The Sub-sahara Africa crypto space has proven different from other cryptocurrency ecosystems across the globe regarding crypto adoption. Despite the relatively low transaction volume compared to other regions, the region’s crypto ecosystem is reportedly solid.
According to reports, the region records the highest number of cryptocurrency transactions via P2P. According to the reports, there is massive adoption of P2P transactions below $10,000. The adoption of P2P transactions has significantly boosted the overall crypto adoption in Sub-Saharan Africa, and the governments are undoubtedly part of the reason.
For instance, countries like Kenya and Nigeria are among the leaders in crypto adoption within the sub-Saharan region. In these countries, crypto enthusiasts have embraced P2P transactions as strict regulations are in place to prevent the direct purchase of digital assets using the Kenyan Shilling and Nigerian Naira, respectively.
What makes the African crypto space unique?
The African crypto space is embracing cryptocurrencies for several reasons. One major challenge is the volatile value of local African currencies. A report placed Kenya and Nigeria among the top 20 countries with high crypto adoption globally. The presence of these two countries could be explained as follows.
The local currencies have recorded a significant decline in value against the American dollar and other foreign currencies such as the Euro and British pound. However, the decline in exchange rates does not directly affect crypto holders, which could be a reason for the massive adoption of cryptocurrencies within the region.
Additionally, the governments have been skeptical about allowing crypto adoption within the region. In Kenya, for instance, purchasing digital assets using fiat directly from your bank accounts is nearly impossible. The strict regulations have swayed crypto users to depend on P2P transactions, which have continued to grow and strengthen the entire global crypto ecosystem.
Also, there is a general reliance on outward remittances from other regions, including the US and Europe. These remittances are often sent in crypto to avoid delays and friction that could be experienced when using Fiat transactions. Similarly, many African firms have continued to adopt USDT and other stablecoins as a means to make faster payments to merchants abroad.
The future of crypto in Africa
The African market is young and quickly developing. It is an essential region for crypto projects and crypto adoption on a global scale. Many African countries would rely on cryptocurrencies to make transactions across the globe with limited regulations. FIAT transactions are often slow and require paperwork, physical presence at local banks, and rigorous KYC processes that are often cumbersome.
The adoption of blockchain and cryptocurrency generally allows users to receive and make payments swiftly, with no paperwork. Essentially, most African governments have considered incorporating cryptocurrencies within their central banks to help break into the industry as demand continues to increase.
Ideally, the high rate of development within African countries could lead to a more elaborate crypto ecosystem in the near future. Since the market is more open to new concepts and ideas than the relatively reserved western market, the African continent could easily champion the adoption of cryptocurrencies within governments and daily life.
Source: Crypto News