Cryptocurrency

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The total volume of crypto transactions in Sub-Saharan Africa is lower than anywhere else in the world, but deeper analysis reveals that crypto has penetrated all major financial markets in the region—and has emerged as an inflation mitigation and trading vehicle, New York-based blockchain research firm Chainalysis said in a report on Tuesday. 
As per the 2023 Geography of Cryptocurrency Report released by Chainalysis, Sub-Saharan Africa made up for 2.3% global crypto transaction value between July 2022 and June 2023, having received nearly $117.1 billion in on-chain value. By comparison, the region saw an influx of $100.6 billion in on-chain value in the July 2021-June 2022 period, accounting for 2% of global cryptocurrency transaction value. 
Sub-Saharan Africa also leads the way in terms of Bitcoin adoption and usage globally, outpacing other markets like North America, Eastern Europe, Latin America, the Middle East, Western Europe and Eastern Asia, Chainalysis’ report disclosed. 
The latest edition of Chainalysis’ Global Crypto Adoption Index ranks Nigeria second in terms of Bitcoin usage, only behind India. Nigeria clocked a significant 9% growth in crypto transaction volume to $56.7 billion between July 2022 – June 2023. “In fact, Nigeria is one of only six countries in the top 50 by size globally whose crypto transaction volume grew year-over-year in the time period we studied. Its growth rate of 9.0 per cent places it third among those six,” the report by Chainalysis states. 
Meanwhile, Uganda witnessed a boom in crypto usage, with the volume of crypto transactions skyrocketing by 245% to $1.6 billion during the same period, the report said. In contrast, Kenya’s volume of crypto transactions fell more than a half to $8.4 billion. 
Chainalysis notes that crypto usage and adoption is especially increasing in countries where the values of local fiat currencies are dropping. Case in point–Nigerian naira, which fell to a record low of 970 per dollar on Wednesday. Amid rising inflation and debt, cryptocurrency has emerged as a means for Sub-Sahara African residents to preserve their savings. Chainalysis rightly points out that while wealthier nations may trade more crypto, emerging markets have a greater everyday need for it, which aligns with Bitcoin’s original vision. 
The report also highlights how Sub-Saharan Africa’s proactive approach towards regulation is driving the crypto growth, with South Africa emerging as a key player in terms of crypto regulation and the development of supportive trading frameworks. Earlier this year, South Africa announced plans to <a href="https://news.todayq.com/south-africa-plans-to-impose-a-licensing-scheme-for-crypto-firm/">impose</a> a licensing system on crypto businesses operating within its borders. Interestingly, four million South Africans, or 10% of the country’s population, <a href="https://news.todayq.com/news/finders-report-2-08-million-people-own-bitcoin-in-south-africa/">owned</a> BTC as of August 2022–and the numbers have only gone up since.&nbsp; 
© Todayq News

Report: Bitcoin adoption highest in Sub-Saharan Africa, North America and Eastern Europe fall behind

Todayq News

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