In summary
- Telegram-based Cryptocurrency communities grew by 183% in Africa between early 2023 and August 2024.
- The Bitget report predicted that the cryptocurrency market in Africa will reach 54 million users by 2025, with Nigeria and South Africa leading the way.
- Growth in Western Europe was much more modest, up 11% over the same period, due to tighter regulations and a more mature market.
Telegram-based cryptocurrency communities grew by 183% in Africa between early 2023 and August 2024.
Looking ahead, the report by cryptocurrency exchange Bitget predicted that the cryptocurrency market in Africa will reach 54 million users by 2025, with Nigeria and South Africa leading in terms of users.
The report pointed to “economic instability, limited access to banking services and the large number of young people with technological skills” as some of the reasons behind the surprising growth of cryptocurrencies in Africa.
Meanwhile, the growth of these Telegram communities in Western Europe has been much more modest according to the research, growing by only 11% during the study period. The report attributed this to much stricter regulations and a more mature market for financial services.
The population of many African countries tends to be much younger than most developed nations in Western Europe or East Asia, which could drive cryptocurrency adoption.
The median age in Nigeria and Kenya is about 19 and 21, respectively, according to FBI statistics, compared with 39 in the United States and nearly 50 in Japan.
Many consumers in sub-Saharan Africa are also attracted to cryptocurrency communities as a result of local economic stability, such as unstable tax regimes or low local salaries.
A 28-year-old Kenyan protester told Decrypt in July that he believes participating in cryptocurrency projects can be more lucrative than traditional employment, in a country where the average income is approximately $634.
These types of activities include participating in airdrops, token giveaways, creating content for meme coin trading, or participating in play-to-earn games.
Previous knowledge of mobile money applications can also play an important role in widespread adoption. The protester explained how the majority of Kenyans will have used the M-PESA mobile money app for their transfers, meaning that the use of cryptocurrency apps is not a breakthrough.
However, the growing popularity of cryptocurrencies in some countries such as Nigeria has caught the attention of the government.
In March 2024, the Nigerian government demanded the arrest of several senior executives at cryptocurrency exchanges such as Binance, after alleging that they had established the country’s local currency, the Naira, and facilitated financial crimes and money laundering.
Binance executive Tigran Gambaryan was detained in Nigeria for eight months, after being arrested in February and released last week due to health concerns.
Edited by Stacy Elliott.
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