BITCOIN ADOPTION IN AFRICA UP DUE TO TRADING, REMITTANCES, FREELANCING, MINING REMAINS LOW

Last updated: June 20, 2025, 01:44 | Written by: Dan Larimer

Africa's cryptocurrency landscape is undergoing a dramatic transformation. By Harold Kwabena FEARON and Dennis AKWABOAH Cryptocurrencies and digital assets in general have become a transformative force across the globe, reshaping traditional financial systems and introducing new paradigms for value transfer, investment, and innovation. Africa, in particular, has emerged as a fascinating frontier for cryptocurrency adoption, driven by its unique economic landscapeForget the image of miners toiling away; the real story is the surge in everyday Africans using Bitcoin for practical purposes. Despite being officially illegal, Bitcoin mining has surged in Libya, partly due to small-scale miners taking advantage of the country s low electricity costs. In 2025, Libyans mined approximately 0.6% of all Bitcoins globally, which was the highest in the Arab world and Africa.A Chainalysis report revealed a staggering 1,200% growth in crypto adoption across the continent in just one year.While Bitcoin mining struggles to gain traction, particularly when compared to regions with cheaper energy and more established infrastructure like Texas, the increasing activity in Africa is being fueled by retail investors leveraging Bitcoin for savings, remittances, and peer-to-peer (P2P) trading.From Nigeria, a leader in crypto adoption thanks to significant remittance inflows, to other nations navigating mixed regulatory environments, Bitcoin is emerging as a powerful tool for financial empowerment.But what exactly is driving this surge, and why is Africa turning to Bitcoin as a solution? According to the Global Crypto Adoption Index compiled by Chainalysis, in 2025 there were five African economies among the top 30 nations for cryptocurrency adoption: Nigeria (2nd), Ethiopia (26th), Morocco (27th), Kenya (28th) and South Africa (30th).Let's delve into the driving forces, opportunities, and challenges shaping Bitcoin adoption across the African continent.

The Rise of Bitcoin Trading and Remittances in Africa

The driving force behind Bitcoin adoption in Africa is multi-faceted.While global awareness of cryptocurrencies has certainly contributed, the continent's unique economic realities are truly accelerating its adoption. Nigeria leads Africa in crypto adoption, with high remittance flows driving its large market. African nations face mixed regulations, with some imposing bans while others allow private trading. Cryptocurrency offers an affordable alternative for cross-border transactions, especially for remittances.Two key factors stand out: the increasing use of Bitcoin for trading and its growing role in facilitating remittances.

Trading: Many Africans are turning to Bitcoin as a means to generate income and preserve wealth.The volatility of local currencies in several African countries, coupled with limited access to traditional investment opportunities, makes Bitcoin an attractive alternative.Platforms like Bitrabo African Bitcoiners are fostering local communities and providing secure platforms for trading and learning about Bitcoin.

Remittances: Perhaps the most compelling use case is Bitcoins potential to revolutionize remittances.According to the World Bank, Sub-Saharan Africa received US$54 billion in official remittance flows in 2025.However, the average cost of sending US$200 remains a prohibitively high 7.9%, significantly exceeding the Sustainable Development Goal target of reducing remittance costs.Bitcoin offers a significantly cheaper and faster alternative. In a shocking turn of events, Trump proposes a tariff-free trade pact with Canada that could revolutionize North American trade as we know it! Meanwhile, theConsider this:

Lower Fees: Bitcoin transactions can bypass traditional banking fees, potentially saving users significant amounts on each transfer.
Faster Transfers: Bitcoin transactions are often processed much faster than traditional remittance methods, enabling quicker access to funds.
Direct Control: Individuals gain greater control over their finances by operating outside of centralized banking systems.

This is why conventional remittance platforms like MoneyGram and Western Union are starting to explore blockchain-based services and integrate cryptocurrency payment options.Companies like Bitmari, operating in Zimbabwe, are offering Bitcoin mobile wallets and Bitcoin-based remittances solutions specifically tailored to the African market.

The Role of Freelancing and the Digital Economy

Beyond trading and remittances, the burgeoning digital economy in Africa is also playing a crucial role in driving Bitcoin adoption. For example, Texas in the U.S. attracts miners with its cheap electricity and relaxed regulations. While China was once the global leader in Bitcoin mining, activities continue in regions with low energy costs, contributing to local economic benefits. Socio-Economic Impacts of High Bitcoin Adoption Positive Impacts. 1.Increased Financial InclusionThe rise of freelancing, coupled with the increasing demand for digital skills globally, has created a new avenue for Africans to earn in Bitcoin.

