The cryptocurrency market in Africa has grown strongly since last year and has a larger share of total retail trade volume than the global average, as reported by digital analytics company Chainalysis.

The source: Chain analysis

In particular, the crypto market in Africa grew by more than 1,200% between July 2020 and June 2021, with high adoption rates in Kenya, South Africa, Nigeria and Tanzania. The popularity of P2P platforms could be one of the factors leading to greater adoption of crypto in the region, as some countries have restricted or banned sending money to exchanges through local banks.

Source: chain analysis

Chainalysis says the entire continent received $ 105.6 billion in crypto during the aforementioned period. A share of the total trading volume of the market comes from “retail-scale transfers” – more than in any other region in the world – around 7% and is above the global average of 5.5%. Additionally, P2P platforms – including Paxful and LocalBitcoins – account for 1.2% of all crypto transactions in Africa. Paxful Co-Founder and COO, Artur Schaback, said:

“In many of these frontier markets, people can’t send money from a bank account to a centralized exchange, so they prefer P2P. Cryptocurrency products are becoming more and more user-friendly, so they can attract more people to the crypto economy and help them realize that crypto is faster, cheaper and more convenient. “

Source: chain analysis

Government regulation of transfer limits abroad is one of the driving forces behind the introduction of cryptocurrencies in the region. Many users in Africa may also be using cryptocurrencies as a faster, cheaper way to pay for international trade transactions and get savings to avoid possible volatility.

Nigeria plans to test a central bank digital currency, eNaira, starting October 1st. South Africa is also joining a joint initiative with Australia, Singapore and Malaysia to bring a digital currency to market.

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Annie

According to Cointelegraph

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