Inflation Across The Middle East and North Africa Drives Crypto Adoption

According to a?report?released yesterday by blockchain analytics company Chainalysis, the Middle Eastern and North African region has the fastest-growing crypto market in the world. In just one year from July 2021 to June 2022, cryptocurrency payments within this area totaled US$566 billion. That was an incredible 48% increase over last year.

Latin America came in second place, having increased nearly 40% compared to last year as per Chainalysis’ 2022 Global Crypto Adoption Index. Central and Southern Asia followed closely behind North America in terms of growth, coming in at roughly 36%.

With transaction volume doubling between this year’s study and last year’s, Egypt was the MENA region’s fastest-growing crypto market. The nation’s central bank proposal to establish a crypto-based remittance corridor with the United Arab Emirates, where many Egyptian nationals work, helped to promote the expansion. About 8% of Egypt’s GDP is made up of remittances.

Turkish individuals received US$192 billion between July 2021 and June 2022, becoming Turkey the region’s most important cryptocurrency market according to Chainalysis. However, compared to Egypt and Morocco, it has had slower yearly growth.

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?Fiat Currency Devaluations Also Drive Investors To Crypto

High inflation rates and swift fiat currency devaluations in Turkey and Egypt are probably driving investors to crypto as an alternate strategy for protecting their investments.

By MarketWatch statistics, the Turkish lira has lost value against the US dollar by more than 100% during the past year, while the Egyptian pound has lost value by more than 25%.

In addition, Turkey has seen the highest levels of inflation, with the Turkish Statistical Institute claiming that in September, annual inflation exceeded 83%. However, as of press time, the independent inflation research organization ENAGrup pegs yearly CPI inflation at roughly 186%.

The rate of inflation in Morocco has been lower. The government’s increased acceptance of grassroots adoption is probably what contributed to the North African nation’s high ranking on the index.

Trading in cryptocurrencies was outlawed in Morocco in 2017, although demand has since increased. The nation’s central bank committed to crypto legislation earlier this year, focusing on innovation and consumer safety.