A new report published by Arcane Research shows that African countries have some of the highest rates of cryptomoney ownership in the world.
South Africa ranked third worldwide with 13% of its Internet users owning or using cryptomonies. Nigeria ranked fifth with 11% of Internet users owning crypto currencies. The world average for the same is 7%.
In fact, as Cointelegraph recently reported, Bitcoin Champion, Ethereum Code, Cryptosoft, Bitcoin Loophole, Bitcoin Trader trade volume (BTC) in Sub-Saharan Africa broke previous records set at the peak of the 2017 upswing.
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Clear interest in cryptomonies
Arcane Research noted that Uganda, Nigeria, South Africa, Kenya and Ghana are among the top 10 countries searching for the term „crypto currency“ on Google.
Sub-Saharan Africa also has a huge remittance market that generates about US$48 billion annually. Today’s expatriates rely on slow, centralized remittance systems that charge transaction fees of up to 9%. Even mobile payment alternatives charge a fee of around 11%.
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These factors, along with high rates of inflation in some African nations, reflect the extreme need for crypto-currency alternatives within the continent.
But there are obstacles
However, the report notes a significant lack of related infrastructure, such as cryptomania operations, merchant support, smartphone penetration and Internet connectivity. These are hampering the greater reach and usefulness of crypto currencies among Africans.
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In addition, there is little or no clarification from governments regarding the regulation of cryptomoney in African countries. Nearly 60% of African governments, according to the report, have not yet clarified their position on cryptomoney, which is causing an obstacle to the adoption of digital currencies.
The fact that African citizens rely on cryptoactives despite the lack of adequate infrastructure and regulatory clarity is a testament to the wide scope for adoption of crypto coins across the continent.
Many important players in the crypto coin industry are already entering African markets. At a recent „ask me anything“ session, the founder of the world’s leading crypto exchange Binance, Changpeng Zhao, said that Africa is an untapped market for crypto, and that the exchange was working to offer its services on the continent.