Many tech-savvy freelancers in countries like Kenya are finding that being paid in Bitcoin provides several advantages:

Access to Global Markets: Bitcoin allows freelancers to bypass currency restrictions and access a wider range of international clients.
Faster Payments: Receiving payments in Bitcoin can be significantly faster than waiting for traditional bank transfers.
Lower Transaction Fees: As with remittances, Bitcoin transactions often come with lower fees compared to traditional payment methods.

The combination of a young, tech-savvy population and a growing digital economy creates a fertile ground for Bitcoin adoption.Initiatives like Bitcoin Ekasi in South Africa, which promotes a Bitcoin circular economy, are further demonstrating the potential of Bitcoin to empower local communities and foster economic growth.

Bitcoin Mining in Africa: A Different Story

While trading, remittances, and freelancing are driving Bitcoin adoption, mining remains a challenge in most parts of Africa. 5.6M subscribers in the Bitcoin community. Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. UnlikeDespite the allure of cheap electricity in some regions, several factors are hindering the growth of Bitcoin mining operations:

Infrastructure Limitations: Reliable and stable electricity supply remains a major hurdle.
Regulatory Uncertainty: The lack of clear regulatory frameworks creates uncertainty for potential investors.
Capital Investment: Setting up a Bitcoin mining operation requires significant capital investment, which can be difficult to secure in many African countries.

However, there are exceptions.For example, Libya has seen a surge in Bitcoin mining due to small-scale miners taking advantage of low electricity costs. China s Bitmain hatched a plan to expand over-the-counter Bitcoin trading in non-mature markets such as in Africa by investing $1.6 million in Bitcoin data and trading services providerIn 2025, Libyans reportedly mined approximately 0.6% of all Bitcoins globally, the highest in Africa.Yet, despite these isolated instances, mining is not a significant driver of overall Bitcoin adoption on the continent.

What are the main challenges for Bitcoin mining in Africa?

The primary challenges include:

Unstable Electricity: Inconsistent power supply makes running mining operations unreliable.
High Initial Investment: The cost of specialized mining hardware can be prohibitive.
Regulatory Landscape: Ambiguity in regulations creates risk and discourages investment.

Regulatory Landscape: Navigating the Complexities

The regulatory landscape for Bitcoin and other cryptocurrencies in Africa is diverse and constantly evolving.Some countries have taken a cautious approach, imposing bans or restrictions on cryptocurrency trading, while others are more open to innovation and are exploring regulatory frameworks that support the growth of the digital asset industry. Africa. Sub-Saharan Africa has seen a surge in peer-to-peer Bitcoin trading. Nigeria, for instance, leads the continent in Bitcoin adoption, with citizens using it for remittances, payments, and wealth preservation. Bitcoin also offers a solution to challenges like currency restrictions and limited access to global markets. Southeast AsiaNigeria, for example, has experienced periods of both restriction and increasing acceptance.

The lack of a unified regulatory approach creates both challenges and opportunities. Bitcoin adoption in the Philippines has been steadily growing over the years. Since the crypto bull run in 2025, the local adoption of cryptocurrency in the country has been rapid compared to the other countries surveyed by the blockchain data platform Chainalysis for its annual index report titled, The 2025 Global Crypto Adoption Index, where the Philippines ranked 2nd.On the one hand, it can create uncertainty and hinder investment. For additional information, check out the full list of crypto tax-free countries that are drawing global Bitcoin adoption. Economic instability: Nations with high inflation or currency devaluation typically see faster Bitcoin adoption; Young, tech-savvy population: Demographics heavily influence adoption rates; Remittance-dependent economiesOn the other hand, it allows for experimentation and innovation in different jurisdictions.Ultimately, a clear and consistent regulatory framework is needed to foster sustainable growth of the Bitcoin ecosystem in Africa.

Bitcoin as a Tool for Economic Empowerment

Despite the challenges, Bitcoin holds immense potential for economic empowerment in Africa.By providing access to financial services for the unbanked, lowering remittance costs, and facilitating cross-border trade, Bitcoin can play a vital role in promoting economic growth and reducing poverty.The key lies in:

Financial Inclusion: Bitcoin can provide access to financial services for those excluded from the traditional banking system.
Reduced Transaction Costs: Lower remittance fees can free up more money for families and communities.
Greater Economic Autonomy: Bitcoin empowers individuals to manage their finances without reliance on unstable institutions.

