Crypto boom in Africa: 1200% growth in one year

Long lagging behind in the adoption of cryptocurrencies despite its strong potential, the African continent has increasingly asserted itself in the cryptocurrency market in recent years. A recent report has indeed revealed a considerable increase in the crypto market in Africa between 2020 and 2021. Even if the figures may seem bright, important challenges remain however to be overcome so that Africa can finally play the leading roles on the market. international scene in terms of cryptocurrency adoption.

Remarkable growth between 2020 and 2021

Cryptocurrencies are coming to Africa and attracting more and more people. The recent Emurgo report which depicts the state of Web 3.0 on the continent proves it so well. In effect, the study reveals that the African cryptocurrency market has seen an increase of more than 1200% between 2020 and 2021.

Moreover, four countries have managed to climb into the world’s top 20 in terms of cryptocurrency adoption. These are Kenya, Nigeria, South Africa and Tanzania. The top three alone accounted for 70% of the $88.5 million in blockchain funding received by Africa in 2021.

Although these performances are remarkable, all is far from rosy. Africa’s share of blockchain funding is only 0.5%. Mass adoption of cryptocurrencies in Africa remains hampered by bans and restrictions in many countries. According to the report, some African countries remain wary due to the risky nature of these digital assets.

Important challenges to be overcome for a better adoption of cryptocurrencies in Africa

The authors of the Emurgo report believe that the development of the African crypto industry will necessarily require good collaboration between participants and regulators. They state, “As the need for blockchain and cryptocurrency regulation grows, key stakeholders need to work closely with regulators. This will ensure that risks that may arise as a result of regulatory changes are sufficiently mitigated.”

According to them, the adoption of transparent regulations will increase the use cases of blockchain. Which will stimulate new investments and blow up the crypto market in Africa.

To conclude, cryptocurrencies continue to gain ground on the African continent. However, challenges remain for mass adoption of these digital assets in Africa.