While the market is turbulent, there is still a lot of interest in cryptocurrencies across emerging economies, Bitcoinist accounts.
The Central African Republic recently approved the use of Bitcoin, also known as BTC and will allow it to be used in daily transactions. VC firms are investing in the African blockchain landscape.
Despite the current market conditions, cryptocurrency adoption is growing as fast as ever. This has made investors want to get in on emerging markets that new technology tends to happen first.
Some African countries are passing laws around the legality of bitcoin use. Changing laws increases investors’ confidence, which attracts more funding for African-based blockchain companies.
African blockchain companies have raised $304 million in the first two quarters of 2022 from mainly a VC funding. This is three times higher than what was collected during all of 2021.
African crypto startups have seen a huge rise in venture capital funding this year, with the first quarter investment being $91 million and the second being $213 million.
KuCoin, Pan-African crypto exchange Mara, Nigerian crypto startup, and Congo-based Jambo raised $150 million in funding, while South African exchange VALR raised $50 million.
There was a crypto-centric awareness and educational campaigns back in the fourth quarter of 2021, when the financial markets were hitting high points. It has now blossomed into an increased awareness of cryptocurrency across Africa.
The group Jelurida Africa offers blockchain education to locals in East Africa. They had the first-ever East African Blockchain Expedition last year.
Organizations like the Cardano Foundation have been active, through organizations like Emurgo Africa, in investing in and developing many different initiatives throughout awareness and educating programs.
As an example, with the release of Jelurida Africa’s “East Africa Blockchain Expedition,” for the first time in East African history, DLT experts were able to speak to locals about the potential benefits of blockchain and crypto in East Africa. Additionally, Cardano Foundation-based Emurgo Africa has invested in various initiatives that are aimed at spreading awareness and education globally.
Thanks to these efforts, a growing number of businesses around the region have begun to integrate this technology. Nigerian digital payments company InterSwitch and Senegal’s fintech firm Wave are among several mainstream businesses that have embraced the new technology. Other popular companies, like Adrian Labs, have also begun to work with emerging technologies, including blockchain and AI.
Africans are increasingly using cryptocurrency to use as payments and savings. The region has seen a surge in crypto adoption as multiple countries face regional challenges, such as inflation and devaluation of their local currency.
The Internet has been growing across the African Region in recent years, with many tech-savvy young adults using it. With Nigeria now ranking as the world’s most crypto-obsessed country and a Google search score of 371 as its latest report shows, Finbold predicts that cryptocurrency adoption may continue to grow there.
There has been an increase in demand for digital currencies, led by Africa and Latin American countries. Over 70% of participants in these regions have heard of cryptocurrencies and 20% own it as a hobby.