A total of 4.25 million people in Kenya own cryptocurrency according to new data from The United Nations Conference on Trade and Development (UNCTAD).
This gives the country a high ranking in terms of participation in the digital currencies market but a low score as measured by the money invested in the space.
This gives the country a high ranking in terms of participation in the digital currencies market but a low score as measured by the money invested in the space.
Kenya was, for instance, placed ahead of developed economies such as the United States, which is ranked sixth with 8.3 percent of its population owning digital currencies.
UNCTAD linked Kenya’s rising adoption of digital currencies to low fees charged by crypto exchanges, speed in sending remittances and Internet access.
About 12.4 per cent of Kenyans aged between 16 and 64 own some form of crypto with a majority of traders being male, according to the Meltwater report.
The crypto market, known for its wild price swings, has shed more than half of its value since November last year as investors pulled out money from riskier assets amid worries over soaring inflation and rising interest rates.
Investors are buying cryptocurrencies as investments, to preserve their savings or carry out remittances.
Other purposes include paying for goods and services. Transactions through cryptocurrency are seen as convenient and quick and have a strong appeal among those who want to remain anonymous.
Last year the Central Bank of Kenya invited public views on the potential introduction of a digital currency- the Central Bank Digital Currency (CBDC) to offer some benefits, especially in reducing cross-border payment costs.
The introduction of the CBDC is inching closer as the Senate resolved to develop frameworks for their operation in the country.
Crashes in crypto prices have been increasing since the Russian invasion of Ukraine catching traders off-guard.
