Over 2,670% increase in crypto transactions in selected African countries

The African continent continues to show signs of exponential growth in terms of Bitcoin adoption and usage. A recent KuCoin report indicates an increase of over 2670% in some African countries.

Growth led by French-speaking countries

The latest data collected by KuCoin reveals that crypto transactions have increased by 1,250-2,670% over the past year in predominantly French-speaking countries such as Senegal or Ivory Coast. These countries have partnered with international organizations to allocate significant sums to the development of digital ecosystems.

As a result, international funds flow into these countries, creating new jobs and gradually increasing the level of technological literacy of the local population.

Such growth momentum is also linked to the low values ​​that have been observed in previous periods, since the amount of crypto transactions in Africa constitutes 2.8% of global volumes.

The average number of monthly transactions across African countries recorded an increase of 1,386.7% between January 2021 and January 2022. The number of users also increased significantly, posting a peak of 2,467.2 % over the same period. However, the average amount per transaction has decreased, indicating that the adoption of this technology is not only for large transfers, but also for small payments.

More than 88.5% of cryptocurrency transactions made by Africans are cross-border transfers. The reason is low fees. In many cases, users pay less than 0.01% of the overall transferred transaction amount in cryptocurrencies. This simultaneously solves several issues related to the restrictions on cryptocurrency transactions that are in place in countries like Nigeria and Kenya.

Cryptocurrencies, a tool against inflation

Many users and investors see cryptocurrency as a way to circumvent the hypervolatility of certain national currencies, or even in extreme cases, the collapse of their currencies. Or simply fight against the risk of rising inflation due to the conflict in Ukraine.

In addition, inflation remains particularly high in some African countries and stablecoins become very practical tools to avoid seeing the value of your investment melt away. Indeed, the ability to quickly transfer investments from one asset to another mitigates the risk of depreciation of savings. Not all countries are as inflationary as Sudan (260%) or Ethiopia (66%). Nevertheless, the desire to preserve purchasing power, even under 6.4% inflation (Tunisia), is natural for those seeking to preserve the value of their savings.

African investors are increasingly educated on the blockchain

Close up of an African boy's hands holding a Bitcoin and Ethereum coin and a 5000 CFA note.  Digital payments in Africa concept

Thanks to the multiplication of free online courses on the use of cryptocurrencies and the blockchain, whether via Binance, Coinbase (which offers interesting financial compensation) or even KuCoin, it is more and more accessible for a curious public. to learn about the different cryptocurrencies, the techniques of tradethe use of the blockchain and others.

KuCoin is also actively conducting a series of blockchain and cryptocurrency promotions in Africa. She not only launched a university visit-type educational promotion from Nigeria in early 2022, but also vigorously expanded her influence in Africa on the Internet to help African people get more information and education. with multiple benefits. Learn all about KuCoin by clicking here.

A bright future for cryptocurrencies in Africa?

Nourou, founder of Bitcoin Senegal, is confident that the one thousand percent growth rates for bitcoin (BTC) adoption “will continue for years to come. »

Look at how cars, cellphones and consumer electronics have taken off on the continent. Africa is a continent where lightning speed progression and adoption is common. »

The CEO of KuCoin added a note of caution about the staggering growth levels:

This growth rate may depend on the position of local policy makers and separate officials on cryptocurrencies. Nonetheless, I believe a bright future for digital currency in Africa is inevitable.. »

The African continent, and its ever younger and growing population, remains held back by complicated regulations on currencies and cryptocurrencies. However, it would not be surprising to see very rapid changes taking place thanks to the will of the population and the growing usefulness of cryptocurrencies in Africa.

Receive a summary of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!

User Picture

Alexis Patin

Observer of the social, economic and financial revolution driven by cryptocurrencies, defi and metaverses.

Leave a Comment