The total number of transactions from African consumers has risen to roughly R948 million per month according to Paxful. Photo: Bloomberg
DURBAN - The total number of transactions from African consumers has risen to roughly R948 million per month according to Paxful, a leading global cryptocurrency-marketplace.

Africa now accounts for the highest number of new subscribers to the portal per month too. The interest for cryptocurrency is widespread. 

Over the past year, transactions on the Paxful platform from South Africa have grown by 25%, by 60% in Nigeria and by up to 100% in other parts of the continent.

Africa as a whole, Paxful has seen a 225% increase in users in the last 12 months.

MILLENNIALS DRIVE THE FUTURE

The demand for cryptocurrency is notably characterised by an increase in the 18-30 age group. The average Bitcoin purchase is R871, while the average Paxful wallet transaction is currently below R435.

African millennials are finding that cryptocurrencies offer other convenient and cost-effective access to the global financial system.

A PEER TO PEER REVOLUTION

Africans are using cryptocurrency to satisfy both personal finance needs and entrepreneurial ventures; transferring goods, services, and money domestically as well as globally.

Virtual currencies also serve as an effective and more profitable alternative to their local currency. 

Consumers tend to use virtual currencies to buy goods as well as using crypto as investment vehicles into promising blockchain start-ups. A relatively small number of Africans trade digital currencies speculatively for profit. 

FURTHER INVESTMENT IN AFRICA

Besides supporting blockchain entrepreneurs across the continent, Paxful launched #BuiltWithBitcoin, a campaign encouraging the cryptocurrency sector to contribute funds for humanitarian projects. 

The International non-profit organization, Zam Zam Water, is the implementation partner for the program. Paxful has committed to building 100 schools across the continent, as well as water wells and community gardens for sustainable agriculture.

BITCOIN FOR GOOD

As part of its #BuiltWithBitcoin initiative, Paxful recently launched a crowdfunding campaign to raise R1.3million required to build a primary school in Rwanda, following its initial investment in a nursery school in the country. 

Paxful has also donated R263 000 worth of Bitcoin to kick-start the crowdfunding campaign and has committed to matching all donations from the crypto community until the target is reached.

Ray Youssef, Chief Executive Officer of Paxful said, "The adoption of Bitcoin across the globe re-affirms our belief that crypto will take its place as a mainstream financial system. As has been the case with other disruptive financial tech innovations like mobile money, Africa is leading the peer-to-peer financial revolution".

BUSINESS REPORT ONLINE