Number of African Cryptocurrency Users up by Nearly 2,500%

The number of cryptocurrency users in Africa grew by almost 2,500% between January 2021 and January 2022, while the average number of monthly transactions went up by 1,400%, a new report by Kucoin has said.

Widespread Adoption of Cryptocurrencies

According to a new report by crypto exchange Kucoin, the number of cryptocurrency users in Africa grew by nearly 2,500% between January 2021 and January 2022. During the same period, the average number of monthly transactions also went up by almost 1,400%, the report added.

Although the African continent’s cryptocurrency transactions are said to constitute 2.8% of global volumes, the observed decrease in the average amount per transaction — according to Kucoin’s report — suggests there are more small payments or transfers now than there were in the corresponding period last year.

As explained in a report which was shared with Bitcoin.com News, the observed growth in the use of cryptocurrencies by African users may be due to the continent’s growing knack for embracing new technologies. The report points to Cairo, Cape Town, and Lagos as the main cities powering the digitization process on the continent. In Nairobi, Kenya’s capital, the number of cryptocurrency transactions are 64% higher than in the rest of the region, the report said.

The Kucoin report also suggests that the growth in the continent’s number of crypto users is linked to factors such as inflation or exchange rate fluctuations. However, it also states that even in countries where the inflation rate is lower, knowledgeable Africans still prefer to protect their savings with cryptocurrencies.

Educating the Masses

The other factor cited as contributing to the surge in the number of cryptocurrency users in Africa is the ongoing campaign to educate the masses about emerging financial technologies. Such educational campaigns are undertaken by independent advocates. Cryptocurrency exchanges like Kucoin are increasingly becoming involved in efforts to educate the masses.

Explaining how Kucoin is working to ensure more people from the continent are knowledgeable about cryptocurrencies and blockchain, the report said:

Not only has it [Kucoin] started a university tour-type education promotion from Nigeria in early 2022, but it has also vigorously expanded its influence in Africa on the Internet to help African people gain more information and education with multiple benefits.

Meanwhile, the report asserts that 88.5% of cryptocurrency transactions carried out by African users are in fact cross-border transfers. The low fees paid by users — often about 0.01% of the overall amount of the transaction transferred — are said to make cryptocurrencies a far more convenient means of moving funds across borders.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.