In his prediction of the African crypto market for this year, Marius Reitz, managing director of Luno in Africa, speculated that Kenya would increase the adoption of cryptocurrencies. To back up this claim, Reitz points to Kenya’s position as the world leader in volumes traded. peer to peer (P2P) for the second consecutive year.
The cryptocurrency market is booming in Kenya
Kenya is expected to lead the global market peer to peer cryptocurrency for the second consecutive year, Marius Reitz, managing director of the Luno exchange platform in Africa, would have predicted.
To justify its selection of Kenya, in its report, the official highlighted the development of the booming crypto market in the East African country as well as the familiarity of Kenyans with digital payment solutions.
“The country’s cryptocurrency industry is booming with an emerging culture of companies creating blockchain-based solutions and given its young population, mobile connectivity and familiarity with digital payment solutions. like mobile money, it is firmly positioned to become East Africa’s leading crypto hub in 2022.”, explains Reitz in the report.
Recently, we could see the increase in the volumes of trading peer to peer in Kenya, which had overturned South Africa. The country is thus ranked second in terms of the highest P2P transaction volumes in Africa. This growth has shown the government the need for clear and precise regulations.
Cryptocurrency is an alternative
As well as predicting Kenya’s continued dominance in the crypto market peer to peer, in his report Reitz revealed the persistent difficulties faced by African companies wishing to access foreign currencies from formal markets. He predicts that these Africa-based companies will be forced to “to turn to cryptocurrencies to use them as an alternative means of managing cross-border transactions”.
However, in the same report, Reitz warns that real progress in this area also depends on progress in proper regulation. He noted:
“As with most aspects of the cryptocurrency industry, progress in this area will be highly dependent on a supportive regulatory climate. If the regulatory framework materializes, cryptocurrencies could become a major asset for companies with extensive operations throughout Africa. “
Despite these and other various hurdles, Reitz has always reiterated his belief that Africa is better positioned to adopt cryptocurrencies than other continents.
The scale of the cryptocurrency industry is currently reaching the leading countries in the cradle of mankind. Africa has enormous human resource potential as well as open ground to implement the very early stages of technological innovations. With fair and precise regulation, the entire continent could benefit from the power of blockchain technology and digital assets.
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