Inflation risks, lack of banking infrastructure to drive cryptocurrency adoption in Africa

High inflation rates, volatile currencies and underdeveloped banking infrastructure are likely to result in an increase in the adoption of cryptocurrencies in Africa, a report by cryptocurrency multinational Luno and digital asset company Arcane Research shows.

Cryptocurrencies also offer lower-cost and faster remittance payments than is currently available on the continent. Traditional money transmitting services charge very high fees and intra-African payments are often slow, says Arcane Research CEO Tjoborn Bull Jenssen.

While much of the focus elsewhere has been on investment, speculation and trading, the utility benefits of cryptocurrencies are more needed in Africa than on other continents. Cryptocurrencies present solutions to many of the financial challenges in Africa. The current context is ideal for an alternative money system to take root, notes Luno GM for Africa Marius Reitz.

Although each country has its own…