Binance CEO, Changpeng Zhao, revealed during his recent trip to Africa, Ivory Coast to be precise, that Africa is ready for crypto adoption. According to him, Blockchain offers a level of affordability.
During his trip to the French-speaking country, he announced Binance’s partnership with Jokkolabs, which he revealed was Africa’s first social impact center. He revealed that with this partnership, Binance will launch a blockchain outreach and education program in Francophone Africa.
Such a partnership will further strengthen the region as a hub for blockchain innovation and entrepreneurship. There is no doubt that there is an increasing rate of crypto adoption in the African region with a 1,200% increase in crypto volume received between 2020 and 2021, which has accelerated the adoption of digital assets in Africa making it the fastest adoption is rate in the world.
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a UN To search revealed that Kenya was the top country in the African region when it came to crypto adoption. About 8.5% of the Kenyan population owns digital assets, which amounts to about 4.25 million people.
Africa is projected to accumulate $105.6 billion worth of cryptocurrencies in the forecast for the year ending June 2021, thanks to peer-to-peer (P2P) transactions in key growth markets.
The African region is considered to be the region with the highest utilization rate of P2P platforms as they represent 1.2% of all African transaction volume. The continent registered a transaction volume of $17 million in May 2021.
Cryptocurrency growth in the African region is picking up significantly, with some countries on the continent even planning to launch their own central bank-backed virtual currencies. A case study in the Central African Republic (CAR) that approved Bitcoin as legal tender.
Countries such as Morocco, Tunisia, Kenya, Madagascar, etc. are also still in the research phase. Africa’s massive adoption of crypto comes as no surprise at all, as people in these African countries have always been looking for alternatives to the region’s weak financial infrastructure.
Peer-to-peer payments, remittances and savings are considered to be the main drivers of adoption by residents. Many people in the African region see cryptocurrencies as an escape from devalued currencies, government policies and inflation.
In addition, the high cost of sending cash from abroad is a major motivating factor for the growing adoption of virtual currencies in the African continent.
Few other factors influencing the adoption of cryptocurrencies in Africa
- Fiat currency devaluation: Due to the instability of fiat currencies and a lack of trust in economic systems, most Africans financially resort to cryptocurrencies to preserve their savings.
- International exchange: Since cryptocurrencies are widely accepted around the world, they are easier to use in international trade. Most African importers and exporters have confirmed the advantages of cryptocurrencies in international trade. The use of cryptography in international trade has helped to shorten the time frame as transactions can now be made instantly.
- User Education: According to Wikipedia, young people represent 60% of the African population. Young Africans are eager to find new ways to improve their standard of living and earn money.
Cryptocurrency adoption in Africa continues to grow at a rapid pace, addressing so many challenges that a huge surge in crypto adoption is expected in the coming years.