Nigeria is the richest country in cryptocurrencies, according to ConsenSys' second annual global survey.
The report says emerging markets such as Nigeria and South Africa are leading the global adoption of cryptocurrencies.
The percentage of ownership is highest in the Philippines (54%), South Africa (68%) and Nigeria (73%).
These countries are at the forefront of visible interest in cryptocurrency awareness, ownership and engagement.
According to the survey, 51% of respondents say they understand crypto assets and 93% of respondents worldwide. Additionally, these countries showed strong interest in Web3 activities such as stocks, decentralized finance (DeFi) use, and NFT holding.
80% of Nigerian respondents were aware of decentralization and 77% correctly defined blockchain. Additionally, 74% of South African respondents said they were familiar with the concept, compared to 61% of those in the Philippines.
The survey also revealed persistent barriers to entry despite the growing interest in cryptocurrencies in these regions. Concerns about fraud, market volatility, and a lack of understanding of their purpose are common worldwide.
Respondents from emerging markets indicated their willingness to embrace virtual currencies despite these challenges and obstacles. Seventy-five percent of respondents expressed concern about the potential of artificial intelligence (AI) to spread fraud and create fake news, noting that blockchain could be crucial in solving these problems.
Blockchain can provide the accountability and transparency needed to counter AI-generated disinformation, according to about 54% of global respondents.
Commenting on the survey results on the growing importance of data privacy, Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, said: "It is impossible to overstate the crucial role that blockchain technology and decentralization play in improving privacy, trust and transparency in the way our data is handled.
"The adoption of Web3, blockchain and cryptocurrency has accelerated recently, with 2024 being a key year. ยป
He said this increase is partly due to the recent US presidential election, which could result in more transparent regulation for the sector.
Nigeria: A Unique Crypto Market
Nigerians are turning to the digital world in hopes of making a living as the real economy struggles with high youth unemployment and astronomical food inflation. Chainalysis, a New York-based firm that tracks blockchain usage, estimates that 33% of Nigerians are currently invested in cryptocurrencies, making them the second-largest in the world in terms of adoption, behind India. Nigerians living abroad are using crypto assets to send money to family back home, avoiding the hassles and exorbitant fees associated with traditional expatriate remittance methods. However, Nigerian politicians are concerned about the appetite for cryptocurrencies, which are transnational in nature. They claim that instead of solving Nigerians' problems, the country's move to cryptocurrencies has weakened its ability to govern and further damaged the ailing naira.
These obstacles have not stopped President Tinubu's administration from using a carrot-and-stick approach. While the Nigerian SEC has nominally regulated some local cryptocurrency exchanges, at least three prominent cryptocurrency companies have exited the Nigerian market this year.
Bitcoin: The rally is at its peakBitcoin hit a new all-time high, hitting $106,000 on Monday morning as investors awaited a rate cut from the Federal Reserve later this week. Bitcoin is now up 50% since the US election and nearly 8% for the month since Trump's victory, up 145% year to date. Digital assets continue to benefit from the prospect of a more favorable regulatory environment and the potential creation of a national strategic reserve of bitcoin under the incoming administration of Donald Trump.
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