Top 10 African Countries in the 2024 Crypto Adoption Index
Africa has witnessed remarkable growth in cryptocurrency adoption, fueled by rising investments and individual interest. According to Chainalysis, Sub-Saharan Africa contributed 2.7% to the global crypto economy’s transaction volume, with an estimated on-chain value of USD 125 billion in the past year. Diverse uses of cryptocurrencies, such as business payments, inflation hedging, and smaller transactions, drive this surge. Nigeria leads the continent, receiving approximately USD 59 billion in crypto value from mid-2023 to mid-2024, despite government crackdowns on its use. These crackdowns, which primarily involve regulatory measures to control the use of cryptocurrencies, have not dampened the population’s interest in crypto. In fact, some reports show that 33% of the population in Nigeria invests in cryptocurrency, indicating the growing momentum of this trend. Other African nations are also beginning to recognize the potential benefits of digital assets, showcasing a broader trend toward crypto adoption.
Ethiopia’s relationship with cryptocurrencies has significantly transformed, shifting from outright bans to a more cautious exploration of their benefits. Initially, the National Bank of Ethiopia declared crypto trading illegal due to concerns about financial stability and money laundering. However, by August 2022, the government shifted its stance, requiring cryptocurrency operators to register, leading to a notable increase in crypto users—over 1.8 million individuals are now engaging in crypto activities. This policy shift reflects the changing dynamics of the global economy and showcases Ethiopia’s adaptability and openness to new technologies.
Ethiopia is also recognizing the potential of blockchain technology beyond cryptocurrencies, particularly in sectors like digital identity and education. A significant initiative, launched in partnership with Input Output Global, aims to create a blockchain-based digital identity program to combat fraud in education. By digitizing educational records, Ethiopia enhances the credibility of its education system and empowers employers with verifiable credentials, inspiring other African nations with its progress and the adaptability of African nations to new technologies. EBR
13th Year • December 2024 • No. 136