African cryptocurrency users will increase by 2,500% in 2021

A recent report by KuCoin shows that the number of cryptocurrency transactions has increased by 2,670% in some African countries.

Despite socioeconomic factors and headwinds, cryptocurrency adoption in Africa is rising. A positive report from crypto exchange KuCoin shows that cryptocurrency trading volume will grow by as much as 2,670% in 2022.

This is an astonishing growth trend, with the steep influx associated with low values ​​in previous periods. The number of cryptocurrency transactions in Africa accounts for approximately 2.8% of the global transaction volume.

Johnny Lyu, CEO of KuCoin, told Cointelegraph that “the adoption of digital assets in Africa will continue to grow exponentially,” adding that “African countries have the highest cryptocurrency adoption rates in the world, surpassing even the U.S., Europe and Asia the largest area."

Nourou, founder of Bitcoin Senegal, believes that the growth rate of Bitcoin (BTC) adoption “will continue for years to come.”

"Look at the way cars, mobile phones, and consumer electronics have taken off on the continent. Africa is a continent of lightning-fast progress and widespread adoption."

The report specifically mentions that “over 88.5% of cryptocurrency transactions conducted by Africans are cross-border transfers.” Low fees mean that “users pay less than 0.01% of the total transaction value transferred in cryptocurrency.”

From high levels of inflation and ballooning smartphone penetration — effectively allowing anyone to be their own bank — Africa also has a large young digital user population accustomed to using digital currencies. Africa is a powerful testing ground for the problems cryptocurrencies are trying to solve.

Lyu cautiously adds to the staggering level of growth:

“The rate of this growth may depend on the stance of local policymakers and independent officials on cryptocurrencies. Nonetheless, I believe that a bright future for digital currencies in Africa is inevitable.”

For example, in Central and West Africa, BTC adoption is growing against a backdrop of mistrust and discomfort with the use of the local currency, the CFA. Cointelegraph previously analyzed the state of cryptocurrency adoption in Africa, noting that “the economic opportunity presented by the region is enormous.”

In Lyu’s view, Africa is in an interesting position as the combination of “rising inflation, high unemployment, difficult access to banking services and huge international payment fees” has created an environment conducive to cryptocurrency adoption. At the end of the day:

"The financial problems the region is going through is forcing people to look for new tools and technologies to give them some of the economic freedom they currently lack."

Africa has a wealth of advantages in the long run, “which must be conducive to the widespread adoption of digital assets among locals.” The median age in Africa is very low—just 19 years old—and more than 40 percent of the population is urban.

"Another positive phenomenon is the growing awareness of technology among locals, with many young people exploring programming and internet technologies."

Source: BITCOIN86