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Africa optimistic about cryptocurrencies despite infrastructure and regulatory hurdles

May 20, 2020

A new report from Arcane Research shows this African countries have some of the highest cryptocurrency ownership rates in the world.

South Africa ranked third worldwide, with 13% of internet users owning or using cryptocurrencies. Nigeria ranked fifth with 11% of internet users who own cryptocurrencies. The world average for this is 7%.

Indeed, as Cointelegraph recently reported, Bitcoin (BTC) trading volume in sub-Saharan Africa broke previous records released at the peaks of the 2017 bullish rally.

Clear interest in cryptocurrencies

Africa optimistic about cryptocurrencies despite infrastructure and regulatory hurdles
Africa optimistic about cryptocurrencies despite infrastructure and regulatory hurdles

Arcane Research found that Uganda, Nigeria, South Africa, Kenya and Ghana are among the top 10 countries where Google searches for the term “cryptocurrency”.

Sub-Saharan Africa also has a huge remittance market that generates around $ 48 billion annually. Today’s expats rely on slow, centralized transfer systems that charge transaction fees of up to 9%. Even mobile payment alternatives charge a fee of around 11%.

These factors, along with the high inflation rates in some African countries, reflect the urgent need for cryptocurrency alternatives on the continent.

But there are obstacles

However, the report notes a significant lack of related infrastructure. B. Crypto mining operations, dealer support, smartphone penetration and internet connection. These hinder the wider reach and usefulness of cryptocurrencies among Africans.

In addition, there is little or no clarification from governments about regulating cryptocurrency in African countries. Almost 60% of African governments have not yet clarified their stance on cryptocurrencies, according to the report. This is an obstacle to the introduction of digital currencies.

The fact that African citizens trust crypto assets despite a lack of infrastructure and regulatory clarity is evidence of the huge scope for cryptocurrency adoption across the continent.

Many key players in the cryptocurrency industry are already entering African markets. In a recent “Ask me anything” session, Binance’s founder, Binance, the world’s leading crypto exchange, Changpeng Zhao said that Africa was an undeveloped crypto market and that the exchange was working to offer its services on the continent.