Crypto Adoption in Africa Is on the Rise

As Africa’s crypto adoption continues to grow, crypto startups are attracting ever-more funding venture capital firms.

Venture Capital Firms as Angel Investors

As reported by Nation, African blockchain firms raised nearly three times as much in the first and second quarters of 2022 ($304 million), compared to the $127 million they raised overall in all of 2021.

Various African cryptocurrency firms received $91 million in venture capital investments during the first three months of 2022. The inflow increased by 134% in the second quarter to reach $213 million.

KuCoin, a cryptocurrency exchange based in Seychelles, raised $150 million; this has come to be known as the “mega deal” for the African blockchain business.

While Congo-based Jambo raised $30 million and South African exchange VALR raised $50 million, Pan-African cryptocurrency exchange Mara and Nigerian startup Afriex raised $23 million and $10 million, respectively.

Moving Forward with Blockchain Adoption

African countries are moving forward fast with crypto adoption with various initiatives. Recently, the Central African Republic authorized the use of Bitcoin as legal tender, following in the footsteps of another developing country, El Salvador.

Adrian Labs, a notable Pan-African incubator project, has also entered the scene to support the companies and entrepreneurs in the area using blockchain, artificial intelligence, and other cutting-edge technology. Among the tech unicorns that have embraced blockchain technology are Senegal’s Wave and Interswitch, a Nigerian startup specializing in digital payments.

The first-ever East Africa Blockchain Expedition was established by Jelurida Africa last year to educate the local population about the advantages and improvements of blockchain and cryptocurrency.

A variety of awareness-raising and instructional initiatives have been actively funded by other groups, such as Emurgo Africa, the commercial arm of the Cardano Foundation, to hasten the adoption of blockchain technology and cryptocurrencies.

On the Flipside

  • However, despite ongoing investments into the African crypto industry, the continent only contributed 0.5% of all worldwide funding for blockchain, providing potential investors with room for growth.

Why You Should Care

A survey conducted by AAX and Forrester Consulting assessed cryptocurrency adoption across Africa, Latin America, Southeast Asia, and the Middle East. According to a study, adoption, and awareness of cryptocurrencies, particularly Bitcoin (BTC), are at an all-time high in these places, with Africa leading the way.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Paulina is a writer, reporter, and digital craftswoman. Her educational background extends from anthropology to IT & multimedia. She has experience working with tech startups, as well as mastering the craft of journalism. At DailyCoin, Paulina focuses on the world of metaverses, NFT marketplaces, NFT art, and blockchains backing NFT technology.