2024

Medium

Bitcoin

April

<p>Sub-Saharan Africa has the smallest crypto economy of all regions in the world; however, <a href="https://www.chainalysis.com/blog/africa-cryptocurrency-adoption/" rel="nofollow noopener" target="_blank">Chainalysis Data</a> has displayed a unique phenomenon in crypto adoption and penetration in the area in 2023.&nbsp;</p> 
<p>The cryptocurrency market has been expanding rapidly in Africa as a whole; however, unlike other regions of the world, Africa is recording the highest number of sub-$1000 transactions, indicating Bitcoin’s ability to be used as a medium of exchange.&nbsp;</p> 
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   <p lang="en" dir="ltr">1/5<br><br>Africa has validated the usecase for Bitcoin as a medium of exchange<br><br>"𝟳𝟬% 𝗼𝗳 𝗮𝗹𝗹 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 𝗼𝗳 𝗹𝗲𝘀𝘀 𝘁𝗵𝗮𝗻 $𝟭,𝟬𝟬𝟬 𝗲𝗶𝘁𝗵𝗲𝗿 𝘀𝘁𝗮𝗿𝘁 𝗼𝗿 𝗲𝗻𝗱 𝗼𝗻 𝘁𝗵𝗲 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗰𝗼𝗻𝘁𝗶𝗻𝗲𝗻𝘁"<br><br>source: <a href="https://t.co/F4MDzrsE4v" rel="nofollow" target="_blank">https://t.co/F4MDzrsE4v</a> <a href="https://t.co/7TxULGi5L3" rel="nofollow" target="_blank">pic.twitter.com/7TxULGi5L3</a></p>— Daniel Batten (@DSBatten) <a href="https://twitter.com/DSBatten/status/1782282542567289018?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 22, 2024</a>
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<p>The digital asset space has sort of accepted the status quo that Bitcoin can only fulfill its intended function as a store of value. However, cryptocurrency adoption in Africa as a whole suggests otherwise. The study reveals that centralized exchange platforms were the most popular medium of crypto exchange in Sub-Saharan Africa, amounting to about half of all the transaction volume.&nbsp;</p> 
<p>Despite the relatively low crypto market share of 2.3% of total transaction value globally, the region managed to transact close to $117.1 billion in on-chain value. Most of the transactions were under $1 million dollars, showing the African market is more retail-driven compared to any other crypto economy worldwide.&nbsp;</p> 
<p>Between June 2022 and July 2023, Nigeria led the Sub-Saharan crypto economy, receiving close to $60 billion. South Africa and Kenya followed closely with approximately $23 billion and $9 Billion, respectively.&nbsp;</p> 
<h2 class="wp-block-heading" id="why-sub-saharan-africa-is-displaying-interesting-crypto-trends">Why Sub-Saharan Africa is Displaying Interesting Crypto Trends.</h2> 
<p>The Sub-Saharan African economy is continuously accepting crypto as a mode of exchange. The Chainalysis report indicates interesting facts that insinuate the penetration of cryptocurrencies in day-to-day life.</p> 
<p>According to analysis, several users within the Sub-Saharan regions are opting for cryptocurrencies like Bitcoin and Stablecoins as a way to mitigate against Inflation. The Statistics show that Bitcoin’s share of regional transaction volume within the time period of study is highest in Sub-Saharan Africa. Considering the entire regional transaction volume, Sub-Saharan Bitcoin’s share accounts for 9.3%, topping established regions like North America, with 9%, and Eastern Europe, with 8.2%.&nbsp;</p> 
<p>It is clear that many sub-Saharan countries have struggled with rising inflation over the years. The <a href="https://www.bloomberg.com/news/articles/2024-01-22/kenya-shilling-kes-usd-at-record-low-faces-pressure-ahead-of-eurobond-payment" rel="nofollow noopener" target="_blank">Kenyan Shilling</a>, <a href="https://www.bloomberg.com/news/articles/2024-04-10/zar-usd-rand-plunges-as-poll-shows-support-for-anc-dropping-zuma-gains" rel="nofollow noopener" target="_blank">South African Rand</a>, and other African currencies have all had tough times against the dollar, pushing many residents to inflation-proof Bitcoin and other stablecoins.&nbsp;</p> 
<p>Sub-Saharan residents are <a href="https://www.cryptopolitan.com/how-sub-saharan-africa-is-quietly-dominating-the-bitcoin-market/">adopting Bitcoin</a> and dollar-pegged stablecoins in order to escape inflation. Among the crypto-championing nations within the region is Nigeria, a country that deserves all the spotlight regarding crypto adoption.</p> 
<p>Nigeria is not only leading in sub-Saharan Africa; it is among the only countries that recorded a growing crypto economy by transaction value year after year.</p>

Sub-Saharan Africa is Validating Bitcoin’s Use Case as a Medium of Exchange

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Cryptopolitan_News

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