Kenya a Leader in Cryptocurrency Adoption in Africa

Kenya, a country in Africa regarded as a hotbed for technology and creativity, has long been associated with the cryptocurrency market. During the COVID-19 crisis in 2020, the nation’s beleaguered population turned to regional digital assets (like Sarafu) to help with their financial problems.

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Kenya is presently the top African country for HODLers, according to a recent UN report, and its interest in cryptocurrencies has grown over the years. According to the research, 4.2 million people, or 8.5% of the domestic population, hold digital assets. In contrast, 6.3% of Nigerians and 7.1% of South Africans, respectively, own bitcoin or other cryptocurrencies.

It’s noteworthy that Kenya’s adoption rate of cryptocurrencies is higher than that of leading economies like the United States (8.3 percent ). However, because there is no regulation in the space, it is difficult to determine the value of digital currencies owned by Kenyans:

As with other speculative investments, “the results from bitcoin trading and holding are very individual. Overall, the hazards and expenses they provide in developing nations outweigh them. The industry is not regulated in the country and is still uncontrolled in the industrialized world.

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According to a UN study, Ukraine is the world’s top with 12.7% of its population having access to cryptocurrencies, followed by Russia with 11.9%. Singapore and Venezuela complete the top 4 with corresponding percentages of 10.3 and 9.4.

Over the past several years, shilling, the nation’s official currency, has lost a sizable portion of its purchasing power versus the US dollar. On that topic, Central Bank Governor Patrick Njoroge said that Kenya’s economic problems may be alleviated by using bitcoin last year.

A possible CBDC, according to the Central Bank of Kenya (CBK), might improve cross-border payments and provide certain advantages to the local banking system. To find out whether people in the area would embrace such a product, the institution even published a discussion paper.

However, it is important to note that the assets of bitcoin and CBDCs are extremely different. Although the main cryptocurrency is decentralized, CBDCs would be completely regulated and issued by governments and central banks, giving customers less privacy.

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