Crypto adoption has been increasing in several African countries thanks to residents who are willing to integrate digital assets into their financial engagements.
Venture Capital (VC) investors are betting on the crypto sector’s future. During the first three months of this year, VC investors put $91 million into blockchain companies, a number that grew to $213 million in the second quarter.
According to Nation, in the first half of 2022, African blockchain companies attracted almost $304 million in funding, which tripled the 2021 funding of $127 million. Moreover, the Pan-African crypto exchange Mara has raised $23 million, while the Jambo startup raised $30 million.
Despite the record funding, Africa still only accounted for 0.5% of the total blockchain founding around the world in the first half of 2022. In addition, African Blockchain Report noted that the crypto sector is forced onto the continent by the region’s economic challenges.
“The lack of common legacy financial systems and an enormous population, primarily unbanked, all contribute to the popularity and growth of cryptocurrencies on the continent,” said the report.
Despite the rise of crypto investors in Africa, the regulatory approach of most countries remains vague. Therefore, countries like South Africa announced a plan of regulation and integration of the sector into the mainstream financial system.