According to a recent KuCoin report (Hong Kong cryptocurrency exchange launched in September 2017), the number of cryptocurrency transactions has increased by 2670% in some African countries.

The introduction of cryptocurrencies into everyday life in Africa is in full swing, despite socio-economic factors and obstacles. The rapid growth trend and a sharp influx of new users is associated with a low base, which was observed in previous periods. At the same time, as of the end of 2021, the number of cryptocurrency transactions in Africa is approximately 2.8% of global volumes.

Johnny Lyu, CEO of the KuCoin exchange, noted that “digital asset adoption in Africa will continue to grow exponentially.” And also added that “African countries have the highest level of cryptocurrency adoption in the world, outpacing even the largest regions in terms of growth: the United States, Europe and Asia.”

Nourou, the founder of Bitcoin Senegal, is convinced that the 1000% growth rate of Bitcoin adoption “will continue in the coming years.”

“Look how automobiles, mobile phones and consumer electronics came to the continent. Africa is a continent where lightning-fast development and acceptance is common.”

The report states that “more than 88.5% of cryptocurrency transactions made by Africans are cross-border transfers.” Low commissions allow significant savings because “users pay less than 0.01% of the total transaction amount transferred in cryptocurrencies.”

The high rate of inflation and the growing trend of smartphone penetration on the continent effectively allows everyone to become their own bank. Africa also has a young and advanced population that is used to digital currencies. Africa, almost from the first days of the crypto industry, has been considered a reliable testing ground for problems that can be solved with the help of cryptocurrencies.

Liu also warned against jumping to conclusions about the staggering levels of growth:

“These growth rates may depend both on local politicians and on the positions of individual officials regarding cryptocurrencies. However, I believe that a promising future for digital money in Africa is inevitable.”

For example, in Central and West Africa, the spread of BTC is growing against the backdrop of distrust and discomfort in using the local currency, which is common for several African countries – the CFA franc. Many analysts, assessing the state of cryptocurrency adoption in Africa, note that “the economic opportunities provided by the region are enormous.”

The same Liu believes that Africa is in an interesting position, given that the combination of “rising inflation, high unemployment, poor access to banking services and huge fees for international payments” creates an environment conducive to cryptocurrency adoption.

“The financial challenges facing the region are forcing people to look for new tools and technologies that can give them some of the economic freedom they currently lack,” he concludes.

In the long term, Africa has many advantages “which cannot but contribute to the widespread use of digital assets among local residents.” The median age in Africa is very low – just 19 years old – and more than 40% of the population lives in cities.

“Another positive development is the growing technological awareness of the local population. At the same time, many young people are studying programming and Internet technologies,” the report says.

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