Report: Kenya Set to Scale Up Adoption of Cryptocurrencies in 2022

According to Marius Reitz (general manager) of Luno cryptocurrency exchange, Africa, Kenya will lead the peer-to-peer cryptocurrency market in the world for the second year running.

The GM quotes a report to justify his choice of Kenya over the other heavyweights. He also points out Kenya’s booming cryptocurrency market and Kenyans’ familiarity with digital payments solutions.

According to Reitz, the report explains that “the country’s crypto sector is booming with an emerging crop of companies creating blockchain-based solutions” and that, given its young population, high heels in mobile connectivity, and familiarity using digital payment solutions such as mobile money, it is well positioned to emerge East Africa’s top crypto hub by 2022. News previously reported on Kenya’s surge in peer-to-peer cryptocurrency volumes. This had seen South Africa fall to make Kenya the country with the highest P2P volumes.

Cryptos as an alternative currency

Reitz was quoted in the report as explaining the difficulties that African companies face when trying to access foreign currencies from formal markets. Reitz predicts that these companies based in Africa will have to look towards cryptocurrencies for cross-border transactions.

Reitz, however, is mentioned in the report as warning that any real progress in this field will depend on regulatory progress. He stated:

Like most areas of the crypto industry progress will depend on a favorable regulatory climate. If this happens, cryptocurrencies could become a significant asset to companies that have extensive operations in Africa.

Reitz reiterated his belief, despite these and other obstacles, that Africa is better positioned to adopt cryptocurrency than other continents.