The adoption of cryptocurrency in Africa presents both opportunities and challenges. It offers the potential for financial inclusion, cross-border transactions and economic growth, particularly in regions with limited access to conventional banking services. However, there are inherent risks, including price volatility, regulatory uncertainty and the potential for fraud. The long-term impact will depend on government regulations, infrastructure development and public education on crypto use and security. Whether it proves a revolution or a risk remains to be seen, but it is undeniably a significant financial trend across the continent.
Between July 2023 and June 2024, Sub-Saharan Africa received an estimated $125 billion in on-chain cryptocurrency value, an increase of $7.5 billion compared to the previous year. Nigeria alone accounted for approximately $59 billion, ranking second globally for crypto adoption. The region’s activity is largely retail-driven, with about 85% of transactions under $1 million, suggesting widespread grassroots engagement.
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Stablecoins, particularly those pegged to the US dollar, have become vital for cross-border payments, offering a cost-effective and reliable alternative to traditional remittance channels. In Nigeria, stablecoins represent around 43% of all stablecoin inflows in Sub-Saharan Africa.
A youthful population is further propelling this growth. Over 56% of Africa’s population is under 25, with many turning to crypto not just as an investment but for everyday transactions and entrepreneurship. Telegram-based crypto communities have surged by 189% since early 2023, adding more than three million members and highlighting the continent’s enthusiastic embrace of digital finance.
Nigeria: The Epicentre of Crypto Activity
Nigeria’s adoption of cryptocurrency is both widespread and multifaceted. Despite past regulatory hurdles, the country has emerged as a global leader in crypto usage. Routine activities such as paying bills, topping up mobile phone credit and retail purchases are increasingly facilitated through crypto.
The Central Bank of Nigeria recently lifted restrictions on banks processing cryptocurrency transactions, acknowledging the rising demand and potential of digital assets. This policy shift aims to integrate crypto into the formal financial system while maintaining regulatory oversight.
However, the regulatory landscape remains complex. In 2025, Nigeria filed a lawsuit against Binance, seeking $79.5 billion in compensation for economic losses and $2 billion in back taxes over two years. The government claims Binance’s operations contributed to economic instability, especially the depreciation of the naira.
Kenya and Ethiopia: Different Paths to Digital Finance
Kenya, often dubbed the “Silicon Savannah”, has a rapidly growing crypto user base projected to reach 733,300 by 2025. The country’s mobile money infrastructure, epitomised by M-Pesa, has enabled seamless integration of crypto into daily financial transactions. Cryptocurrencies offer Kenyans a cheaper, faster and more accessible alternative to traditional banking, particularly for remittances.
Ethiopia has taken a different approach, focusing on blockchain infrastructure. In February 2024, Ethiopian Investment Holdings partnered with Hong Kong-based West Data Group in a $250 million initiative to develop Bitcoin mining and AI infrastructure. By October, Ethiopia contributed 2.25% of the global Bitcoin hash rate, powered by 600 megawatts of energy from Ethiopian Electric Power. This strategic move positions the country as a potential leader in Africa’s digital future.
South Africa: Bridging Traditional Finance and Crypto
South Africa’s crypto market features a blend of retail enthusiasm and institutional interest. The country received approximately $26 billion in cryptocurrency over the past year, with notable growth in high-value transactions. Financial institutions such as Absa Group are exploring digital asset custody services, aiming to connect traditional finance with the crypto ecosystem.
Retail adoption is also increasing. Over a six-month period, transaction volumes rose by 26.5%, with users, primarily aged 18 to 34, using crypto for online shopping, travel and in-store purchases. This trend signals the growing integration of crypto into daily life.
Risks and Regulatory Responses
While crypto offers significant advantages, it also presents notable risks. The decentralised nature of digital currencies makes them vulnerable to fraud. Interpol’s Operation Serengeti, spanning 19 African countries, resulted in 1,006 arrests and uncovered 35,000 victims, with financial losses nearing $193 million. In Nigeria, hundreds were apprehended in connection with crypto-romance scams, underscoring the darker side of digital finance.
Regulatory responses across Africa vary. Morocco is preparing legislation to regulate cryptocurrencies, seeking a balance between innovation and financial stability. Nigeria has moved to tax cryptocurrency trading and digital assets, formally integrating them into the national economy. These measures reflect a wider trend of governments attempting to harness crypto’s benefits while managing its risks.
Ghana, Rwanda and Egypt: Regional Crypto Pioneers
Beyond the continent’s crypto leaders, other African nations are making notable progress.
Ghana has emerged as a digital finance hub in West Africa. With inflation reaching 42.5% in 2023, many Ghanaians turned to crypto to hedge against the depreciating cedi. Chainalysis ranked Ghana seventh in Sub-Saharan Africa for crypto adoption in 2024. Start-ups like BitSika have facilitated over $40 million in cross-border payments, offering users a stable digital alternative to volatile fiat currencies.
In East Africa, Rwanda is exploring blockchain’s role in improving transparency and governance. While crypto trading is still in its infancy, pilot programmes for blockchain in land registration and medical records are laying a foundation for future integration.
Egypt, the Arab world’s most populous nation, has witnessed rising crypto interest despite strict financial regulations. In 2023, the Central Bank of Egypt initiated consultations on a central bank digital currency and partnered with the Arab Monetary Fund to explore crypto’s role in financial inclusion. Remittances from Egypt’s diaspora, totalling $31.5 billion annually, are increasingly processed through informal crypto channels due to high banking fees and currency instability.
Expert Analysis: Crypto’s Role in Tackling Inflation
Experts stress crypto’s strategic value in inflation-prone economies. The World Bank estimates that 41% of Sub-Saharan Africans lack access to formal banking, yet nearly 60% own mobile phones. This disparity has enabled many to bypass traditional finance in favour of decentralised finance.
In hyperinflation-hit countries like Zimbabwe, Bitcoin is increasingly seen as a store of value. As African financial systems remain volatile, crypto’s use as a hedge against inflation is likely to grow.
Regulatory Frameworks: Balancing Innovation and Stability
South Africa has taken a pioneering regulatory stance. In 2023, the Financial Sector Conduct Authority (FSCA) mandated that crypto firms acquire licences to operate legally. By 2024, more than 60 platforms had applied, marking a shift towards structured governance. The FSCA’s approach is seen as a potential model for other African nations.
Nigeria’s Securities and Exchange Commission launched a Regulatory Incubation Framework for fintechs, including crypto start-ups, allowing innovation under regulatory guidance. Meanwhile, the African Union backs the Pan-African Payment and Settlement System (PAPSS), launched in 2022, to enable instant cross-border payments using local currencies. Though not crypto-native, PAPSS could integrate with blockchain platforms in the future.
The Role of Crypto Start-ups in Africa
Crypto start-ups are becoming increasingly influential. Yellow Card, active in over 16 African countries, enables fiat-to-crypto trading and has processed more than $3 billion in transactions. Although now defunct, Bundle Africa played a key role in promoting social-based crypto finance among Nigerian youth. Luno, a South African exchange owned by DCG, boasts over 10 million users across Africa and is a major force in crypto education.
Yet the education gap remains a challenge. Chainalysis reports a 10% decline in crypto scams year-on-year due to rising awareness, but phishing and Ponzi schemes still cause millions in losses. This underscores the need for public education and safer platforms.
As Africa advances towards its digital future, the cryptocurrency question is no longer “if” but “how”. With youth-led adoption surging, regulatory frameworks emerging and innovation driven by the private sector, the continent’s crypto landscape is evolving into a test case for global financial transformation. Whether this marks a revolutionary shift or a high-risk gamble will depend on the choices made today.
