- The 880 percent increase has been attributed to increased peer-to-peer transaction volume in emerging economies.
- Binance has managed to educate over 350,000 Africans on the basics of crypto this year.
Cryptocurrency adoption has been on the rise in recent months. A Chainalysis report reveals that in 2021 global crypto adoption was 880 percent higher than last year. This craze has been attributed to increased peer-to-peer trading and the use of cryptocurrencies such as Bitcoin as a store of value.
Mainstream adoption in emerging economies
Comparing data on cryptocurrency adoption over the last two years, we are able to note a distinct increase in crypto use in emerging economies. In 2020, according to Chainalysis’ Global Crypto Adoption Index, Ukraine, Russia, Venezuela, China, and Kenya were the top five in terms of crypto adoption. The bottom half was occupied by Tanzania, Afghanistan, Nigeria, Colombia, and Vietnam. In 2021 however, the top four slid down the list, with new entries from India, Ghana, and Russia. China in particular exited the list largely owing to the government’s recent crackdown on the crypto industry and advancements in the development of a CBDC.
The report also points out that peer-to-peer transaction volume for smaller countries was higher than that of the U.S and China. Chainalysis attributes this increase in peer-to-peer trading to the global financial crisis arising from the Covid-19 pandemic. Smaller economies are more negatively impacted than larger ones in terms of devaluation of their currencies and inflation. Many, therefore, turned to Bitcoin as a store of value.
Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell.
Binance trains over 350,000 crypto beginners in Africa in 2021
As evidenced by the adoption indices for 2020 and 2021, African countries are becoming increasingly receptive to cryptocurrency use. In line with its goal to increase blockchain adoption and accessibility, Binance continues to educate beginners in the industry. With the help of the Binance Academy, they have been able to educate ‘crypto newbies’ on the basics of blockchain technology and provide resources for long-term financial and career development.
Binance launched the Binance Masterclass in January 2020 with a focus on helping beginners avoid cryptocurrency scams. The program, through webinars, has so far provided free education on cryptocurrencies to more than 400,000 Africans. Subjects range from fundamentals of cryptocurrency to identifying scams and securing crypto.
The Masterclass was taken by over 70,000 Africans last year. There has been a marked increase in 2021. Around 177,000 took the Masterclass in the first quarter of this year, with a further 179,500 in the second quarter.
Emmanuel Babalola, Director at Binance Africa said,
Blockchain education is at the heart of our focus in the global market. As a blockchain infrastructure provider, we are committed to ensuring that more and more people have access to the right information about the workings of the ecosystem.
Africa is a very important market for Binance because we see the profound opportunity blockchain brings to the entire continent.