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Nigeria, South Africa, others ready for cryptocurrency – Report - PUNCH

JUNE 25, 2019

BY  Ife Ogunfuwa

People who have less in developing countries such as Nigeria and South Africa take greater financial risks and are ready to adopt cryptocurrencies, a report by Luno, a cryptocurrency company says.

In the study entitled, ‘Future of Money’, it was discovered that early adopters of cryptocurrencies came from emerging markets.

The study, which gathered the views of respondents across Europe, Africa and South-East Asia, said most Nigerians understood the principles of financial empowerment, with 25 per cent of them saying they needed money to pay tuition.

The study, conducted by Dalia Research for Luno between May and June 2019 , gathered insights from  7,000 individuals with Internet access in France, Indonesia, Italy, Malaysia, Nigeria, South Africa and the United Kingdom.

Luno Chief Executive Officer, Marcus Swanepoel, said, “As some of the world’s largest tech giants announce they are launching cryptocurrency coins, we believe developing markets will be the lead adopters. Our research shows that in these markets, people are more financially savvy because they have to be, which means that they need and understand the benefits the new coins can offer.”

When asked the question “Do you think a single global currency would make the current financial system better or worse?” the report said almost three times as many respondents from Nigeria and South Africa said it would make it better, compared to the United Kingdom.

Swanepoel  added, “The data also identified why money is such a focus in emerging markets.  When asked why money is important to them, the respondents said that it was ’to secure my family’s well-being (60 per cent) or to ‘pay for my education’ Nigeria 25 per cent, compared to eight per cent in the UK.

“A further question regarding the setting of a monthly expenditure budget found that 80 per cent of people in Malaysia; 65 per cent in Nigeria; 73 per cent in South Africa and 74 per cent in Indonesia, do, compared to 54 per cent in the UK. And, 33 per cent in Indonesia compared to zero per cent in the UK, are more likely to stay within the budget they set.”

According to Luno CEO, when cryptocurrencies are introduced by global brands, it will attract the interests of people in emerging markets, especially at the grassroots.

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