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Angola, Algeria and Namibia leading in blockchain and cryptocurrency adoption in Africa, says a new study

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Africa is experiencing a surge in awareness, adoption, and usage of cryptocurrencies, according to a recent study conducted by Kasi Insights, a Kenyan research firm.

The study reveals that while 66% of Africans have been exposed to cryptocurrencies, only 8% of respondents confirmed owning crypto assets.

According to the study called The State of Cryptocurrency: Consumer’s habits, attitudes and outlook on
cryptocurrency in Africa
,”Despite Kenya’s reputation as the ‘Silicon Valley of Africa’, the data reveals a contrasting narrative regarding cryptocurrency adoption. Surprisingly, African respondents indicate that the rates of crypto adoption and usage in Cameroon, a country not typically associated with technology advancements, are higher.”

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However, there is a significant interest and potential for growth in the region.

“The leading countries in cryptocurrency adoption are Angola, Algeria, and Namibia. Surprisingly, Nigeria is not in the leader’s pack ,” the report stated.

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Angola, in particular, stands out with 100% of respondents reporting familiarity with cryptocurrency, supported by pro-cryptocurrency legislation from the Angolan Central Bank.

This highlights the importance of government support in driving adoption and education around cryptocurrencies.

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Despite less than 50% of African countries surveyed having adopted pro-cryptocurrency legislation, half of the respondents expressed a basic to expert-level understanding of cryptocurrencies.

However, there is still a lack of awareness about various technologies governing the crypto space, such as blockchain, decentralized autonomous organization (DAO) and central bank digital currency (CBCD).

This presents an opportunity for marketers to provide clearer and more accessible education on these technologies and other Web3 currencies.

The study also found that income plays a significant role in cryptocurrency ownership.

“High-income earners are most aware of cryptocurrencies, with 87% of respondents earning between $1801 and $4500 owning crypto assets. Men marginally outnumber women in crypto ownership, with 19% of men and 17% of women being investors. Furthermore, when it comes to generational adoption, Boomers lead with 20%, followed by Millennials with 19%, and Gen X and Gen Z with 17% and 16%, respectively,” states the report.

Bitcoin emerges as the most popular cryptocurrency among Africans, with 54% of respondents owning it.

Binance follows closely behind with 33% adoption. Ethereum, Dogecoin, Onecoin, and Solana also have significant adoption rates at 27%, 21%, 18%, and 17%, respectively.

Other lesser-known assets claim a 7% market share.

The study highlights that 28% of African crypto owners invest in cryptocurrencies to diversify their financial portfolios.

Additionally, 22% invest with a long-term perspective, aiming to secure their retirement, while 20% aim to provide an inheritance for their families.

Fear of missing out (FOMO) is a driving factor for 17% of respondents, who invested in cryptocurrencies to seize the opportunity.

Despite the recent downturn in the crypto market and FTX’s demise, both crypto and non-crypto users maintain positive sentiments toward cryptocurrencies.

Kasi Monthly Consumer Sentiment reveals that crypto users measured +19 in positivity, compared to +9 for non-crypto users.

Crypto users also express more optimism regarding job opportunities, spending on nonessentials, expectations of increased household income, and the overall health of their finances.

Short-term holding is common among African crypto investors, with only 3% of respondents holding crypto for more than 6 years.

“The majority of investors (28%) prefer a 12 to 24-month ownership cycle, followed by 22% who hold for 6 to 12 months.”

In the study, it is noted that COVID-19-triggered behavior may have influenced this trend, as major crypto assets like Bitcoin and Ethereum experienced significant bullish runs during the early stages of the pandemic.

Recommendations from friends and family (37%) and work colleagues (32%) play a significant role in attracting new investors to the crypto market. Financial advisors (33%) and blockchain experts (30%) also contribute to investment decisions.

When examining sentiment towards crypto over the next five years, 49% of respondents expressed distrust, while 34% remained neutral, and only 17% trusted the asset class.

Boomers were the most distrustful, followed by Gen X, Millennials, and Gen Z. However, 78% of crypto investors believe that cryptocurrencies are more profitable than the stock market, contrasting with 62% of non-crypto investors who share the same opinion.

While cryptocurrencies are perceived as more profitable, they are also considered riskier than traditional stocks.

“36% of non-crypto investors and 32% of crypto investors see crypto as a riskier investment opportunity, while 17% of non-crypto investors and 19% of crypto investors believe that stocks are riskier.”

In conclusion, the study conducted by Kasi Insights highlights the growing interest and adoption of cryptocurrencies in Africa.

Despite challenges such as limited knowledge and awareness of blockchain technologies, the region shows significant potential for growth.

“Government support, education initiatives, and strategic partnerships with local authorities will be crucial in furthering cryptocurrency adoption and creating a favorable regulatory environment.”

The study notes that as Africans continue to invest in cryptocurrencies for both short and long-term returns, the positive sentiment towards digital assets remains strong, signaling a promising future for blockchain technology in Africa.

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Diana Mutheu
Diana Mutheu
Diana Mutheu is a Tech enthusiast, happy to delve deeper into the African tech space covering Social Media, AI, Startups, Telcos, Cryptocurrency, Big Data, Women in Tech and all matters Tech. Write to me @[email protected]

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