Adoption of Cryptocurrencies in Africa-Why You Shouldn’t Be Left Behind
Currently, Africa is undergoing an intense economic revolution regarding virtual currency adoption. With mobile money adoption like MPesa, which is widely accepted in Africa, it’s predicted that Africa is ripe for this digital currency shift. Interestingly, this has already begun taking shape, with the adoption of cryptocurrencies in Africa being on the rise. Countries, such as Nigeria, Kenya, South Africa, Uganda, and Ghana are among the top 5 nations in Africa that embrace cryptocurrencies. A report released by Reuters in September 2020 indicated a peak of crypto transfers in Africa to a tune of USD 312 million in June 2020, with Kenya, Nigeria, and South Africa accounting for most of the transactions.
What makes Africa fertile ground for the adoption of cryptocurrencies? Let’s find out….
Devaluation of Africa Currencies
Presently, many African nations face an economic tantrum, with devaluation and inflation hitting hard on their national currencies. Some countries facing currency devaluation and high inflation include Kenya, Nigeria, Ghana, and Zimbabwe. Is it a surprise that these countries are among the most prominent crypto economies? By now, this shouldn’t surprise you.
Educated young guys in these countries have abutted the cryptocurrencies campaign as they regard crypto as a haven to transact and circumvent their devalued and inflated currencies. A good example is Nigeria, ranked number one in the adoption of cryptocurrencies in Africa. The nation is recovering from a recession, but its economic woes continue due to the COVID-19 pandemic. Their currency, Naira, was devalued by 24%, according to the Central Bank of Nigeria, causing many of its netizens to shift into crypto trading, such as Bitcoin and the recently promising coin, TON Crystal. Let’s talk more about TON Crystal later in this article.
Resemblance to Mobile Money
Lack of banking infrastructure in Africa has led to higher cryptocurrencies adoption rates. For example, people in rural areas in Nigeria and Kenya are using digital platforms like mobile money exchanges to transact. Due to the familiarity of digital money in Africa, the adoption of cryptocurrency has become attractive. Many businesses are now accepting payments in crypto and even adding crypto plugins for mobile payment options.
Africa’s Remittances are Skyrocketing
Interestingly if somewhat not surprisingly, a big chunk of money that flows into the African nations, especially Sub-Saharan Africa, are remittances from the diaspora. A report by World Bank indicated that a total of USD 48 billion were remitted to Sub-Saharan Africa in 2019, with Nigeria receiving USD 23.8 billion.
Despite the high remittances, the cost of transferring such funds is high in Africa. Averagely, an individual in diaspora incurs a fee of up to 8.9% to send money in Africa. As a result, many Africans abroad opt to send money in Africa inform of cryptocurrencies. Sending cash via crypto exchanges is far way cheaper than banks.
You’re probably asking which crypto is best to transact? Let me help you to decipher this.
Today, there are many cryptocurrencies globally. With the hype of Bitcoin and Ethereum at the moment, it’s best to consider the recently developed coins and invest your cash with them, such as Cardano, Polkadot, TON Crystal, among others. For example, TON Crystal looks promising and is gaining more acceptance in Africa Crypto hub counties, such as Kenya and Nigeria, and globally. TON Crystal is a project by Free TON, which celebrated its 1st Anniversary on May 7, 2021. The coin is listed in several cryptocurrency exchanges, such as CEX.IO, Crypterium.com, to mention but a few.
Parting Shot….
Do not be left behind. It’s better late than never. Africa is you and me, and as the continent gets digitized through the adoption of cryptocurrencies, we can only be just to ourselves by embracing the transformation for the betterment of Africa and self. Also, if you want to go far, never walk alone. Join like-minded individuals in Africa, and let’s talk cryptocurrencies. Click here to learn more about the Free TON community and be part of their promising crypto journey.
