Africa has one of the fastest-growing crypto spaces in the world, with Africans sending about $8.0 billion worth of crypto, while receiving about $8.1 billion worth of crypto in 2019.
The increased usage by many young, educated Africans is a result of the economic instability and high bureaucratic processes by African banks for transfers. Bitcoin offers low-fee remittances and an alternative way to preserve and grow wealth.
Bitcoin is attracting many African millennials, as a report coming from the World Bank revealed that the global average cost of sending $200 remains as high as 6.8% in the first quarter of 2020, only slightly below the previous year. Sub-Saharan Africa continues to have the highest average cost at about 9 percent, yet intra-regional migrants in Sub-Saharan Africa comprises over two-thirds of all international migration from the region.
These high transactional costs have been countered with the usage of Bitcoin, where transaction cost can be as little as $5 to move over $10,000 worth of Bitcoins.
In an explanatory note, Adebayo Juwon, FTX Country Manager, spoke exclusively to Nairametrics on why Bitcoin is fast gaining traction among Africans. He said:
“Bitcoin serves as a store of value, speculative asset, and means of payment, among other things. Bitcoin is personally owned by holders, which no government has authority over. Africans are getting the idea of Bitcoin, and using it more for transactions across borders with no third party involved, no long processing period, and low fees.
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