According to a recent Gemini survey conducted in Nigeria, Kenya and South Africa for the first time in 2022 more people are planning to buy cryptocurrencies.
According to the Gemini survey, one out of five people, which is approximately 22%, in the specified countries own cryptocurrencies. 36% of those who don’t own cryptocurrencies are planning to hold some within the year.
The crypto platform’s survey also revealed that a good portion of Africans believe that cryptocurrencies are the future of money.
- 63% of Nigerian
- 57% of South Africa
- 54% of Kenya
Just as crypto owners from across the world, crypto owners from Africa are inactive traders. Instead, they are holding their cryptocurrencies for the long term.
Cryptocurrency Adoption on the Continent
46% of the individuals from the surveyed regions believe that cryptocurrencies are a good investment, which is not impacted by inflation. This opinion was recorded highest in South Africa.
In South Africa, inflation rates have been skyrocketing for the past 10 years and its local currency has recorded a 102.74% drop in its value.
Gemini reports that “Respondents in countries with 50% or more devaluation against the dollar over the last 10 years were more than 5 times as likely to say they plan to purchase crypto in the coming year, compared to those who experienced less than 50% inflation over the same time period.”
The populations in the survey included 1217 from Kenya, 1214 from Nigeria, and 1234 from South Africa.
Why Not Own Cryptocurrencies?
Compared with 40% globally, 56% of the surveyed countries say that educational resources would help them to acquire cryptocurrencies. The African population do not have in-depth knowledge about cryptocurrencies yet they trust digital currencies.
Trust is another factor that affects crypto adoption in Africa. According to the report, 14% say they do not fully trust digital currencies. This percentage is compared to the 27% who do not trust crypto across the globe.
59% of the population from the survey countries agree that accessibility is great as more people can be connected. This was compared to 43% across the globe.
Why Africans Are Shifting to Cryptocurrencies
As much as Africa receives only 2% of the world’s value of cryptocurrencies, the African crypto market’s rapid growth will transform economies in urban and digital sub-Saharan Africa.
A report from chainalysis shows that between July 2020 and June 2021 a total of $105.6 billion worth of cryptocurrency payments were carried out.
Cryptocurrency platforms are outdoing traditional banking services as they introduced decentralized peer-to-peer lending services. These platforms can help to bring various finance options to underserved clients.
Cryptocurrencies can best tackle several economic challenges that are faced in Africa.
These digital currencies can help bridge financial gaps between micro, small and medium-sized enterprises. They can also help facilitate the transfer of remittances.
Cryptocurrencies also help stabilize low-end mortgages, as well as accommodating the irregular income systems that limit credit.
