Turkey
Current Economic Situation in Turkey Source: Made in Turkey Tours The Turkish lira (TL), with the symbol ₺, is the official currency of the Republic of Turkey. It is currently valued at around 34 TL per USD, portraying succinctly the present struggle of the Turkish economy against the US dollar. While the Turkish economy is recording impressive growth, it is yet to tackle the problem of a high inflation rate. According to the Turkish Statistical Institute report for October 2024, there was a 48.58% annual increase and a 2.88% monthly increase in prices of consumer goods and services. The report also gave a breakdown of the price increments, highlighting education (93.66%) and transportation (26.14%) as the sectors with the highest and lowest yearly increment respectively. Despite its high inflation rate and the staggering 9.3% unemployment rate, the International Monetary Fund (IMF) has placed Turkey as the 17th largest world economy, which is an applaudable improvement from its 19th place in 2022. The Turkish economy is diversified, enabling it to generate revenue from different sectors. Its current Gross Domestic Profit (GDP) ranges around $1,113.56 billion and, in 2023, Turkey made $29.6 billion from the exportation of vehicle and vehicle parts alone. Beyond the industries sector, the country is also thriving in the domestic sector with $9.93 billion made from crotchet items, in 2023. Moreover, Turkey has also positioned itself for technology-driven economic growth by launching the National Technology Initiative. The International Trade Administration (ITA) published that the purpose of this initiative is to: The digital sector has contributed substantially to the Turkish economy, therefore the government’s plan to further develop the space is justifiable. In 2023, communication technology created 52,000 new employment opportunities, while information technology delivered 185,000 new hires. With both branches now worth over $33 billion cumulatively, it can be derived that Turkey provides an enabling environment for digital investments, and cryptocurrencies are bound to thrive in such spaces. Crypto Law in Turkey Source: Deposit Photos Cryptocurrencies and other digital assets have gone through a series of reformations to arrive at the new cryptocurrency bill which came into effect on July 2, 2024. These reforms are necessary for Turkey to catch up with the world’s changing financial and technology landscape. The Turkish Parliament, in 2019, passed Development Plan 11, which also catered for the setting up of an Association of Payment Services and Electronic Money Institutions, and adopted a national digital currency to be issued by The Central Bank of the Republic of Turkey (TCMB). However, it was not until April 2021 that the Turkish government made official its definitions of cryptocurrency and declared its stand on cryptocurrencies. These declarations were made through the new cryptocurrency bill, Law No. 7518, which is a modification of Capital Markets Law No. 6362 of December 2012. This amendment looks into all crypto transactions including buying, selling, and holding. It also addressed the operations of crypto firms, which it recognizes as Crypto Assets Service Providers (CASPs). The law makes a clear distinction between Crypto Assets Service Providers and Crypto Asset Custody Services (CACS). CASPs are companies that offer crypto services such as sales, purchasing, and holding of digital assets, whereas CACS are the Board-controlled bodies that handle the custody of crypto assets for customers, including the protection of wallet private keys. Considering the sensitivity of these service providers, such firms require licensing from the Capital Market Board (also known as Board). The Board will also monitor and dictate the transactions that the providers are allowed to carry out. Some other provisions of the new regulation include: Turkey’s regulations can be considered lenient in comparison with those of other countries. For one, the country’s decision to scrap crypto taxations can make it more appealing for investors. This will in turn greatly impact the extent to which the crypto industry can contribute to Turkey’s economic growth. Current State of Crypto Adoption in Turkey Source: IT Pulse Turkey’s crypto adoption rate is astounding. As documented by Binance in 2023, over 52% of people between 18 and 60 years in Turkey are holders of digital assets. Even so, Statistica projects that come 2025, over 26.21 million Turkish people will hold or actively transact in cryptocurrencies. The user penetration rate of cryptocurrency in Turkey points directly to the presence of efficient and trustworthy crypto exchanges and custody providers. Therefore, following the new regulation, several notable crypto service providers like Paribu, KuCoin, and Coinbase, amongst others, have gone on to obtain licenses to operate in Turkey. Moreover, the Turkish government is making strategic moves towards expanding its technology sector and by extension, creating a supportive space for blockchain operations. In its Medium-Term Plan 2024-2026, Turkey set the goal of bringing inflation down to 7% by 2027. Investing in technology is one of its strategies to achieve this. Factors Affecting the Adoption of Crypto in Turkey Source: Forbes There are several factors responsible for the high adoption rate of cryptocurrency in Turkey, but the most prominent are the inflation rate and the scrapping of crypto taxation by the government. With the Turkish lira consistently losing its value against the US dollar, adopting and saving in cryptocurrency has been beneficial in helping Turkish residents to match the constantly rising cost of living. Up until July 2024, the major challenge associated with the adoption of crypto in Turkey was its regulation. The absence of protection by the government heightened the Turkish citizens’ sensibility of risk. This has however been doused by the new crypto law of July 2, 2024. In addition to this, the Turkish government has taken a further step to scrap the tax on crypto, thereby reducing the cost of operations for blockchain companies and making Turkey more attractive for them to establish in and onboard users. Usage in Various Sectors in Turkey Crypto adoption in Turkey is also motivated by the solutions provided by companies using blockchain technology. Coinbase, for example, allows users to create a wallet on their platform where they can receive payment in USD and
