How is Kenya responding to increasing popularity of digital coins?

In Summary

• Due to the problems faced by the country, the national currency of Kenya has experienced very high inflation, as a result of which, many of the citizens of the country ended up losing hope and trust in the national currency.

• Thanks to the modern crypto exchanges, traders do not even have to worry about storing their cryptocurrencies, as some of these exchanges offer that service as well.

Kenyans lead the world in peer to peer crypto trade.
Kenyans lead the world in peer to peer crypto trade.

Kenya is one of the countries that still has not made up its mind about its stand towards cryptocurrencies. While the country does not regulate the market, the government is not backing the crypto market either.

As much as there is confusion when it comes to the government and regulatory agencies of Kenya, a totally different picture can be seen when talking about the interest of people in the crypto trading market. Over the past few years, the local population has become vastly invested in the cryptocurrency market, and there are some serious reasons for this.

For many decades, the economy of Kenya has experienced many hardships.

Due to the problems faced by the country, the national currency of Kenya has experienced very high inflation, as a result of which, many of the citizens of the country ended up losing hope and trust in the national currency.

Due to the hyperinflation that the country experienced, it has become almost impossible for locals to keep their wealth in local currency. While looking for ways to keep their wealth safe, many found that the best thing to do would be to keep their money in cryptocurrencies.

This idea and outlook were further supported by the increasing popularity of cryptocurrencies around the world.

For the past few years, more and more people around the world have shown interest in cryptos. The price of cryptocurrencies increased several times over the past few years, reaching new heights very frequently.

Easier access to the trading market

One of the main reasons for crypto popularity in Kenya is how easy it is to access. Because there are little to no regulations in the country, locals are able to use the services of some of the best-known crypto exchanges in the market.

These crypto exchanges are making everything a lot easier for traders. Thanks to these companies, all Kenyans need to trade cryptocurrencies is to download the exchanges into their phones and start trading cryptos.

Thanks to the modern crypto exchanges, traders do not even have to worry about storing their cryptocurrencies, as some of these exchanges offer that service as well.

In addition, there also are many companies that have worked very hard to make crypto trading even easier. Many software development companies around the world have created crypto trading robots that are capable of analyzing the market in a matter of minutes.

This is a very important thing for local crypto traders in the country. In most cases, it takes crypto traders hours, sometimes, even more, to analyze the market and make decisions. Thanks to the crypto trading robots, the time needed for market analysis is a lot less.

However, when it comes to automated crypto trading with bots, there is a lot more that it has to offer.

These programs are also capable of actually trading cryptocurrencies. Once you sign up and connect the robot with your crypto exchange, you can set desired settings and let the robot trade cryptocurrencies for you.

Kenya leads in P2P crypto trading

Recently, a study was published that showed that the country is leading when it comes to cryptocurrency peer-to-peer transactions. The study shows the tech-savvy Kenyans are leading the world when it comes to exchanging digital currencies amongst themselves.

The study published by Chainalysis shows that there are many other countries on the list. With Kenya being the leader, the chart shows that Togo ranked second, Tanzania 4th, Ghana 10th, Nigeria 18th, and South Africa 62nd.

The data published by the research indicates just how important cryptocurrencies are for the crypto trading market in Kenya. As the markets continue to grow around the world, the demand also increases in African countries.

However, while the demand for crypto is huge in Kenya as well as in the whole region of Africa, the governments of the African countries are having a hard time finding the perfect balance in the crypto regulations.

While some have taken drastic measures to somehow limit the access of locals to the crypto trading market, others have not taken any steps whatsoever. This unregulated nature of the market is affecting the locals a lot, who are very much interested in cryptocurrency investments.

But, although the market is becoming more and more popular in Kenya, there is some resistance shown from larger organizations in the country.

A few months back, Kenyan Banks issued a special warning aimed at their customers, advising them not to buy, hold, or trade cryptocurrencies.

The emails sent to customers said that the cryptocurrency market was dangerous and they would end up losing their investments.

However, the numbers continue to show that the interest in the cryptocurrency market is increasing a lot in Kenya. More people than ever before are beginning to be part of the cryptocurrency market.

For many, it seems to be one of the only options for preserving their wealth. As the population of the country has suffered a lot over the past few decades due to the higher inflation rates, cryptocurrencies seem to be one of the few options that they have for investments.