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Adoption of crypto in Africa has surged 1,200% in the last year, according to Chainalysis.
Users have opted for peer-to-peer platforms like Paxful and Remitano over exchanges.
Binance’s clients in Africa have opted for peer-to-peer platforms amid bans on the exchange.
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Africa’s digital-asset market has grown over 1,200% by value over the last year, making it the third-fastest growing cryptocurrency economy in the world, as users seek out cheaper and faster ways to transfer money at home and abroad, Chainalysis said in a report on Tuesday.
This is no surprise as Kenya, Nigeria, South Africa, and Tanzania all ranked in the top 20 of the 2021 Global Crypto Adoption Index. Chainalysis also said Africa also has a bigger share of its overall transaction volume made up of retail-sized transfers than any other region at just over 7%, versus the global average of 5.5%.
Peer to peer platforms (P2P) like Paxful and Remitano that do not have a central player like a bank or exchange, have become more popular than ever across Africa as a way of sending crypto.
Users have moved away from exchanges like Binance in favor of this alternative way of moving funds, Adedeji Owonibi, CEO and founder of a Nigerian blockchain consultancy company Convexity, told Chainalysis.
Binance has been banned and blocked in several countries around the world and South Africa issued a warning to the exchange in September and said it was not authorised to operate in the country.
“P2P platforms are especially popular in Africa compared to other regions, and many African cryptocurrency users rely on P2P platforms not just as an on-ramp into cryptocurrency, but also for remittances and even commercial transactions,” Chainalysis said in their blog
Cross-region transfers make up 96% …read more
Source:: Business Insider