A recent Consensys report reveals that Nigeria and South Africa rank among the top countries in the world for cryptocurrency ownership, with respective rates of 73% and 68%. The report highlights that practical applications such as inflation hedging and business payments are driving this adoption. Notably, Africa’s share of global crypto transaction volumes remains low at 2.7%, despite substantial growth in on-chain value and high awareness rates of cryptocurrencies among the population.
According to a recent report by Consensys, Nigeria and South Africa have emerged as global leaders in cryptocurrency ownership, with rates of 73% and 68%, respectively. This remarkable adoption is attributed to practical applications of cryptocurrency within the region, which include inflation hedging, facilitating business payments, and enabling small retail transactions. Furthermore, this trend aligns with findings from Chainalysis, which state that sub-Saharan Africa is at the forefront of decentralized finance (DeFi) adoption, largely due to the low rates of traditional banking account ownership. Despite the burgeoning adoption of digital currencies in Africa, the continent accounts for a mere 2.7% of the global transaction volumes, indicative of its comparatively smaller economic framework. Nevertheless, the region experienced substantial growth in cryptocurrency utilization, with reports indicating an impressive $125 billion in on-chain value acquired between July 2023 and June 2024. The Consensys report further highlights an overwhelming familiarity with cryptocurrency among the population, noting that 99% of Nigerians and 98% of South Africans claim to be aware of cryptocurrencies.
Cryptocurrency has become increasingly prevalent in various regions around the globe, with Africa witnessing significant advancements in the adoption of digital currencies. The recent report by Consensys showcases Nigeria and South Africa’s strong positions in cryptocurrency ownership, a trend that is driven by unique economic factors within these countries. High inflation rates and limited access to traditional banking services have prompted individuals and businesses to turn to cryptocurrencies for financial solutions. Furthermore, the rise of decentralized finance (DeFi) offers new opportunities for financial inclusion in a region characterized by low banking penetration.
In conclusion, the rise of cryptocurrency ownership in Nigeria and South Africa marks a significant milestone in the African financial landscape. Practical uses of cryptocurrency, coupled with a high level of market awareness, underscore the continent’s potential to leverage digital currencies as viable financial instruments. While Africa’s contribution to global transaction volumes remains relatively low, the dramatic increase in on-chain value within the region indicates robust growth and emerging opportunities in the cryptocurrency space. The continued focus on financial mechanisms such as DeFi will likely shape the future of cryptocurrency in Africa.
Original Source: iafrica.com
