Sub-Saharan Africa: cryptocurrency transactions reached $117.1bn between July 2022 and June 2023

Despite sub-Saharan Africa's low share of global cryptocurrency transactions, some countries in the region rank highly in the global adoption index for these digital currencies, which are increasingly used as a shield against inflation.

Cryptocurrency transactions reached $117.1 billion in sub-Saharan Africa between July 2022 and June 2023, according to a study published on September 19 by Chainalysis, a company specializing in blockchain data analysis.

This amount, however, represents just 2.3% of all cryptocurrency transactions recorded worldwide.

Although it remains the smallest "cryptoeconomy" of any region in the world, sub-Saharan Africa is home to some of the most developed markets on a global scale. Virtually absent in some of the region's countries, crypto-currencies have become " an important part of everyday life for many people in many other countries ", Chainalysis points out. Nigeria, for example, has risen from 11th to 2nd place in the global cryptocurrency adoption index. Africa's most populous country is second only to India.

Three other sub-Saharan African countries also rank highly in the index: Kenya (21st), Ghana (29th) and South Africa (31st).

The study also reveals that the crypto landscape in sub-Saharan Africa is characterized by a predominant retail market and massive use of centralized platforms, which account for over 50% of transaction volume.

Bitcoin's share of transactions in Sub-Saharan Africa stands at 9.3%, higher than in any other region of the world.

Chainalysis explains this predominance of the queen of crypto-currencies by the fact that African users " are turning to so-called digital gold to find an alternative store of value" against a backdrop of soaring inflation.

" Many countries in the region are grappling with high inflation and rising debt, making cryptocurrencies an attractive way to store value, preserve savings and achieve greater financial freedom. In Ghana, for example, inflation reached 29.8% in June 2022, after 13 consecutive months of increase," the company points out.

Source: www.agenceecofin.com/