The African continent is on the cusp of a cryptocurrency revolution. And it’s not just hyped cryptocurrency news: according to a Chainalysis report, Africans received cryptocurrency payments worth an astounding $105.6 billion in between June 2021 and July 2021.
That’s encouraging news for investors and traders who are looking to leverage the potential benefits of digital money in Africa. Here’s everything you need to know about how crypto adoption is growing across the continent, why it matters, and what’s next for this emerging market opportunity.
7.2 million Africans are cryptocurrency investors.
According to a survey posted on major cryptocurrency websites, 22% of the adult population in South Africa has invested in cryptocurrency. 65% of them consider crypto as the future of finance.
The same survey discovered that these South African crypto investors see digital assets as a more stable means of protecting their savings.
Remittances are driving the acceptance of crypto in Africa.
Remittance, one of the biggest industries in Africa, is driving the adoption of crypto. Africans living abroad send more than $49 billion back home each year and across many countries on the continent remittances are a large part of their GDP (total value).
Cryptocurrency can help reduce costs in this area because it’s cheaper to send money across borders using cryptocurrency than traditional banking systems like Western Union or MoneyGram. And because it’s faster and easier for families to receive money, they don’t have to wait days for funds to be transferred before making purchases or paying bills.
Unbanked’ Africans are turning to crypto for job opportunities and financial inclusion.
As the crypto industry grows, so too does its potential for improving the lives of Africans. Crypto is a way for Africans to participate in the global economy and get their money out of their country at a time when they are struggling to find jobs.
- For example, Zimbabwe has been suffering from hyperinflation since 2008 and its currency is almost worthless.
- People there are using Bitcoin as a way to buy food and other basic necessities from outside Zimbabwe.
- Even though cryptocurrency isn’t legal tender in Zimbabwe, people trust its value more than their own currency because it’s not being printed at will by corrupt leaders who devalue it with inflationary policies.
Cryptocurrency also offers financial inclusion for people without bank accounts or access to traditional financial services such as credit cards or loans (this is known as ‘the unbanked’).
- In the sub-saharan Africa alone, there are over 350 million unbanked adults who do not have any type of formal banking relationship – this means that they cannot send money abroad or participate fully in global trade.
- They don’t have credit card numbers or bank accounts where funds can be sent easily across borders via ACH transfers (Automated Clearing House) or SWIFT (Society for Worldwide Interbank Financial Telecommunication).
The technology behind cryptocurrencies could help solve this problem by providing a way for Africans to send money abroad easily and cheaply.
This is because it enables cross border payments that are faster, cheaper and more transparent than traditional methods like bank transfers or credit cards.
The challenge is that many people still don’t have access to cryptocurrency exchanges where they can exchange fiat currency for Bitcoin or other cryptocurrency.
We Can Help You Invest in Crypto From Anywhere in the World
At Key Coin Assets, our services go beyond cryptocurrency asset management in the UK. We can also help you invest in cryptocurrency and the blockchain whether you’re in the UK, Africa, Asia, US – anywhere on the planet.
Here’s just one of the ways we can help you build your wealth.
For questions and advice, contact us today!