Familiarity with crypto-currencies such as Bitcoin is growing among South Africans, with some dubbing the digital currencies the “money of the future.
This is according to a new study by blockchain and Web3 software company Consensys, which highlights South Africans’ growing familiarity with crypto-currencies and decentralisation, positioning the country as a leader in blockchain adoption across Africa.
The survey comes as the value of Bitcoin, the world’s most popular crypto-currency, continues to rise.
Bitcoin recently rose to $100 000 (R1.7 million) following the victory of Donald Trump in the US elections.
Consensys yesterday unveiled the second edition of its Web3 and Crypto Perception Survey, conducted in partnership with international online research group, YouGov.
This latest survey offers insights into how global and South African audiences perceive the rapidly-expanding Web3 and crypto-currency landscape, moving beyond investment-focused viewpoints.
As a follow-up to the initial report published in 2023, Consensys expanded the scope of the survey, reaching over 18 000 individuals aged 18-65 in 18 countries across Africa, the Americas, Asia and Europe.
According to the report, 98% of South African respondents are aware of crypto-currencies, with 54% expressing familiarity with NFTs, and of those, 47% already own them.
Consensys points out that this level of awareness reflects a shift in how digital assets are perceived within the region, with 47% of respondents identifying crypto as “the future of money”.
It adds that South Africans are also embracing the environmental potential of crypto, with 76% of those aware of the technology seeing it as eco-friendly.
Moreover, 68% of respondents who are aware of crypto-currencies have already invested, with 80% planning to invest within the next year.
However, the survey found that challenges remain. Despite increased awareness, barriers to adoption persist due to concerns over scams and the complexity of the technology.
Consensys says while worries about scams have decreased by five percentage points since last year, 54% of respondents still cite them as a major obstacle. Additionally, 47% feel the technology is too complicated, and 43% admit they do not fully understand its purpose.
It states South Africa’s interest in decentralisation also continues to grow, with 74% of respondents familiar with the term, and 65% understanding its connection to crypto-currency.
According to the firm, many see decentralisation as a solution to the excessive power held by centralised Web2 companies, with 80% of respondents expressing concern over the control these companies have.
Social media (52%) and international banking (50%) were identified as sectors that could benefit most from decentralisation.
Joseph Lubin, co-founder of Ethereum and founder and CEO of Consensys, says: “The critical role of blockchain and decentralisation in enhancing privacy, trust and transparency for how our data is managed cannot be overstated.
“Our latest survey not only highlights the rising importance of data privacy, with 83% of respondents emphasising its significance, but also sheds light on pervasive concerns about exploitation and misinformation, a pressing issue amid global elections and the mainstream adoption of AI.”
In comparison to other regions, Consensys says South Africa is among the leading nations in crypto wallet ownership, alongside Nigeria and several Asian countries.
Nearly half (48%) of South Africans are aware of Web3, positioning the country as a regional leader in Web3 awareness, it notes.
“Every year, we continue to see positive momentum for the growth and adoption of crypto, blockchain, and Web3 – the re-decentralised web,” Lunin adds. “2024 has been a monumental year for crypto for a variety of reasons, which are rapidly converging to move society and the right direction espoused by the Web3 ecosystem, towards far greater economic, social and political agency for all people and communities.
“The recent US presidential election may lead to significant regulatory clarity, for example. As the world embraces the potential of decentralisation and crypto, our industry stands ready to support and empower the next wave of users through education and innovation, while solving some of our world’s most complex challenges.”