The growing popularity of crypto in South Africa

Do you actually know that, according to Statista, the number of South Africans owning crypto is expected to hit over six million by 2025? If this happens, it might cause the crypto market revenue to grow to $373.5m by the end of this year. So, why do you think many people have been welcoming digital currencies in this region? And do you think things will remain this way, or they might change in the future?

Well, for those with such questions, you need not worry. This article will explore different factors, explaining how they help advance this industry’s popularity in the country. Of course, it follows that as more people welcome the currencies, they could affect their prices. For instance, if demand for Bitcoin increases, you’ll expect the BTC price ZAR to increase because of the limited supply of tokens. Read on to learn more about what is influencing the popularity of these currencies in the region and the potential effects of this trend.

Global factors

Do you remember the SEC’s approval of Bitcoin ETFs in early 2024? This event, which happened on January 10, 2024, would later cause significant changes in the industry. In fact, it would later become possible for investors to bypass the complexities of the cryptosystem, as the ETFs allow exposure to crypto without directly purchasing and holding them.

And you’d be surprised to learn that, according to experts, daily ETF volumes in March rose to highs of $10 billion in the wake of this approval. Of course, one of the reasons for this growth was with ETFs, organisations could now securely include Bitcoin in their portfolios. Such moves by world powers like the US can give a positive impression of crypto, encouraging people from other nations to invest.

As if that’s not enough, just after Trump won the US elections, something that had never been seen happened – Bitcoin surpassed the $100,000 mark. Not once, not twice, has Trump expressed a positive stance towards crypto, which has led to many investors joining the industry after his win. And that also includes South African investors.

The role of crypto’s fast and cheap transactions

You will agree that tech improvements always affect our expectations. For instance, now that it’s possible to have similar experiences on the phone and desktop because of responsive designs, you wouldn’t expect a frustrating experience just because you switched to a smaller device. Another example is receiving funds – now that there’s a technology that supports instant transfer, most customers expect businesses to offer them.

In fact, looking at the statistics, PYMNTs.com noted that about 78% claimed to be highly satisfied after receiving instant payments. On top of that, another study revealed that over 74% of shoppers used faster or more immediate payment methods a few years ago. Interestingly, this was not just common among buyers; even businesses, in fact, 86%, used them. This should already mean something to you – fast payments have become crucial to the customer experience.

Thankfully, crypto can help businesses meet this growing need. Since no intermediaries are involved, funds can be transferred within a matter of seconds and cheaply. That explains why several businesses, including South African ones, have been adopting this technology to improve their edge. Remember, acquiring new customers is becoming expensive by the day, and any forward-thinking business will want to take advantage of such technologies to stay ahead.

Crypto’s improved security

The subject of online security has become a critical one. In fact, are you aware that South Africa alone accounts for over 20% of attacks on the African continent? To add to that, a CSIR report noted that close to 88% of South African organisations admitted to experiencing at least one attack. Ignoring such statistics in a world that’s becoming more security-conscious can be a great disservice to businesses seeking long-term success.

Actually, customers have become very discerning, with most of them considering the safety of platforms before transacting. Imagine the pain of losing such an audience just because they perceived your platform as untrustworthy. And mark you: we mostly don’t keep quiet when we meet such platforms as we are likely to even tell our friends about them, which can negatively affect your brand perception.

To get ahead of this, South African organisations are implementing more secure infrastructures like crypto. By the way, this technology is decentralised to prevent the single-point failure risks associated with traditional networks from affecting it. Plus, the immutability of crypto creates a tamper-proof record of transactions by ensuring that data cannot be altered or deleted once it is recorded.

And have we even mentioned its encryption? This ensures that hackers have trouble accessing data as it is converted into unreadable formats that are very hard to decipher. Now that security and privacy can actually be competitive advantages, these crypto benefits must be good news for South African businesses.

What is our final word?

It should not come as a surprise that research institutions like Statista expect crypto’s popularity to increase in South Africa. Just recently, towards the end of last year (2024), the prices of tokens like Bitcoin rose to levels that had never been seen before.

Such trends can give a positive impression of crypto’s potential, encouraging many people to invest. Plus, moves like the SEC’s approval of Bitcoin ETFs in the US also affect crypto globally. These factors, alongside the general advantages of digital currencies, provide good grounds for their further adoption in the country.