A recent Consensys report indicates that Nigeria and South Africa lead the world in cryptocurrency ownership, achieving rates of 73% and 68%, respectively. Practical applications such as inflation hedging and business payments contribute to this trend. While Africa’s transaction volume constitutes only 2.7% of the global total, the region received $125 billion in on-chain value in a year. Awareness of cryptocurrency is nearly universal in these nations, fostering further growth.
According to a recent report by Consensys, Nigeria and South Africa have emerged as the leading countries globally for cryptocurrency ownership, boasting ownership rates of 73% and 68%, respectively. The driving forces behind this adoption include practical applications of cryptocurrency for inflation hedging, business transactions, and small retail purchases. Additionally, a report by Chainalysis supports this finding, highlighting that sub-Saharan Africa is at the forefront of decentralized finance (DeFi) adoption, primarily due to the low levels of traditional bank account ownership in the region. Despite this impressive growth in cryptocurrency ownership, Africa as a whole accounts for only 2.7% of global transaction volumes, indicative of the continent’s smaller economic footprint. Nonetheless, Africa saw a remarkable increase in cryptocurrency activity, with an estimated $125 billion in on-chain value received between July 2023 and June 2024. Furthermore, the Consensys report indicates near-total awareness of cryptocurrency within Nigeria and South Africa, with 99% and 98% of respondents, respectively, expressing familiarity with the concept.
The surge in cryptocurrency ownership in Nigeria and South Africa reflects the increasing adaptation of digital currencies in Africa, where traditional banking services are often limited. This adaptation is partly fueled by the need for alternative financial solutions in regions experiencing economic volatility and inflation. The report by Consensys ties into broader trends identified by Chainalysis, which indicates that decentralized financial systems are gaining traction in sub-Saharan Africa as individuals seek ways to manage their finances outside conventional banking structures. Over the past year, Africa has witnessed substantial financial activity through cryptocurrencies, even as it remains a small fraction of the global market.
In summary, Nigeria and South Africa are emerging leaders in global cryptocurrency ownership, with significant adoption rates spurred by practical use cases. Despite a relatively small share of global transaction volumes, the region has shown remarkable growth in cryptocurrency activity and widespread awareness. The increasing use of digital currencies offers a promising glimpse into the future of finance in Africa, paving the way for greater economic inclusion and innovative financial solutions.
Original Source: iafrica.com
