Both past and recent reports have illustrated cryptocurrency adoption in Sub-saharan Africa, proving the growing rate of crypto adoption in Africa despite regulatory challenges from the government. A 2018 report from BitcoinAfrica shows that Africa has the most active cryptocurrency communities across the Globe. The Report also noted 5 top African countries that are fast embracing the use of cryptocurrencies, they include Nigeria, Kenya, Ghana, Zimbabwe and South Africa.

A Chainalysis 2023 report shows how Cryptocurrency penetrates key markets in Africa. The result reveals that African blockchain transactions are more “retail driven”. Meaning that, most African crypto transactions are done individually. Thus recorded a trading volume of over $1 million.

Source: Chainalysis

More importantly, the report shows that Nigeria is leading the cryptocurrency adoption index in Africa and ranks second in Global crypto adoption index in transaction volume.

Source: Chainalysis

The report equally illustrates that Sub-Saharan Africa ranks first in regional Bitcoin adoption in terms of transaction volume.

Source: Chainalysis

So with all this in mind, the question that keeps popping up is the reason why crypto adoption in the African region keeps seeing growth despite the clap-downs from governments. Let's consider a few reasons:-

Cross border transactions

No doubt, cross border transactions have become more efficient with the use of cryptocurrencies. It has even become more instrumental for businesses, students and families. Cryptocurrencies are built to function via a decentralized system. Hence, the transaction records are public while the transaction itself runs through a decentralized system. For cross border transactions,cryptocurrencies are quick to process, and have low transaction cost.

Tamper-proof for inflation

This report here illustrates how Africans' savings are more in Stablecoins and Bitcoins than the local currency, in Nigeria particularly between August 2021 and July 2023. Essentially, Stablecoins is possibly used more as a store of value in Africa than the local currencies due to economic inflation. Stablecoin has less volatility and makes conversion between crypto and fiat much easier.

Conclusion

To round up, most governments in Africa through their central banks have refrained from using, holding, trading and facilitating cryptocurrency. However, the decentralized nature of the blockchain technology keeps many Africans at advantage over the regulations saga.