According to a global survey from Hootsuite, the greatest numbers of Internet users owning digital currencies are in South Africa.
The report indicates that about 10.7% of South African Internet users are now in possession of cryptocurrencies making up the highest percentage in the world. Immediately behind South Africa, we can find countries from South-East Asia, such as Thailand and Indonesia.
The figures are quite surprising as South Africa manages to easily keep a top position in front of recognized crypto-friendly nations, such as South Korea, Japan or US.
But why is South Africa so hot on crypto?
The high percentage of Internet users owning Bitcoin and altcoins in South Africa replicates the global trends to a certain point, but what makes South Africa stand apart is the high interest for cryptocurrencies that was preserved even in the bear market of 2018.
South Africans are again different from most Bitcoin owners in Africa because they tend to use the market volatility in order to speculate and make money by betting on price evolution. In the rest of the African countries, most users have the tendency to use digital currencies to send money across borders and avoid high banking fees.
Further on, we have to underline that South Africa remains one of the biggest African economies, second only to Nigeria, and there is at certain moments a small economic surplus that can be placed in digital assets.
However, South Africa still has to fight major social imbalances where financial resources are actually controlled by a minority of people while most citizens are looking for alternatives, such as Bitcoin.
Though initially state authorities did not interfere with the crypto scene, later on after noticing the high interest of the population the government began to create the regulatory frame and started working with financial regulators and banks to protect consumers and investors. Thus, traders and investment companies are now at ease that the local government supports the cryptocurrencies market and it won’t try to block its development anytime soon.