Paxful, a peer-to-peer bitcoin marketplace and bitcoin wallet that enables buyers to purchase bitcoin directly from sellers via more than 300 different payment methods, has experienced an upswing in activity, driven by African consumers.
These gains were realised in spite of a fluctuating market. In fact, Paxful reports that Africa conducted 6.5 million trades in 2018, which is an average of 17,000 trades a day.
The company now aims to change the perceptions that held back consumers in Africa by reassuring Kenyans that its trade principles place security at the center of all operations to cultivate confidence in Bitcoin trading. With this in mind, Paxful’s Co-founders are optimistic about 2019.
The crypto-economy celebrated its 10th birthday in 2018, reaching a total market capitalization of approximately $138.6 billion (Ksh14.2 trillion). In this regard, Paxful Co-founder and CEO, Ray Youssef says that Africa will continue to play a leading role in the crypto-economy.
“The aim of the cryptocurrency revolution is to make the global economy more accessible,” Youseff explained.
“Africa has emerged as a leader in this space, with the highest number of new subscriptions at Paxful last year,” he added
Africa accounts for the highest number of new subscribers to the Paxful portal per month with the total number of transactions from African consumers at roughly Ksh7 billion (about $70 million) per month, culminating in an increase of 225% new users in the last 12 months.
Youssef stated that Africans are using cryptocurrency to satisfy both personal finance needs and entrepreneurial ventures; transferring goods, services, and money domestically as well as globally. There is also an emerging generation of Africans buying crypto as investment vehicles into promising blockchain start-ups. A relatively small number of Africans trade digital currencies speculatively for profit.
“At Paxful, we aim to continue leading the charge in demonstrating how bitcoin can be used for good. We plan to grow our pioneering #BuiltWithBitcoin charitable program to encourage the cryptocurrency sector to contribute funds for humanitarian projects with a focus on building schools and providing bursaries for disadvantaged children,” Youssef said.
Paxful believes that going forward, governments will pay closer attention to cryptocurrency.
Youssef stated that countries around the world are now taking a closer look at how to contend with the rise of the crypto-economy.
“We expect more activity in the policy development space in the next few years in line with digital currency acceptance. From a Kenyan point of view, technology and productivity intertwine, and this offers the convenience that the underbanked seek in digital banking,” he said.
On his part, Artur Schaback, Paxful Co-founder and COO explained Paxful’s plans for the year ahead.
“We remain passionate about facilitating financial inclusion to the underbanked and are awed by the progress made this year in achieving this goal. With only a small percentage of the global internet-active population currently trading in the crypto-space, the potential for expansion is great. The encouraging number of new users gained in 2018 in Africa alone proves the appetite for this technology. We’ve only just begun making inroads and are excited about the future,” he said.