The latest study conducted by Arcane Research has revealed that African countries have the highest crypto ownership rates in the world.
According to the report, South Africa, which placed 1st on the continent and 3rd on the world ranking, has 13% of its internet users owning or using crypto. Nigeria which was second on the continent took the 5th spot on the world ranking, with 11% of its internet users owning or using crypto. The report further noted that, Ghana, Uganda, Nigeria, South Africa and Kenya, were all among the top 10 countries worldwide searching for the term “cryptocurrency” on Google.
The Sub-Saharan Africa has a huge remittance market that brings in about $48 billion annually. People from the continent who live in the Diaspora rely on the slow and decentralized remittance systems that could charge as high as 9% transaction fees. Mobile payment, which also serves as an alternative, can even charge higher than the 9%. Alongside high inflation rates in some countries on the continent, it is not surprising that Africa is showing extreme need for cryptocurrency alternatives.
Nonetheless, the report noted some barriers to wider reach and utility of cryptocurrencies among people living on the continent. Significant lack of related infrastructures such as crypto mining operations, supporting merchants, smart phone penetration and internet connectivity were all identified as key barriers.
In addition, the researchers also noted that there is little to no regulatory certainty regarding cryptocurrency in African countries. According to the report, nearly 60% of African government are yet to clarify their stance on cryptocurrencies, which is causing a delay on the adoption of cryptocurrencies on the continent.