Nigeria leads the world in crypto ownership, according to ConsenSys’ second annual Global Survey.
The report indicated that emerging markets like Nigeria and South Africa are driving the global adoption of cryptocurrencies.
The percentage of ownership is highest in the Philippines (54%), South Africa (68%), and Nigeria (73%).
These countries are at the forefront of notable interest in cryptocurrency-related awareness, ownership, and engagement.
According to the survey, 51% of respondents say they understand crypto assets and 93% of respondents worldwide are aware of them.
Additionally, these countries have shown a strong interest in Web3 activities, such as staking, utilizing decentralized finance (DeFi), and holding NFTs.
Eighty per cent of Nigerian respondents were aware of decentralization, and 77% correctly defined blockchain. In addition, 74% of respondents from South Africa said they were familiar with the concept, compared to 61% of those from the Philippines.
The survey also reveals enduring obstacles to entry, despite the increasing interest in cryptocurrency in these regions. Concerns about scams, market volatility, and a lack of understanding of its purpose are common worldwide.
Respondents from emerging markets have shown a willingness to accept virtual currencies despite these difficulties and barriers.
Seventy-five per cent of those surveyed expressed concern about artificial intelligence’s (AI) potential to spread fraud and create fake news, highlighting that blockchain may be crucial in resolving these issues.
Blockchain could offer the accountability and transparency required to counteract AI-driven disinformation, according to roughly 54% of participants worldwide.
Speaking about the survey’s findings on the growing significance of data privacy, Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, stated: “It is impossible to overestimate the crucial role that blockchain technology and decentralization play in improving privacy, trust, and transparency in the way our data is handled.
“The adoption of Web3, blockchain, and cryptocurrency has accelerated recently, with 2024 being a key year.”
He clarified that this growth is partly due to the recent U.S. presidential election, which might result in more transparent regulations for the sector.
Nigeria: A Unique Crypto Market
Nigerians have been drawn to the digital world in hopes of making a living as the real economy struggles with high youth unemployment and astronomical food inflation.
- Chainalysis, a New York-based company that tracks blockchain use, estimated that 33% of Nigerians currently invest in cryptocurrencies, placing the country second in global adoption, after India.
- Nigerians living abroad use crypto assets to send money to their families back home, avoiding the hassles and exorbitant fees associated with traditional remittance methods.
- However, Nigerian policymakers have been concerned about the appetite for cryptocurrencies, which are transnational by nature. They claim that instead of resolving Nigerians’ problems, the country’s move toward cryptocurrencies has weakened their ability to govern and further harmed the struggling naira.
These obstacles haven’t deterred President Tinubu’s administration from using a carrot-and-stick approach. While the Nigerian SEC has theoretically regulated a few local cryptocurrency exchanges, at least three well-known cryptocurrency companies have left the Nigerian market this year.
Bitcoin Bullish Run
- Bitcoin surged to a new all-time high, reaching as high as $106K on Monday morning as investors anticipated a rate cut by the Federal Reserve later this week.
- Bitcoin is now up 50% since the U.S. elections and almost 8% for the month since Trump’s victory, with a year-to-date gain of 145%.
- Digital assets continue to benefit from the prospect of a more favorable regulatory environment and the potential creation of a national strategic bitcoin reserve under the incoming Donald Trump administration.