Cryptocurrency is still a relatively new concept in the African continent compared to other means of exchange. Despite this, the technology has enjoyed widespread adoption in the continent despite it still being early days. 

The African market has proven to be a promising one going by the flurry of local and foreign investors interested in building products that cater to the continent’s demand. 

The crypto surge in Africa can be attributed to a combination of things, one is the series of crypto success stories in the continent especially by early backers of crypto assets like Bitcoin. Other factors include Crypto being perceived as a viable investment alternative and as a hedge against failing local currencies in the continent. 

This combination of factors led to a surge in general interest in cryptocurrency in Africa with countries like Nigeria taking the lead. 

In this CryptoClock article, we are going to outline the top 5 African countries by crypto adoption and the use cases driving the adoption in the continent. 

Top 5 African Countries by Crypto Adoption 

1) Nigeria 

Nigeria is the African country with the highest crypto adoption and the second largest in the world. According to Yellowcard a leading African exchange and trading platform, Nigeria leads with a staggering 66.78% share in crypto interest. 

Nigeria according to a 2024 study by Chainalysis is also the second highest country by crypto adoption in the world. Cryptocurrency in the country is very popular among the young generation and is increasingly used as a hedge against the failing local currency. 

Despite the high rate of crypto adoption in the country, the industry is still faced with steep challenges ranging from lack of regulatory clarity to outright ban of crypto entities. The world’s largest crypto exchange Binance is currently locked in a trade spat with Nigerian authorities leading to one of its executives being detained for 7 months. 

Crypto platforms like OKX and Kucoin have also folded operations in the country. 

2) South Africa 

The country with the second highest crypto adoption in Africa is South Africa. According to Yellow Card’s blog post, the country has a general interest of 8.36% in cryptocurrencies. 

According to Chainalysis 2024 report South Africa has established itself as one of the continent’s largest cryptocurrency markets, receiving approximately $26 billion in value over the past year. South Africa is seeing notable growth in licensed companies and increased institutional-sized activity. 

South Africa is also home to top Crypto events thanks to Bitcoin Events co-founded by Sonya Khunel. Another such big event Crypto Fest is held later in the year in Cape Town South Africa. 

3) Morocco 

Morocco is the third African country with the highest rate of crypto adoption. The country has a general interest rate of 5.43% and is the only North African country on our list today. 

Cryptocurrency in Morocco despite its high rate of adoption is facing steep challenges similar to that of Nigeria. 

Morocco was the first North African country to ban crypto in 2017. In 2022, the government made strong efforts to create a regulatory system for crypto businesses in the country. Despite the challenges 5.43% of the total Moroccan population are crypto literate and hold cryptocurrencies. 

4) Ghana 

Ghana is the fourth African country with the highest rate of crypto adoption. Ghana is the second West African country on our list and has a general interest rate of 5.24%. 

Cryptocurrency in Ghana is not without its challenges. For a very long time, Cryptocurrencies were not legal tender in Ghana. The Bank of Ghana (BOG) banned the transaction of crypto assets in the country and stated that anyone in the business of transacting in cryptocurrency is doing so at their risk.

However, things changed slightly after the Bank of Ghana (BoG) on 16 August, unveiled guidelines proposing rules, which follow an in-depth review of the digital assets landscape. 

These new guidelines are designed to bolster innovation in the financial market whilst reining in the potential risks posed by crypto assets such as money laundering and terrorism financing, fraud, cyber theft, and consumer protection issues. 

The new nod by the Bank of Ghana indicates that crypto adoption in the country is on the verge of surging to higher grounds. 

5) Kenya 

Kenya is the fifth African country with the highest rate of crypto adoption and the only East African representative in our list. Kenya leads the East African part of the continent in crypto adoption and is the fifth highest in all of Africa. 

Despite its impressive rate of adoption, the crypto industry in Kenya is still massively unregulated, and crypto assets are not recognized as a form of currency in the country. 

In Kenya, the regulatory authorities are more tilted to recognizing crypto assets as a security and not another form of money. 

There is also a 15% tax rate in all transactions involving crypto assets in the country.