ConsenSys' second annual Global Survey reveals Nigeria as the leading nation in global cryptocurrency ownership.
The survey emphasizes the significant role of emerging markets, especially Nigeria and South Africa, in the global cryptocurrency adoption. The Philippines (54%), South Africa (68%), and Nigeria (73%) exhibit notably high cryptocurrency ownership rates.
These countries are at the forefront of cryptocurrency awareness, ownership, and usage.The survey data indicates that 51% of respondents possess a strong understanding of crypto assets, while global awareness stands at 93%.
Moreover, these countries exhibit significant interest in Web3 activities, including staking, decentralized finance (DeFi), and non-fungible tokens (NFTs).
Eighty percent of Nigerian respondents recognized the concept of decentralization, and 77% accurately defined blockchain technology. In South Africa, 74% of respondents reported familiarity with the concept, compared to 61% in the Philippines.
Despite the growing enthusiasm for cryptocurrency in these regions, the survey also identifies persistent barriers to entry. Common concerns include scams, market volatility, and a lack of understanding regarding the purpose of cryptocurrencies.
Participants from emerging markets have demonstrated a readiness to embrace virtual currencies despite these challenges.
Seventy-five percent of those surveyed expressed apprehension about the potential of artificial intelligence (AI) to facilitate fraud and disseminate misinformation, suggesting that blockchain technology could play a vital role in addressing these issues.
Approximately 54% of global participants believe that blockchain can provide the necessary accountability and transparency to combat AI-driven disinformation.
Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, emphasized the importance of data privacy in light of the survey's findings, stating that the impact of blockchain technology and decentralization on enhancing privacy, trust, and transparency in data management cannot be overstated.
He noted that the recent surge in the adoption of Web3, blockchain, and cryptocurrency is significant, with 2024 poised to be a pivotal year. Lubin attributed part of this growth to the recent U.S. presidential election, which may lead to clearer regulations for the industry.
In Nigeria, the digital economy has attracted many individuals seeking opportunities amid high youth unemployment and soaring food prices. According to Chainalysis, a blockchain analytics firm based in New York, approximately 33% of Nigerians are currently investing in cryptocurrencies, positioning the nation as the second highest in global adoption, following India.
Nigerians living abroad utilize cryptocurrency to send remittances to their families, circumventing the challenges and high fees associated with traditional methods.
Nevertheless, Nigerian policymakers have voiced concerns about the increasing popularity of cryptocurrencies, asserting that this trend weakens their regulatory authority and intensifies the challenges confronting the naira.
Despite these difficulties, President Tinubu's administration has implemented a balanced strategy. While the Nigerian SEC has established regulations for several domestic cryptocurrency exchanges, at least three major cryptocurrency companies have withdrawn from the Nigerian market.