The merchant consumer survey found that 53% of South African participants have little or no knowledge of cryptocurrencies. Interestingly, almost half of the respondents said that they would be more open to the digital asset arena if local banks provided such services.

South Africans need more education

Johannesburg-based management company Merchants determined that only 14% of South Africans have considerable knowledge of the cryptocurrency industry. 23% of the participants remained neutral, while the vast majority (53%) said they had limited or no understanding of the matter.

Unsurprisingly, young people are more aware of digital assets than older generations. Those between 18 and 24 years old have better knowledge than any other demographic group.

According to the survey, cryptocurrency adoption in South Africa could be boosted if national banks embrace the asset class and provide educational programs to users. Nearly one in two participants said they will be more likely to invest in bitcoin or altcoins if local financial institutions offer such services. Mat Conn of the GRO Group of Merchants explained the effects of the potential move:

“There is a real opportunity for banks to get involved in cryptocurrency as it starts to really take off on the continent, rather than waiting until it is more established, when consumers are likely to have a preferred platform or partner that they have created. trust with.”

Crypto adoption in South Africa ranks second in Africa

Despite having insufficient knowledge on the subject, a considerable proportion of the locals have already distributed some of their wealth in cryptocurrencies.

A recent study by the United Nations revealed that 7.1% of the county’s population, or approximately 4.2 million people, are HODLers. Thus, South Africa ranked second on the continent, behind Kenya, where the cryptocurrency adoption rate is 8.5%.

Earlier this month, Kuben Naidoo, deputy governor of the nation’s central bank, stated that digital assets, specifically bitcoin, could bring numerous advantages to the monetary system. However, he argued that there is too much hype in the space, urging the implementation of proper regulation.

Such rules are expected to take effect next year, after which cryptocurrencies will be classified as financial assets.

“We don’t intend to regulate it as currency, since you can’t walk into a store and use it to buy something. Instead, our view has changed to regulating (cryptocurrencies) as financial assets. There is a need to regulate it and bring it into the mainstream, but in a way that balances the hype and with investor protection being critical,” the executive said.

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