The wealth of and development of cryptocurrencies in Africa
While much of the recent crypto-related news headlines have focused on the fluctuating Bitcoin price, the interest in Bitcoin in Africa has continued to grow at a rapid pace. Paxful, a leading global cryptocurrency-marketplace, reports that its number of transactions from African consumers has risen to about R948million a month. Africa now accounts for the highest number of new subscribers to the portal per month.
The appetite for cryptocurrency is widespread. Over the past year, transactions on the Paxful platform from South Africa increased by 25percent, by 60percent in Nigeria and by up to 100percent in other parts of the continent. For Africa as a whole, Paxful has seen a 225percent increase in users in the last 12 months.
The demand for cryptocurrency is characterised by a marked increase in the 18-30 age group. The average Bitcoin purchase is R871, while the average Paxful wallet transaction is under R435.
Without the scale and type of traditional banking infrastructure available in the developed world, many parts of the continent are already au fait with mobile money payment systems. African millennials are finding that cryptocurrencies offer alternative convenient and cost-effective access to the global financial system.
“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 tech innovations, Africa is leading the peer-to-peer financial revolution. Our aim is to continue to partner with consumers to expand access to the global financial system,” said Ray Youssef, the chief executive of Paxful. Supplied by Paxful