When it comes to the growth of crypto adoption, Africa and Asia lead the world:
- A total of $105.6 billion worth of crypto assets were traded in Africa between July 2020 and June 2021, a growth rate of 1,200% year-on-year. P2P trading dominates transaction volumes:
The main drivers of this boom are the clear and unmet needs of these markets, including:
Lack of financial infrastructure – Africa and Asia are the most unbanked continents. Almost 70% of adults in countries like Vietnam and Morocco do not have a bank account:
At the same time, the mobile penetration rate in Africa is 44% and in the Asia-Pacific region, it is 42%. The decentralized nature of crypto makes financial infrastructure redundant, while people use their mobiles to make direct payments and trade with other crypto wallet owners.
Unstable currencies – Many Asian and African countries have seen significant currency depreciation in the last 5 years. On the other hand, during the same period, Bitcoin and Ether rose over 500% and 2,900% respectively. Many people have turned to crypto-assets to beat inflation, boost their incomes, and maintain the purchasing power of their assets.
Expensive Remittances – Remittances from abroad are an important part of the economies of many Asian and African countries – constituting 10% of GDP in the Philippines and 8% in Egypt. Sub-Saharan Africa has the highest remittance costs in the world, at over 8%. This has led many to bypass the high fees and transfer remittances directly P2P via crypto wallets.
This phenomenal growth has been accompanied by an…