In the past few years, there has been a lot of buzz around cryptocurrencies in Africa. Although no African country’s central bank has approved of it, the digital currency has gained a lot of momentum in countries like South Africa, Nigeria and Kenya and Africans are more open to adopting cryptocurrencies than people from other continents, the global cryptocurrency platform, Luno discovered.
From Luno’s Emerging markets are money savvy and ready for change – ‘The Future of Money’ Research, it was discovered that almost three times as many respondents from Nigeria and South Africa believe that a single global currency would make the current financial system better.
According to Luno CEO, Marcus Swanepoel, “As some of the world’s largest tech giants announce they are launching cryptocurrency coins we believe developing markets will be the lead adopters. Our research shows that in these markets people are more financially savvy because they have to be, which means that they need and understand the benefits the new coins can offer.”
Recently there has been a boom of cryptocurrency startups, some registered under the guise of financial institutions. Especially as the call to better regulate cryptocurrency gained momentum. Many Central Banks even issued warnings to the public about the pitfalls of investments in cryptocurrencies.
Africans love get-rich-quick schemes. In January 2018, Citigroup reported that Nigerians were the third-largest holders of Bitcoin as a percentage of gross domestic product. Little wonder Luno’s data identifies money as a focus in emerging markets. 60 percent of respondents stated that money was important to them because they needed to secure their family’s well-being while 33 percent (25 percent from Nigeria and 8 percent from the United Kingdom) stated it was to pay for their education. So they believe that cryptocurrency can provide a secure and cheaper means of exchanging value.