Moreover, the sources indicate that the African continent has seen increased crypto adoption rates in nations like Kenya, South Africa, Tanzania, and Nigeria. That comes after 2021 saw the digital token market growing by more than 1,200%.
Chainalysis, an analytic platform, shows that Africa received crypto assets worth $105.6 billion from 2020 July to 2021 June. Also, the report confirmed that Africa had seen the highest crypto adoption rates in the globe in Kenya, South Africa, Nigeria, and Tanzania. Keep in mind that the crypto market has attracted many countries after growing by more than 1,200% since this year started. Also, these nation ranks top-20 in Global Cryptocurrency Adoption Index by Chainalysis.
Apart from being the 3rd fastest expanding crypto economy, Africa enjoys a large part of crypto transactions comprising retail transfers, more than 7%, compared to the globe’s average at 5.5%. The report revealed P2P transactions. That is because platforms remained critical since regulators in regions such as Kenya and Nigeria made it challenging for users to transfer money to crypto directly from their bank’s account.
That forced the customer to venture into peer-to-peer transactions to bypass the laws. Keep in mind that P2P services are non-custodial, allowing users to trade money for crypto between themselves. Addeji Owonibi, the CBHUB’s founder, highlighted the shifts in Nigeria crypto market after the central bank banned banks from involving themselves in crypto transactions. Remember, CBHUB is the first crypto community hub in Nigeria.
Owonibi revealed that Binance used to be the favorite crypto platform. However, that changed as P2P sites such as Remitano and Paxful dominated following the sanction by the central bank. He also explained that most peer-to-peer activity involves informal chats through messaging apps rather than conventional platforms. Nigerians have used Telegram and WhatsApp for peer-to-peer trading. Businesses and young individuals have completed transitions worth millions on these platforms.
The report also shows that African crypto exchanges have seen continuous growth over the past year. The transactions volumes indicated that Paxful and LocalBitcoins are among the top P2P sites in the world.
Most individuals in Africa use cryptocurrency for global commercial transactions. Artur Schaback said that sending fiat to China for purchases can be challenging for Kenyan and Nigerian importers. He said that the merchants use P2P exchanges to purchase BTC locally and send it to complete the transactions.