According to the data coming from a leading global cryptocurrency-marketplace, Paxful, the interest in Bitcoin and other cryptocurrencies in Africa have continued to grow at a rapid pace despite the market meltdown.
Appetite for cryptocurrency in Africa is on an increase
Africa now accounts for the highest number of new subscribers for Paxful per month. The cryptocurrency marketplace also reported that the increased interest is not just limited to one city, state or country but its widespread across the continent. According to the portal, over the past year, transactions on the Paxful platform from South Africa increased by 25 percent, 60 percent in Nigeria and by up to 100 percent in other parts of the continent. For Africa as a whole, Paxful has seen a 225 percent increase in users in the last 12 months.
Demographically, the demand for cryptocurrency is characterized by a marked increase in the 18-30 age group. The average Bitcoin purchase is R871, while the average Paxful wallet transaction is under R435.
Ray Youssef, the chief executive of Paxful was quoted saying that
“The adoption of Bitcoin across the globe re-affirms our belief that crypto will take its place as a mainstream financial system. As has been the case with other tech innovations, Africa is leading the peer-to-peer financial revolution. Our aim is to continue to partner with consumers to expand access to the global financial system,”
The reason for this rise seems to be the absence of the scale and type of traditional banking infrastructure available in the developed world because of which many parts of the continent has already moved to mobile money payment systems. This is kind of pushing millennials from Africa towards cryptocurrencies which now offers them an alternative, convenient and cost-effective access to the global financial system.
Wei Zhou, Binance’s CFO also had shared similar growth prospect for the African continent when he was asked about Binance’s foray in Africa
“A lot of the use cases for cryptocurrency — store of value, remittances, all of that — are in Africa. If we can leverage that into building a financial services provider in the continent, that would be amazing. Currently only about 15 percent have access to traditional banking services.”
Africa is surely moving ahead with crypto adoption and looks like it will just grow with time as more and more people get associated with it in the absence of traditional banking infrastructure.
Will African continent lead the crypto adoption race and move ahead of other continents? Do let us know your views on the same.