African countries cannot be ignored in any conversation centered around cryptocurrency adoption. Because many African countries suffer from a staggering economy, the heat of inflation is never too far away, hence the increasing rate at which business owners and investors in the continent are turning to digital currencies for a change.
Bitcoin adoption is imploding in several African countries, but a select few are pioneering this wave faster than others, and this year, like the ones before, these countries have the potential to influence the bull run.
Being the most populated country on the continent of Africa, Nigeria is a leader in Bitcoin adoption. With the devaluation of the Nigerian naira over the years, Bitcoin easily plays the role of an effective substitute.
This year, Nigeria emerged top of the list for the African country with the most Bitcoin searches on Google, with Delta State and Lagos State, the most populous city in the country, dominating the search trends. With a median age of 18.4, Nigerian youths are clearly leading the bullish wave. Last year, Nigeria reportedly traded over $400 million worth of Bitcoin on local exchange platforms, while Bitcoin acceptance from retail businesses have soared continuously.
Often termed as Nigeria’s rival for closeness and similarity in culture, Ghana is also propelling a bullish Bitcoin wave from its own end. Last year, Bitsika, a startup Ghanaian cryptocurrency trading platform processed $40 million in transactions.
With 96,000 users recorded on the platform, 95% of which became customers only last year, it is clear that although the market is still in its beginning stages, the interest rate is highly promising. According to the platforms’ founder Atsu Davoh “These volumes are from self-determined, autonomous [successful] transactions that users initiated and performed themselves. We did not count system transactions that users did not initiate,”
Upon the advancement of its mobile payment systems, Kenya has pioneered the use of alternative payment systems for e-commerce transactions in the country, thanks to the arrival of Bitcoin. There has since been an upsurge in the acceptance of digital currencies for commercial payment firms according to a report from BBC, with Bitcoin being the most accepted digital currency.
Crypto-transaction volumes from local exchanges have exploded. A 400% growth has been recorded over the course of one year. Tax regulators are not blind to this thriving market, as they’ve quickly implemented digital tax policies following the market’s growth.
Over the next few years, Bitcoin usage will reach never-before-seen highs as these countries continue to diversify their economies. While this growth will not come without hindrances, African youths are showing themselves to be capable of the task ahead.