Despite the hardships of the year, the African crypto-economy has grown tremendously, especially with the coronavirus pandemic.
The epidemic is wreaking havoc on economies around the globe, including in Africa. The crisis hit the area hard, causing its first recession in 25 years. The epidemic affects both official and informal occupations, displacing millions of Africans. To combat the crisis, many Africans have turned to the crypto-economy, while others have turned to digital money to hold value, protect wealth, trade, and settle daily payments.
Another potential use case for crypto (Bitcoin) in Africa is a hedge against weak African currencies. Bitcoin achieved a new all-time high of $40,000, and crypto remains one of the few sectors that thrived throughout the pandemic’s economic crisis.
However, p2p trade has increased demand for crypto across Africa, notably Bitcoin,
which has become popular in Nigeria, where major financial institutions accept it. More importantly, most governments, including Africa, are discussing digital currency regulation. In other words, economies are ready to accept digital money as a backup currency. Nigeria and Zimbabwe, for example, have shown a strong desire to regulate bitcoin. According to the SEC, it will regulate some digital currencies to safeguard investors and maintain transparency. To hold the sector demonstrates the nation’s acknowledgement of cryptocurrency’s potential, which many in the country and Africa have appreciated.
As a result, Africa saw a cryptocurrency boom last year. Several African adolescents have been following the State of Play state cryptocurrency report. Since the epidemic hit first in Africa, Bitcoin adoption has skyrocketed, giving it the second-strongest peer-to-peer market volume margins. This is according to a research that tracked $33 billion worth of Bitcoin transferred between exchanges.
Most Bitcoin transfer volume comes from G-20 nations. In the first half of 2020, Seychelles accounted for 31%
of worldwide coverage. Nigeria, South Africa, Kenya, Ghana, Zimbabwe, and Botswana had the greatest cryptocurrency prevalence in Africa. According to another research, Bitcoin (BTC) peer-to-peer trading volumes increased in India, South Africa, Ghana, Kenya, Argentina, Chile, and Nigeria, currently ranked second globally.