People in Africa are increasingly paying for goods and services using cryptocurrencies to avoid regulatory restrictions, high fees, and the instability of Fiat money.
According to the analytical firm Chainalysis, the number of monthly cryptocurrency transactions to and from Africa exceeds 600 thousand. At the same time, the number of transactions not exceeding $10,000 increased by 55% from January to June this year. In terms of the number of cryptocurrency transactions on the continent, the leaders are Nigeria, South Africa and Kenya.
“Bitcoin helped protect my business from the devaluation of the national currency and allowed me to develop my company,” said Abolaji Odunjo, a store owner in the Nigerian capital, Lagos.
Using bitcoin, Odunjo reduced the cost of commissions when paying for goods to suppliers in China. In addition, the cryptocurrency was an alternative to buying US dollars to pay for goods. Many African countries are suffering from an unstable and cheaper national currency, and here bitcoin comes to the rescue.
According to information
According to the world Bank, in Africa, fees for financial transactions are very high — on average they amount to about 8.9%, and in South Africa they reach 20%. Bitcoin transaction fees are significantly lower.
At the end of last year, Twitter CEO and cryptocurrency enthusiast Jack Dorsey said that the future of the cryptocurrency industry will be determined by Africa.