Peer-to-peer commerce is driving the digital currency revolution in Africa – Quartz Africa

Peer-to-peer (P2P) cryptocurrency exchange platforms are now driving growth as Africa leads the rest of the world in the adoption of virtual money.

Retail transfers account for a larger share of the continent’s cryptocurrency activity on the continent, with P2P enabling the convenient use of digital money.

In countries like Nigeria and Kenya, consumers have been documented buying products and services, as well as paying debts using digital currencies.

This remains a mirage in most of the Americas, Europe, and parts of Asia where cryptocurrency is still viewed as a highly speculative asset, or simply, the future of money.

P2P platforms are popular in Africa, especially for remittances and business transactions

Crypto’s biggest assault came recently when China launched a crackdown effectively banning cryptocurrencies in a move that rocked digital cash prices around the world.

The ban has had little impact on small-scale crypto investors in Africa, however, where most use P2P platforms to navigate legal and regulatory headwinds.

These platforms have struck a chord with users across the continent where consumers, particularly in Nigeria and Kenya, use them to bypass strict financial regulations that restrict money transfers from banks to crypto companies. cash.

Regulators in both states have advised banks not to allow these transfers, but P2P platforms, which are not custodians, allow customers to exchange money for cryptocurrency with each other.

“P2P platforms are particularly popular in Africa compared to other regions, and many African cryptocurrency users rely on P2P platforms not only as a cryptocurrency ramp. , but also for remittances and even business transactions, ”said a recent Chainalysis report.

Chinese citizens can therefore be inspired by Africans who use P2P to exchange cryptos.

The original version of this story has been republished with permission from bird, a story agency under Africa No Filter.

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