For many years now, the general consensus on Bitcoin is how it is perfectly suited for African nations. At the same time, overall interest in cryptocurrencies is very difficult to measure in those regions. New P2P trading volume statistics confirm something appears to be brewing in several sub-Saharan regions.
A Spike in P2P Bitcoin Volume in Sub-Saharan Africa
It is always great to see Bitcoin become of great interest in more countries than ever before. This global form of money is designed for the people of this planet, rather than the governments and central banks. On paper, it would be an invaluable tool in regions where access to financial services and products is limited first and foremost.
In several sub-Saharan countries, the global interest in Bitcoin has increased significantly, Since the year 2020 began, P2P trading volumes have increased by several magnitudes. This further confirms it is not an isolated incident, nor a bug in the data being reported. Although not all countries are noting an increase in volume, the overall trend appears to be far more outspoken compared to 2019.
Bitcoin is having a huge year in Africa.
P2P volumes keep hitting ATHs (up 2.5x since March), and Nigeria's Naira just broke $10 million USD of volume last week.
That's more than any other fiat currency (except USD), and twice as much volume as the Venezuelan bolivar.
Wake up. pic.twitter.com/2qO0pR4DTH
— Kevin Rooke (@kerooke) July 14, 2020
Looking at the charts, big changes are recorded in Nigeria, South Africa, Kenya, Ghana, Zambia, Botswana, Malawi, Ethiopia, and Mozambique. All of these countries show a strong increase in P2P volume throughout 2020. It is also worth noting that, in these regions, Bitcoin is traded against domestic currencies.
XAF and XOF Volume Trends Higher
Several other countries in West and Central Africa rely on a unified currency.
For the independent states in Central Africa – Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon – the Central Africa CFA Franc, of XAF, is utilized.
The West African CFA Franc, or XOF, is utilized in the independent states of Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo.
Not only is this currency system incredibly fascinating, it is also relevant to P2P Bitcoin trading.
Glancing at the statistics, P2P Bitcoin trading against both the XAF and XOF has been on the rise since early 2020. Primarily the XOF volume is impressive, as it seems more sustainable, The XAF market has noted one sharp peak, although the overall volume remains more than decent.
More Room for Growth
When looking at the bigger picture, the P2P Bitcoin trading trend in Africa isn’t a surprise. The continent is home to a very fractured financial ecosystem. That only became even more apparent when mobile money was banned in Zimbabwe. As such, alternatives have to be found. Bitcoin can be of incredible value in this particular regard.
While it is not the same as mobile money, it is a way to achieve financial freedom. Using Bitcoin doesn’t rely on banks or mobile service providers in the slightest. For some, it may be an even better form of money than anything else they can access today.
An impressive growth trend, further validating the potential of cryptocurrencies in sub-Saharan Africa.