After announcing a disappointing closure of a Ugandan subsidiary in October, Binance – the world’s largest cryptocurrency exchange – published a blog post yesterday indicating that another initiative, Binance P2P, is making strong strides in the world’s second largest continent.
The post titled “P2P Merchants: Facilitating Free Money in Africa” highlighted the growth of the peer-to-peer trading program in the region over the year. In particular, Binance P2P was found to have processed a total of $ 280 million in local African currency equivalent since March, when the program introduced reporting for the Nigerian Naira (NGN).
Binance also claims that the program enables local traders in Nigeria, Kenya, South Africa, Egypt and Morocco to “earn between $ 30 and $ 350 a day” buying cryptocurrencies and selling them to their counterparts using local fiat currencies. In a separate post, Binance also points out that Binance P2P makes it easy to conduct your own crypto trading process.
This update follows on from comments in May by Binance CEO Changpeng “CZ” Zhao, in which CZ described Africa as an “untapped market” that presents both significant opportunities and unique challenges.
“We see the entire African market as a really important market,” he said. “I don’t think that it is currently very easy to buy cryptocurrencies in Africa as a whole. That’s why we want to help improve this situation.”
In a July interview with Cointelegraph, Chris Maurice, CEO of Nigeria-based exchange Yellow Card, offered a different view than CZ, noting that growth is going well:
“In terms of the crypto scene and everything, things are growing very quickly, really across the continent, particularly Nigeria, South Africa, Ghana and Kenya,” Maurice said.
In addition, data suggests that usage is increasing in Africa. Research firm Chainalysis released a report in September indicating that low-value crypto transfers across the continent were up over 50% year over year.
This is a particularly promising development as cryptocurrencies can greatly improve cross-border exchanges and settlement across the continent.