Luno CEO Marios Ritz has predicted that Kenya will lead the cryptocurrency market on the continent in 2022.
Ritz said this in his Africa cryptocurrency market forecast released Thursday.
He said Africa took center stage in 2021 with a 1,200 percent increase in cryptocurrency adoption.
According to Ritz, the cryptocurrency industry in Kenya is booming with the potential for increased adoption this year, leaving Nigeria far behind.
Ritz said: “Kenya ranks first globally in P2P volumes for the second year in a row.
“The country’s cryptocurrency industry is booming with a rapid emergence of companies building blockchain-based solutions keeping in mind its young population, high heels of mobile connectivity and familiarity with digital payment solutions such as mobile money, and it is in a strong position to emerge as a leader in the cryptocurrency space in the world. East Africa in 2022.”
The CEO of Luno added that the cryptocurrency will serve as an alternative way to deal with cross-border transactions and the problems associated with remittances on the continent.
According to the World Bank, total remittances in sub-Saharan Africa exceeded $45 billion in 2021 – but with the severe shortage of foreign currency reserves across Africa preventing companies from receiving international payments and remitting their profits, many companies can look to cryptocurrency. As an alternative means of handling cross-border transactions.
The main strength of cryptocurrencies in this space lies in the open and decentralized blockchain networks that support them, which allow for easy transfer of funds between parties without all the delays and exorbitant fees regardless of who they are and where they are.
“Like most aspects of the crypto industry, progress in this area will depend heavily on the appropriate regulatory environment, and if this materializes, cryptocurrency could emerge as a major asset for operations-intensive businesses across Africa.”
However, he stated that Africa will gain more as the continent remains the most promising region for crypto adoption.