The Current Crypto Trading Market in Africa

Cryptocurrencies are becoming popular across the globe, but there are some countries where it’s still growing. Africa is one of the continents rapidly adopting cryptos but facing challenges nevertheless.

Before you can buy various cryptos, from BTC to USDT, in Africa, you need a better understanding of the current market.

History of Cryptocurrency in Africa
When cryptos entered the market in 2009, starting with the iconic Bitcoin, Africa wasn’t quick to accept it. The continent primarily didn’t have the resources to use cryptos. Further, the volatile nature of these virtual currencies made many Africans distrust them. However, eventually, the continent started to accept cryptos, especially in South Africa.

Some cryptocurrencies, like the South African Luno Exchange, originated from the continent. Another example is the Kenyan crypto, BitPesa. Overall, cryptos started growing at an astonishing rate on this continent.

Current Crypto Trading Market
Virtual currencies aren’t popular in all African countries. Still, places like South Africa, Nigeria, Tanzania and Kenya especially adopted them. While they’re the frontrunners for cryptos in this continent, it might not remain the case for long.

Some African countries, like Ethiopia and the Republic of the Congo, explicitly ban cryptos. Others, like the Central African Republic, legally allow it. Many global governments like the UK, US, Canada, Switzerland, Japan and South Korea regulate the crypto market. These countries require licences, making it part of the central bank currency project.

Africa is one of the fastest-growing crypto markets. It grew by 1,200% between 2020 and 2021 and could benefit from regulating this industry. Many African countries now allow crypto trading with some restrictions. Yet, it’s not all progressing as smoothly as it sounds like it could.

The Challenges African Crypto Trading Faces
The regulations surrounding cryptocurrencies aren’t set in stone yet. As such, many African businesses and companies can’t adopt cryptos yet. Further, Africa’s technological infrastructure isn’t advanced in all African countries. The internet is often unstable and some banks are unreliable. This inferior infrastructure is a significant complication for the market.

Although the Central African Republic is the only country besides El Salvador to approve Bitcoin as a legal tender, it isn’t easy to use. The Bank of Central African States (BEAC) prohibited CEMAC countries from using cryptos. The Economic and Monetary Community of Central Africa is made up of various countries. The Central African Republic is one of the CEMAC countries and as such, is violating this treaty.

The Future of Cryptocurrencies in Africa
While Africa is the ideal market to grow cryptos, they face various challenges. The critical difficulties are the BEAC and CEMAC treaty’s ban on cryptos. Further, the unstable and inferior infrastructure and technology present a significant problem.

However, the potential is there. We can see how Africa can steadily grow its cryptocurrency market. With crypto transactions peaking at $20 billion/month in mid-2021, the continent is one of the smallest markets. Yet countries like South Africa, Nigeria, Kenya and Tanzania rank among the top 20 global countries adopting cryptos.