A peer-to-peer Bitcoin exchange known as Paxful Inc. has recorded great growth in its Africa market. The U.S based entity has revealed that Africans now account for the largest number of customers buying and selling the cryptos on its main trading platform. It has so far, recorded a monthly average transaction totaling to $64.5 million.
Africa Crypto Adoption Driven By The Millennials
The 1.2 billion African cryptocurrency users have grown by 225% over the past years. In Nigeria, which is the biggest economy in Africa, transactions on Paxful Inc. rose to 60%, while in South Africa, which is the most sophisticated economy in Africa, the transactions rose to 25%. In other parts of this vast continent, the growth went up to a 100%. According to Paxful’s Chief Executive Officer, Ray Youssef, the adoption of BTC all across the continent has affirmed their belief that cryptocurrency will come to dominate as a mainstream financial system. Just as it has been the case with a number of other distributive financial technologies like mobile money, Africa is now the leader when it comes to peer-to-peer financial revolution.
He went further to explain that more African traders are opening new accounts with Paxful Inc. each day than any other region in the entire world. This growth has shown how the swelling population of millennials in Africa is fast growing to the virtual digital assets. This is not only to circumvent the system that has been mainly dominated by legacy financial bodies and other monopolistic organizations, but also to hedge against the volatility of fiat currency and inflation accompanied with reduced transaction costs. Youssef also revealed that the young people from Africa spend $59 each on Bitcoin through Paxful Inc.
The Less Enthusiastic Governments
The growth in adoption is, however, in contrast to the usual heavy-handedness with which certain African officials have responded to the main issue of the cryptos. This is despite Africa being a region where the digital assets are seen by the majority as core to mainstreaming the unbanked adults that stand at 350 million. In countries such as Mozambique, Namibia, Zambia, and Zimbabwe, cryptocurrencies have been banned, while other countries like Nigeria, Kenya, South Africa, Uganda, and Senegal have adopted it, although in an approach that appears a bit pragmatic.
Africa Trails Behind Russia, Venezuela And The US
A study done by Local bitcoins, a peer-to-peer exchange has revealed that Russia dominates BTC trading with more than a quarter of the entire volume of the platform. It is closely followed by Venezuela, which is at 12.2% and the United States of America, which is at 11.8%. countries from Africa trail with transactions coming from Nigeria amounting to 7.6%, South Africa is at 1.3%, while Kenya is at 0.7% of the total volume. According to the chief operating officer of Paxful, African consumers tend to use the virtual coins for purchasing goods, mostly from abroad, as well as taking part in various investment from some of the most promising blockchain organizations.