Nigeria Tops Global Rankings in Cryptocurrency Ownership

Nigeria now ranks first in the world for owning cryptocurrencies, according to a recent global survey by ConsenSys. The study points out that emerging markets, especially Nigeria and South Africa, are crucial in the widespread adoption of cryptocurrencies.

Nigeria has the highest percentage of people owning cryptocurrencies, with 73%. It’s followed by South Africa with 68%, and the Philippines with 54%. These countries are actively involved in Web3 activities, using decentralized finance (DeFi), and owning digital assets like NFTs.

The survey shows that 93% of people globally have heard of cryptocurrencies, and 51% really understand them. In Nigeria, 80% are aware of what decentralization means, and 77% can correctly describe what a blockchain is.

However, there are still concerns. People worry about scams and the unstable crypto market and do not fully understand how cryptocurrencies work. Despite these issues, many people in these emerging markets are open to using cryptocurrencies.

The survey also found that 75% of people are worried about how artificial intelligence (AI) could be used for fraud or to spread fake news. About 54% believe that blockchain technology could help solve these problems by making things more open and accountable.

Joseph Lubin, a co-founder of Ethereum and CEO of ConsenSys, emphasized how important blockchain technology is for improving how securely and transparently data is handled. He noted that 2024 has seen significant growth in the adoption of blockchain and cryptocurrencies, partly because of the recent U.S. presidential election, which might lead to clearer rules for the sector.

In Nigeria, the rise in cryptocurrency use is driven by economic challenges such as high unemployment among the youth and soaring food prices. Cryptocurrencies have become a popular way for Nigerians living abroad to send money back home, avoiding the high fees of traditional banks.

Although Nigerian policymakers are cautious about the rapid increase in cryptocurrency use, fearing it might reduce their control over the economy and weaken the Nigerian naira, the government is still trying to find a balance. While the Nigerian SEC has started to regulate some cryptocurrency exchanges, several large cryptocurrency companies have left the Nigerian market this year.

Elsewhere, Bitcoin reached a new record high of $106K, driven by expectations of a rate cut by the Federal Reserve. The increase reflects the optimism about potential regulatory improvements and the idea of a national strategic bitcoin reserve under the new U.S. administration.