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Kenya’s Cryptocurrency Adoption Rate Is The Highest In Africa – Here’s Why

Kenya’s Cryptocurrency Adoption Rate Is The Highest In Africa – Here’s Why

The adoption rate of digital currency in Kenya is unlike any other country in Africa.

The United Nations reports that Kenya has the highest proportion of its population holding cryptocurrencies in Africa, highlighting the country’s exposure to the downturn in the digital currency market.

According to a study by the United Nations Conference on Trade and Development (UNCTAD), around 4.25 million Kenyans, or 8.5% of the population, own digital assets.

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This places the African nation ahead of industrialized economies like the United States, which is in sixth place with 8.4% of its population holding crypto assets.

The volume of peer-to-peer (P2P) cryptocurrency trading in Kenya is the highest in the world, while overall transactions in the country rank sixth. In terms of blockchain-related transactions and cryptocurrency holdings, it is the highest-ranked African country among the 10 most populous nations in the world.

Image: People’s Daily

Massive BTC Holdings in Kenya

Kenya’s bitcoin holdings reached more than 3% of the country’s gross domestic product in January 2018, a significant figure considering 10 countries had a comparable level of GDP invested in digital assets.

Kenya has been widely exposed to digital assets for years. In 2020, following the global health crisis, the country’s distraught residents turned to localized crypto assets to deal with their financial difficulties.

In recent years, the use of Bitcoin in African countries has grown significantly. It was then that many Africans recognized the true benefits of cryptocurrencies.

African countries are among the top countries in terms of Bitcoin acceptance, according to a report by Arcane Research. Some of the major African countries include South Africa, Nigeria, Uganda, Ghana, and Kenya.

Bitcoin as a reserve currency

According to UN data, Ukraine leads the world with 12.7% of its inhabitants exposed to cryptocurrencies, followed by Russia with 12%. Singapore and Venezuela complete the top 5 with respective rates of 9.2% and 10.3%.

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Total crypto market capitalization at $886 billion on the daily chart | Source: TradingView.com

Since November of last year, the crypto market, known for its dramatic price swings, has lost more than 50% of its value as investors fled volatile assets fearing skyrocketing inflation and rising interest rates. .

Meanwhile, the Central Bank of Kenya has decided to adopt cryptocurrencies as a reserve currency. According to media sources, the bank’s decision stems from its initiatives to deal with the growing financial crisis in the country.

Central Bank Governor Patrick Njoroge said the decision was made after assessing various circumstances, including a lack of foreign exchange reserves and an increase in money transfers.

Commisceo Global Featured Image, Chart from TradingView.com

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