Why Sub-Saharan Africa leads in crypto adoption despite fragile markets
Sub-Saharan Africa may account for only a small slice of global cryptocurrency transaction volumes, but its adoption rates are among the highest in the world.
Driven by grassroots needs rather than speculation, the region is emerging as a proving ground for how digital assets can address economic instability, high remittance costs, and limited access to traditional banking.
Between July 2023 and June 2024, Sub-Saharan Africa received an estimated $125 billion worth of cryptocurrency on-chain transactions, according to blockchain analytics firm Chainalysis. While this represents just 2.7% of global transaction volume, countries like Nigeria, Kenya, and South Africa consistently rank in the top 20 worldwide for grassroots adoption.
The demand is fueled by practical use cases: remittances from abroad, protection against local currency depreciation, cross-border trade, and access to stablecoins as a hedge against inflation. In Nigeria, for example, stablecoins accounted for nearly 40% of crypto transaction volume in 2024, far above the global average.
Why crypto is catching on
Sub-Saharan Africa faces some of the highest remittance costs in the world, averaging over 8% per transaction for money sent home from abroad. Crypto payments can slash these fees to under 2%, making them attractive to both senders and receivers.
Local inflation and currency volatility also play a role. In countries like Ghana and Nigeria, steep devaluations have eroded purchasing power, prompting individuals and small businesses to seek stablecoins pegged to the U.S. dollar. For many, crypto wallets accessed through mobile phones serve as a first form of “bank account.”
Despite its popularity, cryptocurrency operates in a fragmented regulatory environment. An IMF survey found that only 25% of Sub-Saharan African countries have comprehensive legislation for crypto assets, while others enforce partial restrictions or outright bans.
Nigeria’s case is illustrative. The central bank once prohibited banks from servicing crypto-related accounts, but in 2023 began to roll back restrictions in favour of regulated exchanges and digital asset licensing.
While crypto brings financial inclusion opportunities, it also comes with volatility risks, fraud concerns, and dependence on foreign-controlled platforms. Experts warn that without robust consumer protection frameworks, vulnerable users could face significant losses.
Internet access and digital literacy remain barriers. According to the GSMA Mobile Economy Report, about 40% of Sub-Saharan Africans are still offline, limiting who can participate in the crypto economy.
From small traders in Lagos to freelancers in Nairobi, millions are using digital assets to solve everyday financial problems.
This story is written and edited by the Global South World team, you can contact us here.
