Report Africans Are Turning Cryptocurrencies As A Means Of Exchange Over Local Fiat Currencies
Report: Africans Are Turning Cryptocurrencies As A Means Of Exchange Over Local Fiat Currencies
September 10, 2020
Report Africans Are Turning Cryptocurrencies As A Means Of Exchange Over Local Fiat Currencies
Report: Africans Are Turning Cryptocurrencies As A Means Of Exchange Over Local Fiat Currencies
September 10, 2020

A new report from blockchain analytics firm Chainalysis said that Africans are increasingly turning cryptocurrencies as a means of an exchange over local fiat currencies.

It has been reported that data from the firm shows that many locals individuals and businesses are using cryptocurrencies to avoid high fees, regulatory complications, and currency instability.

However, the number of monthly transfers to and from Africa has passed the 600,000 marks, as the total number of transfers under $10,000 jumped by 55% in the year to June to reach $316 million. Nigeria, which is the continent’s largest economy, South Africa, and Kenya lead the region in cryptocurrency transfers.

Abolaji Odunjo, who runs a mobile phone retail store in Lagos, Nigeria’s largest city, started using Bitcoin to pay his Chinese suppliers.

He said:

“Bitcoin helped to protect my business against the currency devaluation, and enabled me to grow at the same time.”

He added that the payment method helped him avoid high fees and was an alternative to purchasing increasingly expensive US dollars.

ALSO READ :  KFC Rolls Out Blockchain Pilot Program To Improve Digital Advertising And Media Buying

Many African countries struggle with currency devaluation and instability, which increases the demand for, and consequently the cost of buying US dollars. Some currencies, like South African’s Rand, have lost over 50% of their value against the US dollar in the last decade.

Others said that Bitcoin payments also help those who have family members living overseas in countries like the US and the UK to send money back home.

According to a post by the World Bank, fees for fiat remittance in Sub-Saharan Africa costs 8.9% on average, with South Africa recording the highest costs of up to 20% per transaction. Bitcoin fees sit drastically lower, typically sitting below 3%.

It has been analyzed that the value of cryptocurrencies sent to Africa in 2020 is set to surpass the previous year’s total sent of $8 billion with almost $1 billion sent in June alone.

ALSO READ :  Inner Mongolia to Start Limiting Crypto Mining

Thus, the World Bank reported that only $48 billion worth of fiat was sent to Sub-Saharan Africa in 2019, with the total expected to fall to $37 billion this year.

Source: Cointelegraph | Image: Kryptomoney


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.