Nigeria and South Africa at the Forefront of Global Cryptocurrency Ownership

Nigeria and South Africa lead global cryptocurrency ownership with high rates of 73% and 68%, respectively. Practical use cases such as inflation protection and business payments promote adoption. Despite accounting for only 2.7% of global transaction volumes, Africa saw $125 billion in on-chain transactions from July 2023 to June 2024. Awareness of cryptocurrency is nearly universal in these countries.

According to a recent report by Consensys, Nigeria and South Africa have emerged as global leaders in cryptocurrency ownership, boasting ownership rates of 73% and 68%, respectively. The growth of crypto adoption in Africa is largely attributed to practical use cases, including inflation protection, business transactions, and small retail payments. Supporting this analysis, a Chainalysis report highlights that sub-Saharan Africa has taken the lead in decentralized finance (DeFi) adoption, driven by a significant lack of traditional banking infrastructure.

Despite the impressive ownership statistics, Africa accounts for merely 2.7% of the global transaction volumes, reflective of its overall smaller economic scale. However, between July 2023 and June 2024, the region witnessed substantial growth in cryptocurrency usage, with on-chain transactions valued at approximately $125 billion. Additionally, nearly universal awareness of cryptocurrency exists in Nigeria and South Africa, with familiarity rates reported at 99% and 98%, respectively.

The rise of cryptocurrency in Africa presents a critical intersection of technology and economic necessity. With limited access to traditional banking, many individuals are turning to digital currencies for everyday transactions and as a safeguard against inflation. The data from Consensys and Chainalysis reveals both the burgeoning ownership and the advantageous position of sub-Saharan Africa in adopting decentralized finance solutions. This trend not only signifies a shift in financial practices but also highlights the importance of digital currencies in addressing economic challenges within the region.

In conclusion, Nigeria and South Africa are at the forefront of cryptocurrency ownership globally, showcasing high adoption rates driven by practicality and necessity. Despite representing a small fraction of global transaction volumes, the growth in Africa’s crypto usage signals a significant shift in financial behavior. The overwhelming awareness of cryptocurrency underscores the potential for its continued integration into everyday financial practices across the continent.

Original Source: iafrica.com