The rate of digital currency adoption in Kenya is unlike any other country in Africa.
The United Nations reports that Kenya has the highest proportion of its people holding cryptocurrencies in Africa, highlighting the country’s exposure to the unfolding digital currency market crash.
According to a research done by the United Nations Conference on Trade and Development (UNCTAD), around 4.25 million Kenyans, or 8.5% of the population, possess digital assets.
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This puts the African nation ahead of industrialized economies such as the United States, which ranks sixth with 8.4% of its population holding crypto assets.
Peer-to-peer (P2P) cryptocurrency trade volume in Kenya is the world’s highest, while overall transactions in the country rank sixth. In terms of blockchain-related transactions and cryptocurrency holdings, it is the top-ranking African country among the world’s 10 most populous nations.
Image: People Daily
Kenya Massive BTC Holdings
Kenya’s Bitcoin holdings reached more than 3% of the country’s gross domestic product in January 2018, a significant figure considering that 10 nations had a comparable level of GDP invested in digital assets.
Kenya has had extensive exposure to digital assets for years. In 2020, as a result of the worldwide health crisis, distressed inhabitants of the nation resorted to localized cryptoassets for support with their financial difficulties.
In recent years, the use of Bitcoin in African nations has expanded substantially. This is when many Africans recognized the genuine benefits of cryptocurrencies.
African countries are among the top countries in terms of Bitcthe oin acceptance, according to a report from Arcane research. Among the top African countries are South Africa, Nigeria, Uganda, Ghana, and Kenya.
Bitcoin As Reserve Currency
According to UN data, Ukraine leads the world with 12.7 percent of its inhabitants exposed to cryptocurrencies, followed by Russia with 12 percent. Singapore and Venezuela round out the top 5 with respective rates of 9.2% and 10.3%.
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Crypto total market cap at $886 billion on the daily chart | Source: TradingView.com
Since November of last year, the crypto market, notorious for its dramatic price fluctuations, has lost over 50 percent of its value as investors fled unstable assets out of concern for skyrocketing inflation and mounting interest rates.
Meanwhile, the Central Bank of Kenya has decided to adopt the crypto as its reserve currency. According to media sources, the bank’s decision stems from its initiatives to tackle the rising financial crisis in the nation.
Governor of the Central Bank Patrick Njoroge stated that the decision was made after evaluating a variety of circumstances, including a lack of foreign currency reserves and an increase in money transmissions.
Featured image from Commisceo Global, chart from TradingView.com