Recently, Equithy’s David Goldman reviewed different datasets for a deeper understanding of crypto ownership trends in South Africa. The data indicates that the country has one of the highest crypto ownership rates in the country. In one global study ranking countries based on their success with cryptocurrencies, South Africa ranked 10th.
Most Crypto Users in South Africa Are Millennials, Survey Shows
A 2022 survey shows that cryptocurrency awareness is growing among South Africans. Approximately 86 percent of adults have heard of cryptocurrencies, which marks a 20 percent increase since 2021 when it was only 66 percent.
The survey also indicates that most crypto owners in South Africa fall within the young adult to middle-aged adult age group. That means about 83 percent of crypto users in South Africa are aged 18 to 44. Meanwhile, only about 7 percent of crypto holders are aged 55 years and over. The trend suggests that millennials make up a majority of the user base in South Africa.
Triple A’s survey shows that among the people who own cryptocurrencies in South Africa, 46 percent own more than R10,000 in digital assets. Meanwhile, an impressive 12 percent own more than R100,000 worth of digital assets.
Bitcoin Most Popular Among South African Crypto Holders
When it comes to the types of cryptocurrencies owned by South Africans, Bitcoin makes up the biggest chunk. Bitcoin makes up 79 percent of the cryptocurrencies owned by respondents. Ethereum was owned by 45.28 percent of crypto holders, while XRP only makes up 28.30 percent.
One interesting finding of the survey was that around 52 percent of respondents said that they’ve already used cryptocurrency to pay for their purchases. This suggests that assets like Bitcoin and Ethereum are becoming mainstream payment methods in South Africa.
Lack Of Knowledge About Crypto Cited As Main Reason For Low Adoption
Overall, a review of the results by Equithy’s David Goldman shows that South Africa has adopted a positive attitude towards cryptocurrencies. But despite the general awareness of cryptocurrencies, the main reason for a lack of mass adoption is a lack of in-depth knowledge about how it works. Around 68 percent of respondents have cited it as the reason why they haven’t invested in any cryptocurrency.
Not to mention, there’s an air of uncertainty surrounding cryptocurrencies because of how they’re vastly different from current asset types. Fortunately, the country’s main regulator is partnering with the reserve bank to roll out specific regulations to protect crypto users from scams and similar problems.
For instance, all crypto exchanges operating in South Africa are required to register themselves and get an operational license to continue providing services. Otherwise, they risk being shut down or having to pay major fines. According to Equithy’s David Goldman, South Africa has the potential to be one of the biggest crypto hubs on the continent. After all, it’s one of the first African countries to roll out cryptocurrency regulations to protect users and investors.
Once exchanges start complying with regulator requirements, banking institutions will be more open to offering their services as well. This will encourage greater rates of crypto adoption among South Africans as well.
