- The study revealed that emerging economies in Africa and the global south are significantly outpacing traditional Western markets in the adoption of digital assets worldwide
- The surge was driven by youths preference for Telegram over traditional banking, the study revealed
- South Africa and Nigeria are expected to lead the way in the African cryptocurrency market, which is expected to reach 54 million users by 2025
A new study by crypto exchange Bitget has found that cryptocurrency adoption in Africa since early 2023 has reached unprecedented heights, surging by 189%. The surge was driven by youths preference for Telegram over traditional banking, the study revealed.
The study revealed that emerging economies in Africa and the global south are significantly outpacing traditional Western markets in the adoption of digital assets worldwide.
Unlike platforms like Facebook, Telegram has many active communities and has become a preferred platform among traders. Telegram's privacy features, anonymity, and ability to create customised channels and groups appeal to traders. These same characteristics, however, make it simpler for scammers to target traders.
Bitget said the study analysed crypto-related Telegram activity across several regions between January 2023 and August 2024 and found that Africa's crypto-focused Telegram groups have grown to over 3 million users. This growth, it said, was propelled by the continent’s largely youthful population. Just above half of the continent’s population is estimated to be under 25.
“The leading factors for crypto adoption are economic instability, limited access to banking services, the large number of tech-savvy youth, and the active advancement of innovation in digital finance,” the study stated.
Some experts say Africa’s growth in the crypto space is not surprising. The continent has a large population that is largely youthful, adventurous, and eager to make money from crypto.
For instance, Nigeria is one of the world’s largest crypto markets. In fact, Nigeria's volume of crypto transactions grew 9% year-over-year to $56.7 billion between July 2022 and June 2023, according to New York-based blockchain research firm Chainalysis. Experts suggest that despite the country's regulatory issues, crypto adoption is still growing.
According to the study, South Africa and Nigeria are expected to lead the African cryptocurrency market, which is expected to reach 54 million users by 2025.
The study explained the important role mobile technology plays in promoting crypto adoption. With 900 million active users each month, Telegram has emerged as the main hub for cryptocurrency communities in developing nations. Only 6 million new downloads occur in the UK monthly, compared to 84 million in India alone.
How FBI seized $6 million crypto assets from scammers
Meanwhile, TheRadar earlier reported that the United States Federal Bureau of Investigation (FBI) has confiscated crypto assets worth over $6 million from specialist cryptocurrency scammers who targeted US residents.
The scammers defrauded US residents and citizens from their base in Southeast Asia. According to the US Attorney's Office for the District of Columbia, there was a rising number of fraud cases in the nation, and one or more people lost millions of dollars after being duped into investing in what seemed to be reputable schemes.
