Bitcoin conquering Africa
Bitcoin conquering Africa
Bitcoin

Bitcoin conquering Africa

By Vincenzo Cacioppoli - 11 Jul 2022

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More and more African countries see Bitcoin as a tool to combat rising inflation.

Africa and Bitcoin together against inflation

According to a recent report released in mid-June by Standard Bank, a major South African banking institution, between July 2020 and June 2021, cryptocurrency adoption on the continent increased by 1,200%

In the ranking of the Global Crypto Adoption Index by the company Chainalysis, which precisely measures the degree of crypto adoption in different countries, the top ten places include three African states, Nigeria, Kenya, and Togo. South Africa and Tanzania, on the other hand, rank 16th and 20th, respectively.

The wide spread of Bitcoin and its “siblings” is undoubtedly related to both the very high inflation rates in almost the entire African continent and the dependence on foreign remittances. In addition, the African continent has the highest percentage of people without a bank account, and digital currencies make it possible to address this lack.

According to recent research by analytics firm Statista, Nigeria emerged as the most cryptocurrency-friendly country in the world, considering that about one-third of its inhabitants reported using or holding cryptocurrencies in their wallets.

On April 27, the Central African Republic, one of the world’s poorest countries, became the second state to adopt Bitcoin as legal tender, despite the IMF trying hard to oppose this decision. The state’s new cryptocurrency, Sango Coin, was also launched on July 4.

South Africa and cryptocurrencies

South Africa is one of the major countries to adopt Bitcoin and crypto in general

South Africa is integrating cryptocurrencies into its economy and community by building regulatory frameworks, developing CBDCs, and actively participating in blockchain technology. Trading and holding cryptocurrencies in South Africa is legal, as are cryptocurrency activities.

Also, Chainalysis found that between July 2020 and June 2021, Africans received $105.6 billion worth of cryptocurrency payments. 

But the trend still seems to be on the rise in the new year as well. An April 2022 report by the Kucoin exchange estimates that from April 2021 to March 2022, cryptocurrency transactions on the African continent increased by 2.670%. According to the research, more than 88.5% of African cryptocurrency transactions are cross-border transfers. The reason is low fees. In many cases, users pay less than 0.01% of the total amount of the transaction transferred in cryptocurrency.

Johnny Lyu, CEO of KuCoin, states that:

“The adoption of digital assets in Africa will continue to grow exponentially. African countries have the highest rate of cryptocurrency adoption in the world, surpassing even larger regions such as the U.S. States, Europe, and Asia.”

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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