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Crypto Business Growing in Africa as Demand Surges

Africa

Trading

Last updated: June 26, 2023 06:53 EDT

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Tim Alper

Author

Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 26, 2023 06:53 EDT

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Cryptocurrency trading is on the rise in Africa, with young, South African university graduates leading the charge.

Paxful, a leading South African peer-to-peer P2P cryptocurrency marketplace has claimed that half of its customers are under 30, and that the majority are university-educated males.

Per South African media outlet Business Report, the platform says that its customers are conducting over USD 38 million worth of transactions per month on its network. 70% of the company’s clientele have a tertiary qualification or are studying for a post-school qualification, it says, while there is a 65:35 male to female split.

Paxful also claims that cryptocurrencies are mainly purchased by bank transfers or gift cards in African countries.

According to Forbes contributor Rakesh Sharma, some 15 cryptocurrency-related operations began in Africa in the past year. And Rwanda’s New Times points out that the South Africa-based Luno Exchange, which was established in 2013 and now has 1.5 million customers in over 40 countries worldwide, was the first major exchange platform to be based on the continent.

Last month, South African investment management firm Sygnia announced that it intends to launch a cryptocurrency exchange in the third quarter of 2018, responding to an increased demand for crypto in the country.

The New Times also quotes an official at ICOWatchlist.com as stating that Zimbabweans and citizens of other African countries are choosing to trade in cryptocurrencies “as opposed to their local currencies, which are plagued with hyperinflation.”