Cloud Hosting

We have enough talk about how America has adopted Cryptocurrencies and how their economy has got a significant boost. America being at the top of the Global finance ecosystem, we accept it to grow no matter what route it takes. This is the reason why countries don't take America's example for Cryptocurrency adoption.

But what if we tell, Cryptocurrency holds the potential to enhance the economy of a developing country like Africa? Would you believe us?

Yes, in the last year, Africa was the fastest-growing nation in terms of Cryptocurrency adoption. Experts are keeping a close eye on every movement. After all, this can go down in history as a case study on how Cryptocurrency can revamp the failing economy.

For a long time, Africa has suffered from infrastructural problems, making financial services less accessible. Seeing the crumbling infrastructure of the nation, the people of Africa took their chances with Cryptocurrencies. And it really does wonders for them. Today, Africa is one of the fastest-growing Crypto nations.

Africa is the second most populated continent in the world. Due to its historical issues with colonization, civil wars, and harsh terrain, the country has suffered severely from infrastructural problems. This has led to severe problems, one being almost 57% of the population remain unbanked.

Despite being one of the major issues, the same problem has made an encouraging environment for Cryptocurrencies.

Cryptocurrency as a whole has seen noteworthy growth during the pandemic, especially in Africa. Africa has been named the fastest-growing nation in terms of Cryptocurrency adoption in the last years.

The African Crypto market has grown over 1200% in the last year. Chain analysis estimates that the African countries' total Cryptocurrencies from July 2020 to June 2021 is around $105 billion.

The report also features these Crypto trends in Africa.

While P2P transactions contribute to only a tiny part of all African transactions (2.6% for Bitcoin & 1.6%) for all Cryptocurrencies, no other region uses Cryptocurrency for P2P services as high as the African users.

The major driver for this large-scale adoption is banks. Banks have made it impossible for major African countries like Nigeria and Kenya to adopt Cryptocurrencies.

Seeing how governments are against the regulation of Cryptocurrencies, it comes as no surprise for the residents of the nation to turn towards P2P services.

Between July 2019 and June 2020, African cross-region values crossed the expectation of Chain analysis. This shows just how many Africans are receiving their remittances in the form of Crypto.

Chain analysis also pointed out the Cryptocurrency payments growth below $1000. This shows potential Africas remittance industry holds.

If you are wondering why Africa is a nation with a booming remittance industry, the world banks data shows that Sub-Saharan Africa is one of the most expensive places to send money. Hence, they found using Cryptocurrency more effective than traditional money transfer services.

When we talk about African countries, the first thing that comes to mind is the high inflation rate. African countries are known for their devaluation of currencies. Currency risk in African countries is sky-high.

For a country that imports goods more than they export, constant devaluation of the central currency erodes the wealth of the African countries.

This is the reason why African people are more comfortable in using Cryptocurrencies for all kinds of transactions.

Despite being one of the smaller Crypto-economies globally, Chainanalysisb found that Africa has been a place with some of the highest Grassroot adoptions.

Now, what does grassroots adoption mean? Grassroot adoption is a term used for an area with most people being connected to Cryptocurrency networks. For Africa, this figure is 7% which is higher than the global average of 5.5%.

If you drill down further to see where these Cryptocurrency transactions have happened, you will find that most of the transactions are done by professionals and retail marketers.

For a person living in Africa, it is hard for them to keep their wealth in the form of central money. Over time, the face value of the currency degrades.

If you are one of the readers who belongs to any African country, you likely dont have a bank account. What if we say you can open an account right here, right now.

By clicking the link, you will be redirected to a Crypto-based website, where you can register yourself and enjoy digital banking-like services.

Link:
Why The Rise Of Cryptocurrency Adoption In Africa Should Be Noticed Closely? - The Dubrovnik Times