This frenzy has been linked to a rise in peer-to-peer trade and the usage of cryptocurrencies like Bitcoin as a store of wealth. When we compare statistics on cryptocurrency usage over the past two years, we can see a clear rise in cryptocurrency use in developing economies.
As per Chainalysis’ Global Crypto Adoption Index, Ukraine, Russia, Venezuela, China, and Kenya ranked first through fifth with respect to crypto adoption in 2020. Tanzania, Afghanistan, Nigeria, Colombia, and Vietnam represented the lower half.
Nevertheless, by 2021, the top four had fallen down the rankings, with new entrants from India, Ghana, and Russia. China, specifically, was removed off the list, due to the government’s recent clampdown on the cryptocurrency sector and progress in the creation of a CBDC.
According to the study, the volume of peer-to-peer transactions in smaller nations was greater than in the United States and China. According to Chainalysis, the rise in peer-to-peer trade is due to the worldwide financial crisis caused by the Covid-19 epidemic.
Relatively small economies are more adversely affected than bigger ones by currency depreciation and sharp rise in inflationary pressure. As a result, many people have resorted to Bitcoin as a means of storing wealth.
“Several developing countries are experiencing substantial currency depreciation, prompting people to purchase cryptocurrencies on peer-to-peer platforms in an attempt to protect their money. Others in similar fields utilize cryptocurrencies to conduct global transactions, whether for personal remittances or for business purposes such as buying products to import and sell.”
African nations are growing more open to bitcoin usage, as shown by the adoption indices for 2020 and 2021. Binance aims to teach newcomers in the sector in order to achieve its objective of increasing blockchain usage and affordability.
They have been able to teach ‘crypto novices’ on the fundamentals of blockchain technology and offer tools for long-time financial and professional growth with the assistance of the Binance Academy. Binance introduced the Binance Masterclass in January 2020, with the goal of assisting novices in avoiding cryptocurrency frauds.
Over 400,000 Africans have received free cryptocurrency instruction via the program’s webinars. The topics span from bitcoin basics to detecting frauds and safeguarding cryptocurrency. In the past year, approximately 70,000 Africans participated in the Masterclass. In 2021, there has been a significant rise. The Masterclass was attended by about 177,000 people in the first quarter of 2021, with an additional 179,500 in the second quarter.
“Blockchain education is at the core of our emphasis in the world economy,” said Emmanuel Babalola, Director at Binance Africa. As a blockchain framework provider, we are dedicated to guaranteeing that more and more individuals have access to accurate data on the ecosystem’s operations. Africa is a critical market for Binance because we look at the enormous potential that blockchain provides for the whole continent.”