Africa: Three African countries identified by Google as a springboard for cryptocurrencies on the continent
Nigeria, Cameroon, and Ivory Coast : Top Google Searches for “Crypto” in the Last 7 Days.
Nigeria, Cameroon, and Ivory Coast have emerged as the top three global champions in Google searches for the term “crypto” over the past 7 days, according to data on information query trends provided by Google. While Nigeria has historically been the African country where cryptocurrencies are most ingrained in habits, Cameroon and Ivory Coast are newcomers to this level of ranking.
The increased Google searches on cryptocurrencies in these three countries coincide with a major development in this field. The U.S. Securities and Exchange Commission (SEC) has given its permission for investors to include Bitcoin in their savings plans.
This decision is likely to impact the global cryptocurrency market and could potentially influence dynamics in Africa. Although cryptocurrencies are not strictly regulated in the CEMAC and UEMOA zones, they are not prohibited either. Authorities in both sub-regions have issued warnings, urging savers to exercise caution.
In Cameroon and Ivory Coast, the cumulative number of people using or holding bitcoins reached 1.4 million, according to a report published in December 2022 by the Moroccan think tank Policy Center of the New South. Both countries now have providers of cryptocurrency services.
A notable example is Ejara, a Bitcoin transaction startup founded by Cameroonians, which raised $8 million in 2022, according to the private financial transactions journal in Africa.
Interest in cryptocurrencies and crypto-assets will continue to evolve based on national contexts. Nigeria, facing volatility and devaluation of its national currency, sees an increase in interest in cryptocurrencies that could serve as a safe haven asset against inflation and naira volatility. In contrast, in the two francophone countries benefiting from a stable currency, Bitcoin mainly attracts a youth seeking quick gains.
The current overall valuation of cryptocurrencies ($1.748 trillion as of January 12, 2024), dominated at 52% by Bitcoin, continues to grow since reaching its lowest level in December 2022 ($780 billion). The current progression, far from spontaneous, is due to the active support of large global fund managers such as the American BlackRock, contributing to bringing more stability to the sector.
This renewed interest observed in Nigeria, Cameroon, and Ivory Coast may signal a new phase in the evolution of cryptocurrencies on the continent. It will be essential to continue monitoring regulatory developments in the countries concerned and assess the impact of these new financial products on various monetary strategies and efforts against financial crime.
