The report shows that the crypto adoption trends in Africa are in four major areas which are; peer to peer platforms increasing popularity; crypto based remittances, wealth preservation, and grassroots adoption.
The African banks have for a while been cautious of the cryptocurrencies uprising in their territories. For the longest time they have been used to controlling their countries’ capital and it seems like there is a shift in this. Citizens from various countries within Africa are shifting to the virtual currencies since they entail a factor of the P2P platforms that are more efficient than the banks. Peer to peer (P2P) have continued to grow at a high rates over the past one year and have provided room for the customers to trade cash for cryptocurrencies, unlike the banks that have restricted people to send cash from their bank accounts to businesses that trade in cryptocurrencies. Chainalysis reports that most countries within Africa like Nigeria and Kenya have these bank restrictions that inhibit transactions using crypto.
Artur Shaback, CEO and co-founder of Paxful, a popular P2P exchange platform, opines that this kind of move the banks are implementing has encouraged more entrepreneurs and investors to shift to the cryptocurrency ecosystem. He adds by saying it is often easy to just buy Bitcoin locally on a P2P exchange platform and then send to your business partner.
According to Brookings institute report, Nigeria received about an estimate of half of the $48 billion remittance that was received in the sub-Saharan Africa in 2019. The report shows that there are large sums of remittances payments to African countries, and most of it is being transferred from North America and Europe. Currently it is very expensive to send remittances to the sub-Saharan Africa according to the World Bank Remittance Report. This has led to more individuals turning to Bitcoin or other cryptocurrencies since they have cheaper transaction fees and are way faster.
Artur Shaback also confirms that many individuals from Africa are using cryptocurrencies for savings or wealth preservation purposes. He says that they have experienced a tremendous growth over the past one year on Paxful in Nigeria. Their data confirms that when the Nair’s value deteriorates, the firm records more volumes of Naira trade. This is also a similar case with Kenya. Cryptocurrencies continues to spread in groups with different levels of income. The more the middle class from Africa continue to thrive, the more the use of cryptocurrencies is recorded in Africa.
In Africa, Kenya, South Africa, Nigeria and Tanzania record the highest grassroots adoption and these four countries appear on the top 20 list of the Global Cryptocurrencies Adoption Index. By evaluate a regions overall transaction volume that captures the retail-sized transfers, we can determine the regions grassroots’ adoption. According to chainalysis data the grassroots adaption in Africa stands at over 7% which is higher than the 5.5% of the worlds average.
According to the report: “Drilling down further, Africa also sees a bigger share of its transaction volume made up of professional, large retail and small retail-sized payments than the global average. These numbers are a big part of why so many African countries rank high on our adoption index, as smaller transfer sizes suggest higher grassroots adoption amongst everyday users.”
World Causecoin, a crypto that is built on the premises of Cause Capitalim, presents its self as a peer-to-peer digital currency, which aims at financing cause projects across Africa. Steve Down, the founder of World Causecoin, says that this is Bitcoin with a human face. It is a crypto token created on the premises of abundance for all. Cause Capitalism a new gentler and tender form of capitalism, where wealth is used to transform the society through sustainable projects. Through cause capitalism, World Causecoin will provide Africa’s leading platform for Blockchain based asset tokenization, registry and management.
The World Causecoin cryptocurrency will be asset-backed. The token will be adopted by cause companies that are Cause oriented and will operate under different industries like the e-commerce, banking and food industries.
With the transparency that comes with the cryptocurrency many donors would want to trade or invest in World Causecoin. Here there is assurance that the donations, inform of cryptocurrencies will definitely reach the intended needy person. This will help distribute the world’s wealth to the low income earners and ensure there is abundance for all. With the outrageous adoption of cryptocurrencies going on in Africa, if we as Africa, support the World Causecoin, by trading and investing in it, then we support our very own. The less fortunate in our societies will have enough funding that will help curb poverty on our African soils. Issues of death due to drought and famine, child mortality rates will reduce as the Cause projects associated with the World Causecoin are designed to mitigate such eventualities.
With the World Causecoin, 2% of the amount traded or bought will definitely be transferred to a non-profit company that will ensure there is delivery of services that are aiming to change the lives of the haves not. Not only by giving them aid from time to time, but also through service that will help them to be self-reliant. This is achieved by equipping the less fortunate with financial literacy skills so as to ensure as they get the aid, the individuals would make maximum utilization to change their financial state and be more self-sufficient and self-reliant.
Africa continue to adopt to this new technology that is bringing big shifts in the world. If the African central banks and government can take up this challenge and consider to adopting it too, then Africa can accumulate more wealth over a very short period of time.
