It Is Observed That Nigeria And Kenya Are The Target Markets For P2P Cryptocurrency Exchanges in Africa
Cryptocurrency exchanges are viewing African countries. Will they succeed? More needs to be studied to determine the results of target markets.
The Cryptocurrency Space In The African Continent
As evidenced by their ongoing forays into the continent, leading cryptocurrency exchanges are bullish about Africa’s growth prospects. It was observed as the crypto exchange had announced the addition of Nigeria’s naira currency along with Kucoin as a payment option on the peer-to-peer platform during the month of August. Also, there was the Binance some five months after adding the naira option as it added Kenya’s popular mobile money service Mpesa to its peer-to-peer platform in the past week.
Already supporting multiple payment options is Paxful which has had success on the continent. Similarly supporting multiple payment options is Local.Bitcoin.com the bitcoin cash peer-to-peer exchange using a blind escrow
Kucoin and Binance are reportedly planning the addition of more African currency payment options as they look forward to expanding their foothold on the continent in the meantime. Currently, it appears that the peer-to-peer crypto trading is therefore now the favoured approach by the major exchanges and seeking to tap into the African market from the few examples mentioned above.
As there are no fiat on-ramps, many countries on the continent appear to be primed for mass crypto adoption whereas on the surface it has not happened. As they help potential users of digital assets to switch from fiat to crypto seamlessly, ideally such on-ramps are necessary. With the effect of dissuading interested users from buying, is the absence of such on-ramps. Here it is observed that the adoption of digital assets is slowed down as well as the growth of the space.
Peer-To-Peer Crypto Trading Scenario
Subsequently, it was that providing the peer-to-peer crypto trading with a breakthrough crypto exchange platform, as they have been then searching for as some observers believe. Elisha Owusu Akyaw an influencer and cryptocurrency researcher at Blocknewsafrica, was sharing the view as News.Bitcoin.com spoke to.
As Akyaw says African cryptocurrency users have always wanted fiat on-ramps, who keeps track of weekly peer-to-peer trading volume trends.
As Kucoin and Binance, leading cryptocurrency exchanges added local currency to payment options, Akyaw comments that
Platforms are now willing to provide that as it shows how much there is a demand for fiat-on ramps from African users.
Roselyne Wanjiru, Kenyan economist, and Director at Pesabase, also comes in with the statement that the addition of Mpesa as the payment option has truly opened up liquidity options for traders.
Access to quick and easy ways to deposit and withdraw cash in a bid to exchange it for cryptocurrencies is one of the key challenges of crypto trading in Africa as she adds.
How Are People Viewing Digital Asset Trading?
More people will have the opportunity to participate in digital asset trading, as Wanjiru asserts the addition of the popular mobile money of Kenya as a payment option by the major exchange.
Peer-to-peer trading will continue to be the go-to option for users and platforms due to the uncertain regulatory environment prevailing in many countries as Akyaw believes.
In constraining the growth of the crypto market on the African continent, regulatory uncertainty has been central. As there has been a decree that financial institutions cannot interface with crypto platforms, some countries have purportedly banned cryptocurrency trading. When looking at the growing number of such platforms, it appears however that this is not a major concern for peer-to-peer trading platforms.
Another possible reason why more peer-to-peer platforms will be good for Africa, as Akyaw still weighs is that
With the potential to improve crypto knowledge levels, are recent additions to the P2P ecosystem in Africa. Education will be vital for growth and adoption for a continent plagued by crypto scams. Most of the top P2P platforms contribute to education efforts which in turn attract more people to the crypto space based on precedence.
Actively involved in cryptocurrency and blockchain education on the continent is Paxful one of the peer-to-peer platforms.
Benefitting traders in the form of much wider payment options and lower fee structures as Akyaw believes is the growing competition between exchange platforms. Boosting the adoption momentum is this in turn.
As the world in the 21st century is churning out more and more digital assets, investing in them is a challenge. With its regulatory feature being a force, it also means that there is more to the promise of cryptocurrency. With venturing out to the African continent the exchanges are looking to win the hearts of locals providing them with an efficient investment vehicle as also an effective currency transaction. So, we have a robust trading platform with the newly discovered countries across the African continent. We are sure Kucoin and Binance remain in demand.