Kenya is the African Leader in Crypto Adoption (Report)

According to a UN study, 8.5% of Kenyans own digital assets. This is approximately 4.25 million people. This makes Kenya a leader in Africa’s adoption of cryptocurrency, while Ukraine is first globally with 12.7% of its residents being HODLers.

Kenyans’ Surging Appetite for Crypto

Kenya, an African nation that is considered to be a hub for innovation and tech on the continent, has been closely linked to cryptocurrency for many years. In 2020, during the COVID-19 crisis in Nigeria, the nation’s struggling citizens turned to local digital assets (such Sarafu) for help with their financial problems.

A recent UN study found that Kenyans have increased their interest in crypto over the years. It is currently the most HODLing nation in Africa. According to the report, 8.5% of Kenya’s population (or more than 4.2 million) own digital assets. Comparatively, 6.3% of Nigerians and 7.1% of South Africans own bitcoins or other coins.

Notable is the fact that Kenya’s adoption rate of crypto currencies exceeds those in other top economies such as the United States (8.3%). It is difficult to determine the value of digital currency held by Kenyans because there is not enough supervision of the sector.

As with all speculative trades and cryptocurrency trading, the returns are highly individual. They are outweighed by the risk and cost they present in developing countries. This sector is not regulated in the country, and it remains largely unregulated in the developed world.

According to UN research, Ukraine was the world’s leader in crypto exposure with 12.7% of its population. Russia comes second with 11.9%. With respective 10.3% and 9.4%, Singapore and Venezuela round out the top 4.

Is Kenya Leaning Towards Bitcoin or CBDC?

Over the years, the national currency of Kenya (shilling) lost a large portion of its value relative to the US dollar. Last year, Patrick Njoroge, the Governor of Central Bank, suggested that Kenya could switch to bitcoin in order to ease some of its economic woes.

“Our decision to switch to Bitcoin is both tactically and logical. Our currency has been the punching bag of the IMF. They claim that the Kenya Shilling is undervalued. We are losing too much because someone at IMF got up wrong. This will be ended by Bitcoin.

The Central Bank of Kenya (CBK), argued earlier this year that a CBDC could provide certain benefits to the national banking infrastructure and increase cross-border payments. Even releasing a discussion paper, the institution sought to determine if locals would support such a product.

It is important to note that CBDCs and bitcoin are two very different assets. The primary cryptocurrency is not decentralized. However, CBDCs are fully monitored and issued centrally by governments and central bank, which would leave consumers with less privacy.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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