During the 2021 Chainalysis Global Crypto Adoption Index report on Tuesday, Nigeria was named the sixth country in the world adopting to crypto at the moment. This comes in despite the central bank ban placed on holding the virtual currencies.
The African region has been reported to have one of the highest grassroots adoptions, with Kenya, Nigeria, South Africa, and Tanzania ranking along in the top 20 list of Global Crypto Adoption Index.
The report also added that even though Africa has the smallest cryptocurrency economy than any other region, the continent has received $105.6 billion worth of cryptocurrency between July 2020 and June 2021 and is now one of the most dynamic and exciting place for global adoption of cryptocurrency.
Africa has the third-fastest growing crypto economy, and a bigger share of its overall transaction volume made up of retail-sized transfers than any other region at just over 7%, versus the global average of 5.5%.
Peer-to-Peer platforms are especially popular in the continent compared to any other region, and many of the cryptocurrency users rely heavily on those platforms not just as an on-ramp into cryptocurrency, but also for remittances and even commercial transactions.
It should also be noted that cross-region transfers make up a bigger share of Africa’s cryptocurrency market than the other regions at 96% of all transaction volume, versus 78% for all regions combined.
The Central Bank of Nigeria (CBN) had warned people who invest in cryptocurrencies, saying such currencies are not accepted as legal tender in Nigeria earlier this year, and the bank even directed all banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.