People in Africa are increasingly turning to cryptocurrencies as a means of an exchange over local fiat currencies, according to a new report from blockchain analytics firm Chainalysis. The firm’s data shows that many local individuals and businesses are using cryptocurrencies to avoid high fees, regulatory complications, and currency instability. The number of monthly transfers to and from Africa has crossed the 600,000 mark. The number of transfers under $10,000 jumped by 55% in the year to June to reach $316 million.
Nigeria and Kenya lead the region in crypto transfers.
The continent’s largest economy, Nigeria, South Africa, and Kenya, leads the region in cryptocurrency transfers. Abolaji Odunjo, who runs a mobile phone retail store in Lagos, Nigeria’s largest city, started using Bitcoin to pay his Chinese suppliers. He told Reuters that bitcoin helped his business against the currency devaluation and enabled me to grow at the same time. He also said that the payment method helped him avoid high fees and was an alternative to purchasing increasingly expensive US dollars. African countries are struggling with currency devaluation and instability, which increases the demand for, and consequently, the cost of buying US dollars, reported Saumil Kohli.
Ukraine and Russia lead in the global crypto adoption.
As reported earlier, according to new research from the blockchain analytical company Chainalyisis, Ukraine beats Russia, China, and more in adoption metrics. The Index looked at three on-chain metrics, including the total value of on-chain crypto transactions weighted by purchasing power per capita (PPP), the value of on-chain retail transfers weighted by PPP, and the number of on-chain crypto deposits weighted by the number of internet users. The report cited South American country Venezuela as an “excellent example” of the forces that drive cryptocurrency adoption within emerging countries. Venezuelans use crypto more when their native fiat currency is losing value to inflation.