Cryptocurrency adoption has been on the rise in recent months. A report from Chainalysis reveals that in 2021 global adoption of cryptocurrencies was 880% higher than last year. This insanity has been attributed to the rise of peer-to-peer trading and the use of cryptocurrencies like Bitcoin as a store of value.
Widespread adoption in emerging economies
When comparing the data on the adoption of cryptocurrencies in the last two years, we can observe a marked increase in the use of cryptocurrencies in emerging economies. In 2020, according to the Chainalysis Global Crypto Adoption Index, Ukraine, Russia, Venezuela, China, and Kenya were the top five in terms of crypto adoption. The lower half was occupied by Tanzania, Afghanistan, Nigeria, Colombia, and Vietnam. However, in 2021, the top four slid down the list, with new entries from India, Ghana and Russia. China, in particular, was dropped from the list in large part due to the recent government crackdown on the crypto industry and advances in the development of a CBDC.
The report also notes that the volume of peer-to-peer transactions for smaller countries was higher than that of the US and China. Chainalysis attributes this increase in peer-to-peer trading to the global financial crisis stemming from the Covid-19 pandemic. Smaller economies are more negatively affected than larger ones in terms of currency devaluation and inflation. Many, therefore, turned to Bitcoin as a store of value.
Many emerging markets face significant currency devaluation, leading residents to purchase cryptocurrencies on P2P platforms to preserve their savings. Others in these areas use cryptocurrency to conduct international transactions, either for individual remittances or for business use cases, such as buying goods to import and sell.
Binance trained more than 350,000 crypto beginners in Africa in 2021
As the adoption rates for 2020 and 2021 demonstrate, African countries are becoming increasingly receptive to the use of cryptocurrencies. In keeping with its goal of increasing blockchain adoption and accessibility, Binance continues to educate newbies to the industry. With the help of the Binance Academy, they have been able to educate 'crypto newbies' on the basics of blockchain technology and provide resources for long-term financial and career development.
Binance launched the Binance Masterclass in January 2020 with a focus on helping beginners avoid cryptocurrency scams. The program, through webinars, has so far provided free cryptocurrency education to more than 400,000 Africans. Topics range from crypto fundamentals to identifying scams and protecting cryptocurrencies.
The Masterclass was taken by more than 70,000 Africans last year. There has been a marked increase in 2021. Around 177,000 took the Masterclass in the first quarter of this year, with 179,500 more in the second quarter.
Emmanuel Babalola, Director of Binance Africa said:
Blockchain education is at the heart of our focus on the global market. As a blockchain infrastructure provider, we are committed to ensuring that more and more people have access to the correct information about the functioning of the ecosystem.
Africa is a very important market for Binance because we see the great opportunity that blockchain brings to the entire continent.