Nigeria and South Africa lead global cryptocurrency ownership with rates of 73% and 68%, respectively, driven by practical use cases. Sub-Saharan Africa also excels in DeFi adoption due to low bank account ownership. Despite accounting for just 2.7% of global transaction volumes, the region experienced significant growth with $125 billion in on-chain transactions from July 2023 to June 2024. Crypto awareness is nearly universal in both countries, highlighting a strong potential for future adoption.
A recent report by Consensys has positioned Nigeria and South Africa as frontrunners in global cryptocurrency ownership, with respective ownership rates of 73% and 68%. This surge in adoption is largely attributed to practical applications of cryptocurrency, including its utility in inflation hedging, business transactions, and small retail activities throughout the region. Supporting these findings, Chainalysis has highlighted that sub-Saharan Africa is leading the world in decentralized finance (DeFi) adoption, driven predominantly by the low rates of traditional bank account ownership.
Despite the promising growth in cryptocurrency utilization across Africa, the continent still accounts for only 2.7% of the global transaction volumes, which is a reflection of its smaller economic scale. However, notable advancements have occurred, as evidenced by the $125 billion received in on-chain value from July 2023 to June 2024. Furthermore, awareness of cryptocurrencies is nearly universal in Nigeria and South Africa, where familiarity rates stand at 99% and 98%, respectively.
The context of increasing cryptocurrency adoption in Africa can be traced to the region’s unique economic challenges, characterized by high inflation and limited access to traditional banking services. Many individuals are turning to cryptocurrency as a viable alternative for safeguarding their assets against inflation while facilitating everyday transactions. The rise of decentralized financial systems has also presented new opportunities for financial inclusion, propelling interest and engagement in these financial technologies.
In summary, the Consensys report demonstrates a significant trend in cryptocurrency ownership within Nigeria and South Africa, marking them as leaders in this burgeoning market. The practical use cases for cryptocurrencies, coupled with the pressing economic conditions, are driving notable adoption rates. Even though Africa represents a small fraction of overall global transaction volumes, the region has illustrated remarkable growth in crypto engagement, with overwhelming awareness among its population, signaling a promising future for cryptocurrency on the continent.
Original Source: iafrica.com
