The adoption of cryptocurrency is growing worldwide and Africa sticks out as the continent is showing lots of interest in it. Crisis is looming in many economies and cryptocurrency offers an alternative for individuals looking to hedge their funds, or an investment venture.
Over the years, I had highlighted lack of accessibility and negative sentiments as the two main barriers to the growth of cryptocurrency in Africa, however it seems that these hurdles are slowly being crossed;
Accessibility: Cryptocurrency is a digital currency and as such it needs to be operated through a digital device. Internet penetration in Africa is growing and with it is the usage and adoption of digital currencies
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An estimated 420 million people own a mobile device in Africa, with a population of ~1.2 billion, this means about 35% of the entire population have access to mobile devices, smartphone usage is also spreading, as an estimated 60% of the continent has access to 3G network, and 4G usage is equally growing. All this metrics point to a potential rise in cryptocurrency adoption as is evident in recent statistics;
Africans rank atop global cryptocurrency ownership rates, according to a new report by Arcade Research. South Africa ranks third globally with 13% of its internet users owning or using cryptocurrencies, while 11% of connected Nigerians own cryptocurrencies in the fifth-placed populous West African country
With a teeming youthful population, 60% of the continent below 25, gradual growth in digitalization and developing economies, Africa has a plenty of potential to become a major driver of cryptocurrency adoption.
It's however still limited by
negative sentiments. Citizens and governments are reluctant to embrace cryptocurrencies, the former a result of the latter. Centralized organizations like the gov't and banks touts cryptocurrenciea tout Bitcoin to be high risk and vulnerable, and with so many uncertainties in the continent, the people are not willing to add their funds to the list. This however is expected to change as quick access to information grows and more open discussions about blockchain and digital assets are had. Big industries like binance are also utilizing the potential in Africa and this would have a positive effect on adoption.
Africa is indeed a big continent. We know that it slightly comes last when it comes to technology development and industrialization becausw of the native way of life and most tribes aren't reached out by the world's new digital system. Internet, being a vast medium is a very big help in raising opportunities for the African people. The introduction of digital currency helped them realized other potential investments and business ventures. They need to be educated properly and be aided in the resources they need such as gadgets. If the ruler or president in an area believes in the power of Bitcoin, then this must be observed. Considering their population and situation, it will come as a bright news for the crypto community.
