Number of African Cryptocurrency Users Grows Nearly 2,500% – Featured Bitcoin News
The number of cryptocurrency users in Africa increased by almost 2,500% between January 2021 and January 2022, while the average number of monthly transactions increased by 1,400%, according to a new report from Kucoin.
Widespread adoption of cryptocurrencies
According to a new report from crypto exchange Kucoin, the number of cryptocurrency users in Africa increased by almost 2,500% between January 2021 and January 2022. During the same period, the average number of transactions also increased by almost 1,400%, according to the report. added.
Although cryptocurrency transactions from the African continent represent 2.8% of global volumes, the observed decrease in the average amount per transaction – according to the Kucoin report – suggests that there are more small payments or transfers now than there were none during the corresponding period last year.
As explained in a report that was shared with Bitcoin.com News, the observed growth in the use of cryptocurrencies by African users may be due to the continent’s growing talent for embracing new technologies. The report singles out Cairo, Cape Town and Lagos as the top cities fueling the digitization process on the continent. In Nairobi, the capital of Kenya, the number of cryptocurrency transactions is 64% higher than in the rest of the region, according to the report.
The Kucoin report also suggests that the growth in the number of crypto users on the continent is linked to factors such as inflation or exchange rate fluctuations. However, it also indicates that even in countries with lower inflation rates, savvy Africans still prefer to protect their savings with cryptocurrencies.
Educate the masses
The other factor cited as contributing to the increase in the number of cryptocurrency users in Africa is the ongoing campaign to educate the masses about emerging financial technologies. These education campaigns are undertaken by independent advocates. Cryptocurrency exchanges like Kucoin are increasingly involved in mass education efforts.
Explaining how Kucoin is working to ensure that more people on the mainland are aware of cryptocurrencies and blockchain, the report states:
Not only does he have [Kucoin] launched a university tour-style education promotion from Nigeria in early 2022, but it has also vigorously expanded its influence in Africa on the Internet to help Africans get more information and education with multiple benefits.
Meanwhile, the report claims that 88.5% of cryptocurrency transactions made by African users are actually cross-border transfers. The low fees paid by users – often around 0.01% of the total transaction amount transferred – would make cryptocurrencies a much more convenient way to transfer funds across borders.
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.