From July 2020 to June 2021, the volume of on-chain value received in Africa amounted to $105.6 billion. It is 1200% more than in the same period of the previous year. The drivers were the popularity of P2P platforms and money transfers. As well as the desire to protect savings from inflation.
Kenya, Nigeria, South Africa and Tanzania entered the top 20 of the Global Crypto Adoption Index. The sample includes indicators of 154 countries.
According to the total pace, the continent took third place on the planet. In terms of the share of transactions accounted for by transfers of individuals, the region was on the first line. Almost 7% against the global average of 5.5%.
Restrictions imposed by the authorities
Their business is supported by restrictions imposed by the authorities of many countries. Or, for example, a complete ban on banks servicing local bitcoin exchanges.
Cryptocurrencies also help residents of the continent to bypass the limits on capital withdrawal, insure savings against the depreciation of national currencies and save money on cross-border transfers.
Central Bank Digital Currency
Recall that in August, the Central Bank of Nigeria presented a draft of the guidelines for the national digital currency being developed. Thus, the regulator will deal with the issue, distribution and repayment of digital Nigerian naira. Central Bank Digital Currency (CBDC) will not replace the fiat currency and does not involve the accrual of interest.
The Central Bank will implement a multi-level Anti-Money Laundering (AML) and Know Your Customer (KYC) system with different transaction limits. In addition, the regulator plans to provide seamless transfers between wallets with CBDC and bank accounts without fees for certain types of transactions. Zero fees will allow residents to compete with providers of digital and mobile banking services.
Earlier, the monetary regulator of Ghana announced the “advanced stage” in the creation of the CBDC. The Governor of Ghana’s Central Bank Ernest Addison said that Ghana became the first country on the continent to start studying the concept of a digital currency of the central bank. Moreover, success in the development of a digital currency became possible after launching a “regulatory sandbox” in partnership with Emtech in February.