Study Shows Crypto Adoption More Significant In Poorer African Countries
According to a Kenyan research firm, while as much as 66% of surveyed African residents claimed to have been exposed to digital assets like Bitcoin, about 82% of respondents said they have never owned crypto. The findings of the survey study also suggest that the adoption of crypto is more significant in poorer African countries than in better-off countries.
By Anna B Kiwanuka
A recent study conducted by Kasi Insights, a Kenyan research firm, has revealed that the majority of Africans surveyed, a staggering 82%, have never owned any form of cryptocurrency. Among the remaining 18% who have engaged with digital assets, only 8% admitted to being active holders of cryptocurrencies like Bitcoin. Surprisingly, despite the low ownership figures, 66% of respondents claimed to have been exposed to cryptocurrencies. However, of this group, only 8% reported having a considerable amount of exposure to crypto.
These findings challenge the widespread belief that Africans have wholeheartedly embraced and adopted cryptocurrencies. Furthermore, the study also dispels certain popular notions regarding crypto adoption levels in different African countries. For instance, the report highlights that countries like Kenya, often referred to as the “Silicon Valley of Africa,” and South Africa are not leading participants in the African crypto market. Instead, the report identifies poorer countries such as Namibia and Angola as having higher adoption, awareness, and usage rates.
The survey, encompassing 19 African countries, suggests that government support and endorsement are crucial for mass adoption of cryptocurrencies. The report advocates for crypto market participants to forge relationships with local authorities to enhance awareness and influence the formulation of favorable regulations.
When examining the demographics of African crypto users, the study reveals that millennials constitute the largest group, comprising 60% of the continent’s crypto investors. In contrast, the baby boomer generation accounts for just 1% of African crypto investors. The survey data also indicates that men comprise 54% of the African investor base.
Regarding the motivations behind investing in digital assets, approximately one-third of respondents stated that they entered the market with the aim of making quick profits. Around 28% cited diversification of their investment portfolios as a reason for becoming crypto investors, while 17% indicated that they did not want to miss out on the opportunity presented by cryptocurrencies.