2 November 2024
Africa See Increase In Crypto Transfers By 55 Percent
People in Africa are turning towards cryptocurrencies as a result of high fees and currency instability. The continent has sawed an urge of 55% in transfers over the last year.
The report of Chainalysis says that Africans are adopting more cryptocurrencies as a means of an exchange over local fiat currencies.
The firm data states that many businesses and locals individuals are using crypto to avoid high fees, regulatory complications, and currency instability.
Around 600,000 transfers took place from Africa. The total number of transfers under $10,000 increased by 55% in the year to June to reach $316 million. Nigeria, South Africa, and Kenya lead the region in cryptocurrency transfers.
One of the retail store owners In Lagos, Abolaji Odunjo, has started using Bitcoin instead of fiat to pay his Chinese suppliers. He said that shifted to crypto for speed and convenience:
“Bitcoin helped to protect my business against the currency devaluation, and enabled me to grow at the same time.”
Odunjo told how crypto payment helped him to avoid paying high fees and it is an alternative to purchase where the U.S. dollar is increasingly expensive. There are many countries in Africa that are facing currency devaluation and instability, which increases the demand for, and consequently the cost of buying U.S. dollars. Currencies such as South African’s Rand, have lost its value against the U.S. Dollar by 50 percent.
Some interviewees told Reuters how crypto payments have helped them to send money to their families who are living overseas in countries like the U.S. and the U.K.
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