South Africa Leads Crypto Revolution in Africa – Challenges Spur and Slow Adoption 1

South Africa Leads Crypto Revolution in Africa – Challenges Spur and Slow Adoption 2

Africans rank atop global cryptocurrency ownership rates, according to a new report by Arcade Research. South Africa ranks third globally with 13% of its internet users owning or using cryptocurrencies, while 11% of connected Nigerians own cryptocurrencies in the fifth-placed populous West African country.

Uganda, Nigeria, South Africa, Kenya, and Ghana are listed in the report among the top 10 countries where “cryptocurrency” is most searched on Google. Economic challenges work both ways, as the digital divide slows the adoption of cryptocurrency while high financial fees make virtual currencies an attractive alternative.

Africa also has some of the world’s most inflationary economies where fiscal indiscipline and controversial monetary policies sometimes erode citizens’ savings overnight. Apart from governments’ heavy hand, external factors such as sanctions and conflict also threaten savings, making cryptocurrency a less exposed investment.

Sub-Saharan Africa records $48 billion remittances annually but transaction fees go as high as 9%, while some mobile payment transfer services charge around 11%. Cryptocurrency use is also a way to undercut the disadvantages of centralization while eliminating high remittances cost.

Arcane Research notes lack of infrastructures such as crypto mining operations, supporting merchants, smartphone penetration, and internet connectivity as slowing the uptake of cryptocurrencies. With rural-majority populations in some countries, significant swaths of the continent are not electrified, limiting the reach of bitcoin and other digital assets. .

According to the report, lack of policy clarity, with close to 60% of African governments yet to announce their positions on cryptocurrencies, slows down adoption.

“Africa is one of, if not the most promising region for the adoption of cryptocurrencies,” said the report.

“This is due to its unique combination of economic and demographic trends. While the overall adoption is relatively low, the potential is enormous, the growth is rapid, and the development is likely to become defining for the cryptocurrency industry going forward,” it added.

What do you think about cryptocurrency adoption in Africa? Let us know in the comments section below.

Tags in this story
Africa, Arcane Research, BCH, Bitcoin, bitcoin cash, BTC, Crypto Adoption, Cryptocurrencies, Fiat, financial inclusion, Ghana, Kenya, Nigeria, remittances, South Africa, Uganda

Image Credits: Shutterstock, Pixabay, Wiki Commons

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 66,185.00
ethereum
Ethereum (ETH) $ 4,302.36
binance-coin
Binance Coin (BNB) $ 495.94
cardano
Cardano (ADA) $ 2.29
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 191.67
xrp
XRP (XRP) $ 1.16
polkadot
Polkadot (DOT) $ 44.34
dogecoin
Dogecoin (DOGE) $ 0.255877
usd-coin
USD Coin (USDC) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 66,185.00
ethereumEthereum (ETH)
$ 4,302.36
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 651.37
litecoinLitecoin (LTC)
$ 210.12
bitcoinBitcoin (BTC)
56.804,93
ethereumEthereum (ETH)
3.692,61
tetherTether (USDT)
0,858275
bitcoin-cashBitcoin Cash (BCH)
559,05
litecoinLitecoin (LTC)
180,34
bitcoinBitcoin (BTC)
48,028.80
ethereumEthereum (ETH)
3,122.12
tetherTether (USDT)
0.725675
bitcoin-cashBitcoin Cash (BCH)
472.68
litecoinLitecoin (LTC)
152.48

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin65,798 0.83 % 3.08 % 14.46 %
Ethereum4,310.7 0.43 % 11.76 % 19.55 %
Binance Coin493.51 0.58 % 1.62 % 5.10 %
Cardano2.290 0.19 % 7.46 % 4.42 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana191.40 0.08 % 20.99 % 28.99 %
XRP1.150 0.24 % 4.27 % 2.32 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2567 0.42 % 5.14 % 10.27 %
USD Coin1.000 0.14 % 0.20 % 0.17 %

bitcoin
Bitcoin (BTC) $ 66,185.00
ethereum
Ethereum (ETH) $ 4,302.36
binance-coin
Binance Coin (BNB) $ 495.94
cardano
Cardano (ADA) $ 2.29
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 191.67
xrp
XRP (XRP) $ 1.16
polkadot
Polkadot (DOT) $ 44.34
dogecoin
Dogecoin (DOGE) $ 0.255877
usd-coin
USD Coin (USDC) $ 1.00