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Sub-Saharan Africa is rapidly becoming a hotspot for cryptocurrency adoption, with countries like Nigeria, Ethiopia, Kenya, and South Africa leading the charge.
According to the latest reports from Chainalysis, the region saw an estimated $125 billion in on-chain value between July 2023 and June 2024, marking a $7.5 billion increase compared to the previous year. This increase in volume is not at all unexpected, with improved access to internet and all the online financial tools available to users across Africa. The stage is set for things to really start taking off, and this is becoming ever more apparent to country leaders and members of the public alike.
Nigeria: A Global Leader
Nigeria continues to dominate the cryptocurrency landscape, ranking second globally in terms of adoption. The country’s vibrant Crypto community has embraced digital currencies for various use cases; among these are business payments, hedging against inflation and of course, facilitating cross-border transactions.
Ethiopia and Kenya: Rising Stars
Ethiopia and Kenya are also making significant strides in the Crypto world, ranking 26th and 28th respectively on the Global Crypto Adoption Index. These countries are leveraging cryptocurrencies to address financial inclusion challenges, as barely half of adults in the region had a bank account as of 2021.
South Africa: Bridging Traditional Finance and Crypto
South Africa ranks 30th globally, with a growing nexus between traditional finance and cryptocurrency. Financial institutions are increasingly integrating Crypto into their services, providing users with more options for managing their finances.
The Role of Stablecoins
As we have reported previously at ACCN, stablecoins have become a crucial part of Sub-Saharan Africa’s Crypto economy, accounting for approximately 43% of the region’s total transaction volume. In countries where local currencies are highly volatile, dollar-pegged stablecoins like USDT and USDC offer a reliable way to store value and facilitate international payments.
Check out our recent article looking at Stablecoin use in Africa and learn more about what is behind their increasing popularity across the continent: “National Currency Devaluation Drives Stablecoin Adoption Across Africa.”
Cryptocurrency adoption across African nations is something we are always keeping a close eye on, so be sure to subscribe to our Newsletter and follow us on Social Media for the latest!
