Kenyans trade over Sh6b virtual currency, says report

Kenyans have traded more than Sh6 billion in Bitcoin over the past five years. The move highlights the rising popularity of digital currency among users in the country.

According to a new study compiling trading of cryptocurrencies globally by Paxful, Kenya emerged second in Africa, with 90 per cent of trading in the country done this year alone.

“Kenya is one of the biggest Bitcoin trading countries in the world, beating the likes of the Philippines and South Africa,” said the report in part.

According to the report, Kenya has traded Sh6.1 billion in bitcoin between 2015 and 2020. It is only second to Nigeria, the leader in Africa with Sh63 billion traded over the same period.

“Despite Covid-19 and the fact that the year isn’t over, 2020 has seen more Bitcoin trading in Kenya than ever before, with 4,524.7 Bitcoin being traded, a 319 per cent increase from 2019,” said the report.

The report was compiled from an analysis on the Bitcoin trading database, Paxful across 28 countries over five years. The report mirrors similar findings that have listed developing countries among the top ten economies, where the trade in digital currencies is taking root.

According to the 2020 Global Crypto Adoption Index released last September, only the US and China are ranked in the top ten.

Kenya emerged fifth among 154 countries, just after China and ahead of the US and South Africa in the adoption of Bitcoin.

Kenyan regulators have taken a cautious approach to the adoption of Bitcoin. In 2017 Central Bank Governor Patrick Njoroge termed digital currencies as a Ponzi scheme and warned investors to keep it off.

Last year, ICT Cabinet Secretary Joseph Mucheru said the State was exploring the use of blockchain and digital currencies in some public functions.

Head of Market Insights at Paxful Brian McCabe attributed increased popularity of Bitcoin to the uncertainty around income and investments due to Covid-19.