The cities of Lagos and Ibadan in Nigeria have been recognized as the most ready for business activity involving cryptocurrencies in Africa, says the latest report.
The world's most crypto-ready hubs pic.twitter.com/7a04sZRjCE
— BitKE (@BitcoinKE) February 6, 2023
The report, based on research conducted by crypto accounting services firm, Recap, lists 50 top performing cities, globally for their competititives when it comes to crypto businesses.
Out of the top 50 cities, 6 are from Africa, with Nigeria, South Africa, and Angola represented:
- Lagos (Nigeria) – Position 14
- Ibadan (Nigeria) – Position 24
- Cape Town (South Africa) – Position 30
- Luanda (Angola) – Position 38
- Pretoria (South Africa) – Position 42
- Johannesburg (South Africa) – Position 46
While South African cities also do well in the report, Nigeria once again stands out in Africa with 45% of people in Nigeria owning or using crypto, according to the report. This is significant considering that only 11% of people in the United Kingdom, which topped the list, use or own crypto.
Despite the Central Bank of Nigeria (CBN) issuing a raft of suspensions and bans on cryptocurrencies, including a crypto ban in February of 2021, the people appear to prefer cryptocurrencies for its advantages in use – cases like remittances, cross -border trade, and safeguarding against currency devaluation.
Nigeria is currently considering regulation for cryptocurrencies including stablecoins, as well as Initial Coin Offerings (ICOs), as it prepares for an increase in digital finance by 2025.
According to the report, the rising adoption of cryptocurrencies has attracted the interest of cities globally who see potential for investment and innovation. This has created a competition among cities to be recognized as crypto-friendly locations.
“As regulations surrounding crypto become more established, particularly with regards to taxes, some countries offer more favorable tax systems than others, with some having 0% taxes on capital gains and others imposing a tax rate as high as 45%,” says the report.
The total includes the top 50 cities evaluated based on their readiness for widespread adoption of cryptocurrencies.
The study took into account a variety of factors, including the number of cryptocurrency events, job opportunities, companies, and ATMs related to crypto.
Other non-crypto considerations, such as quality of life, R&D spending as a percentage of GDP, and capital gains tax rate, were also taken into account.
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