According to Chainalysis’ crypto adoption index, Africa’s peer-to-peer (P2P) trading has been accelerating, and the continent is the second-largest region in terms of adoption.
Nigeria in particular has seen a steady growth all throughout 2020, reporting between $5million to $10m of P2P volumes.
Kenya and South Africa are also doing well with the trading volumes per week reported at $1m and $2m.
Similarly, centralised exchanges have also seen a spike in the activity, and Luno posted a $549m worth of combined volume for Nigerian and South Africa in August.
According to Luno, interest in crypto across Africa has been driven by the “crypto currency benefits.”
The company’s general manager for Africa, Marius Reitz, explained that crypto assets’ popularity has been on an upward trajectory, and specifically to aid workers from abroad who want to remit money back home but do not want to pay expensive transfer rates.
To reflect this popularity, South African regulators said that they would introduce a nationwide framework to establish basic criteria to monitor the industry.
Nigeria’s Securities and Exchange Commission (SEC) also pitched specific guidelines to help establish a more uniform approach towards crypto assets. The commission said that it would treat these assets like securities.
The high rate of adoption means that cryptocurrencies would also see these assets permeate other verticals, such as blockchain gaming.