With over 50,000 Bitcoin users, Kenya is a prime market for cryptocurrencies. The country has a relatively large Bitcoin owner base, which is above average when compared to the global average. However, there is much uncertainty surrounding the future of the Altcoin market in Kenya. Here are some things to keep in mind:
Ethereum is the second largest cryptocurrency
While the world has noticed the rise of cryptocurrencies and the potential for growth, various African nations are still not completely on board. Despite this, the continent has taken a few steps to better understand the concept and its applications. The creators of Ethereum have launched an initiative to expand their reach to Africa. They have also encouraged other innovators and investors to start programs in the continent.
However, many governments are not on board with cryptocurrencies and have issued warnings about their volatility and potential for criminal activity. Some countries have banned cryptos altogether while others have made them legal but warned their citizens about the risks. In Kenya, the government is urging people to exercise caution when using cryptocurrency.
Bitcoin is the most popular altcoin
Cryptocurrency is a growing trend in Kenya, and Kenya has been one of the fastest growing markets for cryptocurrencies in the world. According to UNCTAD, Kenya ranks fifth in the world in crypto adoption, with 8.5% of the population currently owning cryptocurrencies. That’s a lot higher than the US, which only has 8.3% of its population using crypto. If you want to invest in crypto, you should look into a trusted Kenyan exchange like CoinSmart. It has low fees and allows you to withdraw your funds whenever you like.
Ndemo’s research reveals that over one-third of adult internet users in Kenya have a cryptocurrency. This number is higher than the global average of 39.1%, meaning that thousands of Kenyan traders have invested in a currency that is underperforming. Kenya ranks 12th in the Finder’s Cryptocurrency Adoption Index, behind Nigeria and Ghana.
Akoin is a private stablecoin
Akoin is a cryptocurrency powered by a marketplace for tools and services across Africa’s rapidly-growing economies. The project, led by global artist Akon, is a step towards making the continent more inclusive. The currency is already proving successful in Western Kenya’s Mwale Medical and Technology City. The team is now poised to take the concept national.
In Kenya, the adoption of digital assets has increased exponentially. The country has a mobile penetration rate of more than 90%, with over 39 million subscribers and a 40% uptake of smart phones. From January to June 2021, mobile money transactions in Kenya reached $30.3 billion. This represents a 52% increase from the same period in 2020. This is due to increased e-Commerce services and a shift away from cash-based payments.
Bitcoin ownership in Kenya is above the global average
A recent survey conducted by Knight Frank showed that the rate of young wealth creators in Kenya is 27 percent higher than the global average, with many under 40 years old making fortunes in bitcoin and other emerging technologies. This growth is largely due to an increased level of entrepreneurship among Kenya’s wealth creators.
Kenya’s central bank is looking into CBDC, but there is still a lack of regulatory framework. Meanwhile, Morocco has banned cryptos and has stated that it does not support hidden payment systems.
Central banks are evaluating the pros and cons of central bank digital currencies
There is still much debate surrounding whether central bank digital currencies can truly replace fiat currencies. However, some experts believe that such a move is possible, and some countries are pursuing it. The Bank of the Lao PDR, for instance, has said that it will explore the possibility of retail CBDC in 2020.
A CBDC is a digital representation of central bank money and offers unique features not found in traditional fiat currencies. Such a digital asset could serve as the backbone of an efficient digital payment system. In addition, CBDCs offer strong data governance and privacy standards based on digital ID. Moreover, if successful, they can enable efficient cross-border payments. They may also counter foreign currency substitution and strengthen monetary sovereignty.