By Bilkyss Mentari
The cryptocurrency community is celebrating a historic year-end, with Bitcoin briefly surpassing the $100,000 mark before stabilizing around $95,000. This milestone, coupled with the approval of Bitcoin and Ethereum ETFs by U.S. authorities, has reignited global interest in crypto. In this momentum, tokenized assets and Real World Assets (RWAs) have also captured attention, signaling a resurgence of investments in digital assets.
This trend has not bypassed Africa—quite the contrary. Increasingly, countries initially hesitant are loosening their stance and adopting favorable regulations for cryptocurrencies.
In this regard, Botswana has emerged as a model of measured regulation in Africa. The Central Bank, in its latest financial stability report, concluded that risks associated with cryptocurrencies are currently limited. However, it emphasizes the importance of a strict regulatory framework to prevent money laundering and terrorism financing.
Specific measures, such as platform monitoring and compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) standards, are among the key recommendations in the report. This balanced approach allows Botswana to remain attractive to investors while minimizing risks.
Diverse continental initiatives
Across Africa, governments and institutions are progressively adopting measures to integrate cryptocurrencies into their economies.
In Morocco, for example, after a six-year ban, the Central Bank is drafting legislation to regulate cryptocurrencies and exploring the creation of a central bank digital currency (CBDC).
In Kenya, the Nairobi Securities Exchange (NSE) has partnered with the Hedera Council to accelerate the tokenization of financial assets. The government also plans to generate $465 million in crypto-related tax revenue by 2029.
However, Nigeria remains Africa’s leader in adoption, with high cryptocurrency usage for remittances and online commerce despite fluctuating regulations.
The adoption of official cryptocurrencies in emerging economies could increase by 30% by 2030
El Salvador paved the way in September 2021 by adopting Bitcoin as legal tender. This initiative has inspired other countries to consider integrating cryptocurrencies into their national economies.
In Africa, the Central African Republic (CAR) followed suit in 2022, making Bitcoin an official currency alongside the CFA franc. The CAR hopes to attract foreign investments and foster financial inclusion in a country where less than 10% of the population has access to a bank account. However, adoption remains challenging due to limited digital infrastructure and distrust from international institutions.
According to a World Bank report, the adoption of official cryptocurrencies in emerging economies could increase by 30% by 2030, reinforcing their role in global economic development.
A 25% annual growth in cryptocurrency transactions in Africa
According to Chainalysis, Sub-Saharan Africa recorded a 25% annual growth in cryptocurrency transactions, reaching a total value of $65 billion in 2024. These figures reflect growing interest in these assets, particularly for cross-border payments, where cryptocurrencies reduce costs and delays.
Despite this growth, several obstacles hinder wider adoption. Chief among them is the lack of harmonized regulations, which exposes users to fraud and scams. Similarly, the volatility of cryptocurrency prices remains a barrier for institutional investors.
Toward greater financial inclusion
Yet, for many, cryptocurrencies play a crucial role in financial inclusion in Africa. By offering accessible savings, credit, and payment solutions, they help bridge the financial gap in regions where access to traditional banks remains limited.
Africa, with its hybrid approach of caution and innovation, continues to carve out a unique path in the global cryptocurrency ecosystem. Coordinated efforts among regulators, businesses, and users will be essential to maximize benefits while minimizing risks.
