Since the Nigerian Securities and Exchange Commission ruled to treat cryptocurrency assets as securities, cryptocurrency uptake has been on the rise across the whole African continent.
This a trend that looks likely to grow and continue across the coming years and over the next decade. Bitcoin enthusiast and Twitter user, Dorsey, claimed this week that African countries have the ideal conditions to allow the use of bitcoin and other cryptocurrencies to flourish. As the local currencies are weak in the majority of African countries, Dorsey has concluded that the tech savvy youth in many poor African countries will become inspired to use cryptocurrencies to access global trading markets. Weak local currencies make global trade virtually impossible through traditional financial avenues, as the money transfers required to obtain dollars are complex and expensive. Already, however enterprising youths are using technology and digital currencies to bypass this process.
The tech savvy youth in Nigeria are already leading the way when it comes to investing and trading in cryptocurrencies, setting an example for countries across the continent.
The West Afriacan country is top of the pile in terms of P2P cryptocurrency exchanges, and, according to one survey, has the highest percentage of crypto users on the planet.
And why is this?
Largely thanks to the country having a youthful population. The average age in Nigeria is just 18, and inspired by the country’s deprivation, the Nigerian youth have helped the country to become more prosperous by turning it into a tech hub over the last decade. This first came on the radar in the developed west due to the infamous “Nigerian Prince” scams, that targeted mostly elderly Europeans and Americans. Now, however, more of Nigeria entrepreneurial youth are turning to more legitimate crypto investments, backed by their government’s regulation of their assets. Whatsmore, Nigeria and other African nations are actually using bitcoin for its intended purpose – as a payment tool.