeking to preserve the value of their savings.”

However, the statistics from the statement show that more than 88.5% of crypto transactions made by Africans are cross-border transfers, and they swerve to cryptocurrencies due to low transaction fees. 

It equally says that “In many cases, users pay less than 0.01% of the overall amount of the transaction transferred in cryptocurrencies. This simultaneously solves several issues associated with crypto transaction restrictions that are in place in countries like Nigeria and Kenya. End-users of services can conduct transactions in a matter of milliseconds without fear of temporary freezes of transferred funds, as is often the case with conventional payment systems.”

Statistics show that Cape Town and Lagos are the self-starters of the digitization process in Africa. 

 Reports shared by the Founder portray that Cairo, Cape Town, and Lagos can be considered the engines of the digitization process in the region. Kenya is a separate area of focus in East Africa, with the number of cryptocurrency transactions in Nairobi - its capital - being 64% higher than in the rest of the region.

The founder of Bitcoin is sure that the thousand percent growth rates of Bitcoin will continue in the coming years. “Take a look at how cars, mobile phones, and consumer electronics took off on the continent. Africa is a continent where lightning-fast progression and adoption is common,” he said. 

Here is the link to Kukoin website. 

The statement ended by stating that  “With the proper legislative attention and acceptance of the need for such digital technologies by the authorities, crypto platforms could be an effective steppingstone for the overall growth of Africa's GDP.”

Note that Crypto Currencies are being prohibited by regulations in Nigeria and some other African countries. Even with the regulations, it does not seem to be slowing down. Hopefully, Governments in Africa would lessen their stringent regulations on it.