Consider the potential impact on foreign exchange reserves.Greater Bitcoin adoption in countries like Nigeria could increase these reserves, potentially eclipsing the impact of traditional remittances.

Africa's Leading Nations in Bitcoin Adoption

According to the Global Crypto Adoption Index by Chainalysis, several African nations are leading the way in cryptocurrency adoption. Explore our top 21 countries leading the charge towards financial freedom and equality through Bitcoin. Each nation s unique initiatives and thriving communities pave the way for a decentralized financial landscape.As of 2025, five African economies ranked among the top 30 globally:

Nigeria (2nd): Driven by high remittance flows and a large unbanked population.
Ethiopia (26th): Growing interest in Bitcoin as a hedge against inflation.
Morocco (27th): Increasing use of cryptocurrencies for international trade.
Kenya (28th): Strong mobile money infrastructure and a tech-savvy population.
South Africa (30th): A relatively well-developed financial sector and increasing institutional interest.

These countries are demonstrating the diverse use cases and potential benefits of Bitcoin adoption in Africa.

Why is Nigeria a leading nation in Bitcoin adoption?

Several factors contribute to Nigeria's leading position:

High Remittance Inflows: Nigerians rely heavily on remittances from abroad.
Large Unbanked Population: Many Nigerians lack access to traditional banking services.
Currency Devaluation: Bitcoin is seen as a hedge against the declining value of the Naira.

The Future of Bitcoin in Africa: A Continent of Opportunity

The future of Bitcoin in Africa is bright. By Shogo Ishida and Yosuke Yoshida, co-CEOs, EMURGO MEA. Across Africa, a new digital gold rush in the form of bitcoin mining is underway. Thanks to cheap electricity, China s crypto mining ban, a tech-savvy population and supportive regimes, at least 10 countries in the continent are attracting large-scale bitcoin mining operations even as the cryptocurrency halved on April 19.As awareness and understanding of cryptocurrencies continue to grow, and as regulatory frameworks become more clear and supportive, Bitcoin adoption is likely to accelerate even further.It's predicted that Africa will increasingly adopt Bitcoin as a major tool for payment and remittance services across borders and for digital financial transactions. Experts expect that Africa will increasingly adopt Bitcoin as a major tool of payment and remittance service across borders and for digital financial transactions.But the transition isn't without potential pitfalls.Education, infrastructural improvements, and careful regulatory considerations are crucial for ensuring that the benefits of Bitcoin adoption are widely accessible and equitable.

What are the key factors that will influence the future of Bitcoin adoption in Africa?

Several factors will play a critical role:

Regulatory Clarity: Clear and consistent regulations are essential for fostering investment and innovation.
Infrastructure Development: Improving internet access and electricity reliability will be crucial.
Education and Awareness: Educating the public about the benefits and risks of Bitcoin is essential.
Partnerships and Collaboration: Collaboration between governments, businesses, and communities can accelerate adoption.

Conclusion: Embracing the Potential of Bitcoin in Africa

Bitcoin adoption in Africa is on the rise, driven by its utility in trading, remittances, and freelancing. Explore Africa's growing passion for Bitcoin, highlighting its role as the leading cryptocurrency and its impact on the continent's economy and innovation. More Africa s Love for Bitcoin: Why BTC is the King of Crypto on the Continent BitraboWhile mining remains a challenge, the continent's unique economic circumstances and a growing digital economy are creating a fertile ground for the adoption of cryptocurrencies. Bitmari offers a Bitcoin mobile wallet, Bitcoin-based remittances and financial solutions in Zimbabwe. In addition to remittance services, Bitmari is exploring land reform financing for farmers. Bitmari chose to set up operations in Zimbabwe due to its high cell phone penetration, high literacy rate, and extensive use of mobile banking services.As African nations navigate the complexities of regulation and infrastructure, the potential for Bitcoin to empower individuals, foster economic growth, and promote financial inclusion is immense.The focus must now be on education, collaboration, and responsible regulation to ensure that Bitcoin truly benefits the people of Africa and unlocks its full potential.It's not just about digital currency; it's about building a more inclusive and prosperous future for the continent.