Should we have our eyes on Africa right now? Ray Youssef, CEO of Paxful, a peer-to-peer lending platform has recently noted that we may be underestimating the crypto potential of the southern continent.
Nigeria’s crypto authority is currently under some major pressure and is about to witness the competition coming from Cameroon and Ethiopia, says Youssef, as new markets are “blowing up” every day.
His statement shouldn’t be any surprising since Nigeria makes Youssef’s Paxful’s biggest market to date, homing 1.5 million users and $1.5 billion in trade volume.
Reasons behind the growing adoption
Africa’s growing love for digital assets, obviously, needs a deeper reading. Low levels of banking and overpriced transaction costs are not alone on the list of reasons for stimulation of crypto adoption in African countries. Africans living outside their homeland are sometimes forced to monumental levels of remittances, reaching 20% for performing an international bank transfer.
During the last decade, most of the African countries have started to fall into a deep economic depression following a series of explosive inflations and devaluation of state currencies.
Analogy to Digital money?
Crypto’s resemblance to mobile money – warmly welcomed and highly approved African concept currently counting more than 300 live services for digital payments aimed to fight the traditional banking scene, is now taking a revolutionary turn by helping the Africans bond more with crypto and educate themselves in trading and simply performing day-to-day money transactions.
Ghanian cryptocurrency expert Elisha Owusu Akyaw says virtual money has started to attract the youngsters because of the lack of jobs and a possibility of economic connection with the outside world, connecting Africans with foreign employers and professionals and sometimes, with a better life.
The negative light
Negative reputation of crypto and it’s relation to scam can create a wall between the Africans and mass healthy crypto adoption. The Central Bank of Nigeria (CBN) has previously issued a statement that cryptocurrencies are extensively being used for various illegal activities, including money laundering. Country population’s general tendency to fall for scammy financial schemes keeps the interest in crypto quite high.
Starting January 2021, Kenya is set to experiment with a digital tax , possibly opening the prospect for more crypto regulation and adoption in Africa. The rise of online educational institutions around crypto keeps on growing, attracting young minds all over the Southern Continent.
When it comes to trading tops, Bitcoin, Litecoin, XRP, Monero and Dash are just a few currencies currently resonating in Africa. We expect this boom to be followed by a louder economic revolution amongst the continent’s population.