Report – Africa Bitcoin News

According to a recent Chainalysis report, although Sub-Saharan Africa is believed to account for as little as 2% of global transaction activity, the area “contains some of the most well-developed cryptocurrency markets of any region.” Additionally, Sub-Saharan Africa’s “retail market and outsized usage of P2P platforms make it unique compared to other regions.”

Sub-Saharan Africa’s ‘Outsized Usage of P2P Platforms’

According to a new report by blockchain intelligence firm Chainalysis, Sub-Saharan Africa’s total crypto transaction volumes of $100.6 billion seen between July 2021 and June 2022 are the least of any region that has been surveyed. The on-chain volume during the period is 16% more than in the previous period. However, the report states that Sub-Saharan Africa accounts for only 2% global crypto activity.

Still, according to the blockchain analysis firm’s findings, Sub-Saharan Africa likely has some of the most developed cryptocurrency markets globally. According to Chainalysis,

[A]A deeper examination reveals that Africa is one of the most developed cryptocurrency markets. This region has deep penetration of and integration of cryptocurrency in everyday financial activities for many users.

To help buttress these assertions about the region, the report points to the structure of the region’s crypto market and how this distinguishes Sub-Saharan Africa from other regions. As explained in the report, the retail market as well as an “outsized usage of P2P platforms” is what separates this region from the rest of the global crypto market.

“Retail-sized transfers below $10,000 make up 6.4% of its transaction volume, more than any other region. If we take a look at individual transfers, the importance of retail is more evident. Retail transfers make up 95% of all transfers, and if we drill down to just small retail transfers under $1,000, the share becomes 80%, more than any other region,” the report stated.

The Economic and Financial Challenges that Continue to Drive Crypto Use

The region is seeing an increase in users who prefer peer-to-peer exchanges (P2P). As stated in the report, the region’s P2P volumes alone are thought to “account for 6% of all cryptocurrency transaction volume in Africa.”

Concerning Sub-Saharan Africa’s projected future use of crypto, the report said:

“Overall, we expect cryptocurrency usage in Sub-Saharan Africa to continue growing as long as residents face issues crypto has proven it can solve for them, such as preserving savings through economic volatility and enabling cross-border transactions in places with strict capital controls.”

To receive a weekly update about African news, sign up here

Let us know your opinions on the story. Comment below and let us know how you feel.

Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.