Crypto Adoption in Africa on the Rise, but Asia Comes Ahead

Apart from introducing an entirely new financial ecosystem far away from centralized authorities and allowing people to have more control over their finances, cryptocurrencies could truly have a transformative impact on economic growth and financial inclusion in emerging markets.

An October 2024 report published by Chainalysis highlighted that crypto adoption in Africa, specifically Sub-Saharan Africa, saw significant growth, receiving an estimated $125 billion in on-chain value between July 2023 and June 2024. This was a $7.5 billion increase compared to 2023.

Table of Contents Table of Contents

1. Key Takeaways
2. Sub-Saharan Africa Leads in DeFi Adoption
3. Asia Dominates in Crypto Adoption
4. Future Outlook
5. The Bottom Line
6. FAQs
7. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Sub-Saharan Africa Leads in DeFi Adoption
3. Asia Dominates in Crypto Adoption
Show Full Guide
4. Future Outlook
5. The Bottom Line
6. FAQs
7. References

Sub-Saharan Africa Leads in DeFi Adoption

As the cryptocurrency industry attempts to solve real-life problems, Sub-Saharan Africa continues to lead the mass adoption of decentralized finance (DeFi), focusing on crypto’s practical use cases, such as using digital assets for business payments, as a hedge against inflation, and for more frequent peer-to-peer transactions.

“Drawing on its position as a frontier for financial innovation and inclusion, Sub-Saharan Africa is emerging as a global model for how crypto can drive real-world impact, especially in areas underserved by traditional financial systems,” the Chainalysis report highlighted.

Blake Player, the head of growth at VALR, a cryptocurrency exchange based in South Africa, noted that the findings shared by Chainalysis do not necessarily indicate actual crypto adoption.

Player explained that many developing markets, such as the European Union and the United States, have a much higher total market share in terms of holdings or trade volume; however, the real-economy usage of crypto in these markets is quite low.

“People are mainly speculating and investing which is only one use of crypto. In Africa, we see significant real-world use cases like payments and store of value. For many in markets with high inflation and unstable government, it is a lifesaving innovation.”

Stablecoins Are Becoming Trusted Solution

Mark Mbugua, the regional marketing manager at Yellow Card, the first licensed stablecoin on/off ramp in Africa, told Techopedia that stablecoins could be considered as top African cryptocurrencies poised to have a transformative impact on the region’s economic growth and financial inclusion.

He further explained that in regions where local currencies are very volatile and access to foreign currencies is limited, stablecoins are increasingly becoming a more trusted solution among locals.

“In many parts of Africa, people are increasingly using stablecoins, Bitcoin, and other cryptocurrencies to convert their local currency into more stable digital assets. This allows individuals and businesses to protect their money from local currency fluctuations and devaluation.”

Specifically, cryptocurrency adoption is on the rise in Nigeria. A report by Castle Island Ventures indicates that Nigerian users have the highest stablecoin affinity among surveyed countries.

Distance From Geopolitical Centers of Decision-Making

A tiring topic for crypto investors in the EU and US must be the ever-changing regulatory landscape which requires a great deal of care and research before investors delve into a new crypto project.

However, this is not much of an issue in Africa, Gracy Chen, the CEO of Bitget, a leading cryptocurrency exchange with a strong presence in Africa, told Techopedia.

Chen explained that the distance from geopolitical centers of decision-making allows Sub-Saharan countries to chart their development paths and build their economies with insights from the experiences of the world’s leading economies regarding the use and regulation of digital assets.

“The major economies face significant challenges in this area, with their regulatory bodies frequently addressing emerging issues without the capacity to make sweeping changes. Meanwhile, African nations take advantage of this opportunity, bypassing the trial-and-error method, and focus on creating a modern economic system rather than restructuring a system that was built in the 20th century.”

Providing Access to An Unbanked Population

According to data revealed by the World Bank in 2024, 49% of adults in Sub-Saharan Africa own a bank account. While this may seem incredibly low, it actually represents a 50% growth since 2011.

The cryptocurrency industry has been also helping solve this issue, bringing financial inclusion to unbanked populations, Yellow Card’s Mbugua explained.

“Many Africans still lack access to traditional banking services, limiting their ability to save, invest, or even transact efficiently. Through platforms like ours, these individuals now have access to affordable and fast ways to transfer money, access credit, and invest in wealth-building tools, all without the need for a traditional bank account.”

Asia Dominates in Crypto Adoption

Despite the African region seeing a significant increase and interest in crypto adoption, Asia continues to be the dominating region when it comes to crypto adoption, a survey by Aspen Digital showed.

Additionally, the launch of Bitcoin ETFs earlier this year has helped bring billions of fresh capital into the industry, with 53% of respondents saying they had managed to gain access to crypto via funds or ETFs, according to Aspen Digital.

VALR’s Player added that while Asia is “definitely the leading market” in terms of crypto trade volume, there is a significant degree of familiarity with crypto in regions such as South East Africa.

“The type of real-world use case tends to be quite similar to Africa in terms of remittance and payment, but the market is significantly more speculative and drives a very large percentage of overall derivatives trade in the global crypto exchanges.”

Bitget’s Chen added that low accessibility to banking services could also have played a role in the growing trend of wider crypto adoption in both regions – Africa and Asia.

Future Outlook

Experts predict that success with crypto adoption in Africa will continue.

Despite certain crypto adoption challenges in Africa, the industry has seen new opportunities opening, driven by the need for financial inclusion, lower transaction costs, and protection against local currency volatility.

Yellow Card’s Mbugua added that while the region’s regulatory landscape has lagged behind innovation, certain countries are making strides:

“Yellow Card has taken a proactive approach, working closely with regulators to ensure compliance and shape policy. For example, we were the first company in Botswana to receive a virtual assets service provider license, allowing us to operate under the new regulatory framework,” Mbugua added.

Africa & Asia on the Way to Lead Crypto Markets by 2030-2035

Bitget’s Chen concluded that both Africa and Asia could be bound to become leaders in the cryptocurrency markets over the next 5-10 years.

“This shift is primarily due to their ability to learn from the negative experiences of superpowers regarding cryptocurrency regulations. Additionally, favorable demographic and economic conditions within these regions support this growth.”

The Bottom Line

The rise of cryptocurrency in Africa and Asia highlights the transformative potential of digital assets in fostering financial inclusion, economic growth, and resilience against currency volatility.

With crypto adoption on the rise in Nigeria, Uganda, and other Sub-Saharan countries, the digital assets industry may soon become a tool for real-world utility beyond mere speculation.

FAQs