Tunisia
Current Economic Situation in Tunisia Source: International Republican Institute The above poll, dated 2017, still represents the state of Tunisia’s economy today. On the Global Innovation Index 2024 ranking, Tunisia comes 81st out of 133 countries in the world and 14th of 18 Northern African and West Asian economies. As with several other countries, Tunisia’s economy was negatively affected by the COVID-19 pandemic which forced countries to shut down. Even after the world pandemic, Tunisia faced its own national stumbling block. Commenting on this, the World Bank noted that “the Tunisian economy in 2023 was still below its pre-Covid level, marking one of the slowest recoveries in the Middle East and North African region.” This slow recovery was traced to the low agricultural produce caused by drought. The drought-induced economic decline came after the 2.6% growth rate of 2022. This Northern African country has now sought innovative ways to tackle its climate challenges by leading investments in energy and water. One of the most recent efforts towards this was the fund opened to empower nine communities to mitigate the challenge. There are 350 communities in Tunisia, which means that the process of choosing only nine communities is highly competitive. The United Nations Capital Development Fund (UNCDF) writes on the project: LoCAL-Tunisia provides municipalities and communities with the means to implement concrete climate resilience and sustainable development measures with UNCDF oversight and technical support. The standard approach consolidates performance and strengthens local planning and project ownership on climate action to the benefit of citizens. The urgency of this project is directly linked to the effects of the climate crisis on agriculture, which has been a vital pillar of the Tunisian economy. While this is relevant, diversification is a major strategy adopted by well-developed countries and Tunisia may benefit from this too. The technology sector currently contributes over $232.9m to the economy and is poised to do more with adequate government backing. Crypto Law in Tunisia Source: Ledger Insights Tunisia’s economy operates under the provisions of the Central Bank of Tunisia (or Banque Centrale de Tunisie) and the precepts of Islamic Law. Perhaps, due to the dual authority of the BCT and Islamic Law, it is more difficult for citizens to go against the prohibition of cryptocurrency. In 2018, the Central Bank and the Islamic Law governing Tunisians published a statement criminalizing trading in crypto and other digital currencies not recognized by the government. Unlike in other countries where the crypto adoption rate continues to rise despite the prohibition, Tunisia has implemented considerably extreme measures to enforce citizens’ compliance. One such extreme instance was the arrest of a 17-year-old boy for carrying out a crypto transaction, which drew local and international attention. In sharp contrast to reality, the Minister of Economy (as of 2021), Ali Kooli, spoke to the media with enthusiasm to decriminalize cryptocurrency to prevent the repetition of such arrests. His public enthusiasm brings to mind the speech given by the Central Bank governor, Marouane el Abassi, at the 2020 Crypto Conference organized by Switzerland. The BCT governor said: We are convinced that restraining a technology at its beginnings would be a mistake. … The Central Bank of Tunisia has opted for the strategic choice of positioning itself as a facilitator with the Tunisian innovation ecosystem.” Also, there were reports in 2019 that Tunisia was set to launch its own national digital currency, the E-Dinar. The government was however quick to refute these claims in a press statement. The recurrence of promise statements and the grave silence that follows begs the question, “Why is the Tunisian government internally hesitant to integrate decentralized finance into its financial sector?” Current State of Crypto Adoption in Tunisia Source: Statistica The adoption rate of cryptocurrency in Tunisia is considerably low as it sits between 4% to 5% of the country’s population. The basis of this assertion is the Tunisian numbers. Tunisia’s current population, according to Worldometer, is 12,277,109, and the number of youths in the labour force ranges from around 3.5 million people. Therefore, only an average of 550,000 Tunisians out of a youth population of 3.5 million are interacting with cryptocurrencies. A correlation perhaps exists between the low crypto adoption rate in Tunisia, the country’s high unemployment rate of 16%, and the under exploration of the technology sector. As of 2022, there were only 113,000 jobs available in the technology sector. This is a contrast to the agricultural sector which employs over 1.7 million Tunisians. Fewer employment opportunities in the technology sector could be responsible for the lack of attraction to the sector, where the blockchain industry falls. Meanwhile, boundless opportunities lie in this space. Aside from simplifying the trading and holding of cryptocurrencies for individual users, the blockchain sector has become a key employer of labor in the world today. Web3 has climbed the ladder to be one of the highest-paying sectors today. Sources say that blockchain developers earn a competitive salary of between $150,000 to $175,000 yearly. This is recurrently possible because its barrier to entry is more considerate of hands-on skills than formal education. Therefore, in addition to its efforts to tackle climate change for increased agricultural production, Tunisia’s economy is likely to witness exponential growth if channels for employment in the blockchain industry are opened. By supporting the inflow of labour into the blockchain sector, the Tunisian government can position itself as a new tax generation source. However, it is important to praise the efforts of the small number of Tunisians who are still transacting in virtual currencies and successfully evading the government’s attention. The blockchain industry in Tunisia is expected to generate a revenue of $11.9 million come 2025, with an average of $23.4 per holder or trader. This projected revenue means progress for Tunisia when compared to the United States which has a more enabling environment for adoption and yet averages $101.80 per user. Factors Affecting Adoption of Crypto in Tunisia Source: Sigma AIBC Government Regulation The most prominent factors affecting the adoption of crypto in
Kenya
Current Economic Situation in Kenya Despite being the largest economy in East Africa, Kenya has faced and is still facing several challenges that are consequently detrimental to the economy. These challenges range from natural conditions such as drought and the COVID–19 pandemic, and human factors such as political instability and currency devaluation. However, Kenya’s resilience through these storms may be greatly attributed to its establishment of the Kenya Vision 2030, in 2008. The Kenya Vision 2030 was released in 2008 after a series of consultations from local and international industry players. The content of the Vision 2030 is also inclusive of the opinions and suggestions from ordinary citizens, in a participatory process conducted between October 2006 and July 2007. The official website of the Kenya Vision 2030 writes on the vision thus: The World Bank Group (WBG) is also highly invested in the success of Kenya’s national reformation plan. In November 2022, a framework was designed by the Fiscal Year (FY)2023-2028 Country Partnership Framework (CPF) in alignment with five major provisions. In the course of the implementation of this World Bank strategy, up to $10.17 billion has been invested in Kenya, through the International Finance Corporation (IFC), the International Bank for Reconstruction and Development (IBRD), the Multilateral Investment Guarantee Agency (MIGA), as well as the International Development Association (IDA). Kenya achieved an average of 5.2% growth in its GDP in 2023 which is a progressive increase from 2022’s 4.8%. The country has been innovative in growing its economy by diversifying its revenue sources and trade offerings. Some of the major revenue sources for the Kenyan economy include the agricultural sector, tourism, manufacturing, and transport and infrastructure. Crypto Law in Kenya The Central Bank of Kenya (CBK) has for a long time publicly expressed its hesitation towards Bitcoin and other virtual currencies. It is therefore dignifying to find the progress that the country has made in opening its arms and accepting cryptocurrencies as a part of its fiscal policies in recent years. Prior to the Central Bank’s recent acceptance of digital assets, the body released a public notice in 2015, clearly notifying the public of the risks associated with using, holding and trading cryptocurrencies. Some concerns raised in the public notice include ease of money laundering and terrorism financing, lack of regulation, and the general high-risk nature or volatility of virtual currencies. However, the positive clause to the statement was that Kenya’s Central Bank was careful not to criminalize crypto-related transactions. It said instead that, “CBK reiterates that Bitcoin and similar products are not legal tender nor are they regulated in Kenya. The public should therefore desist from transacting in Bitcoin and similar products.” Apart from the benefit of this lack of prohibition for consumers and companies alike, it has perhaps also made it easier for the CBK to transition to its current state of acceptance and monetization. Kenya has now taken bold steps in recognizing the viability of cryptocurrency and assimilating it into its financial ecosystem. Also, to alleviate the concern of lack of regulation which it raised in its 2015 Public Notice, Kenya has also put in place regulatory frameworks to guide the operation of cryptocurrencies among companies or service providers and the general public. There are three acts regulating cryptocurrencies in Kenya. They are: Other regulations on cryptocurrencies include the licensing requirement for firms under the Money Remittance compliance rule, as well as the taxes placed on crypto transactions. Current State of Crypto Adoption in Kenya The Kenyan cryptocurrency market has consistently grown since its government’s public warnings on the state of the ecosystem in 2015. As at July 2023, Kenya was recognized by Forbes as one of the top five crypto owning countries in Africa, with a trading volume of about $18.6 billion from at least 8% of the country’s population. In the world, cryptocurrency is most popular among people below 35 years. Therefore, Kenya’s current population of 80% youth proves the country a fertile ground for cryptocurrency. Further evidence of this is Kenya’s 15th place as CoinGecko’s most curious country about crypto. Also called “Silicon Savannah” (nicknamed after the Silicon Valley), Kenya’s technology ecosystem is booming and cryptocurrency is a huge part of this. Kenyans have adopted a robust utility approach towards cryptocurrencies, viewing them beyond digital assets for investment purposes. Crypto has been incorporated into companies such as AZA Finance that allow businesses make or receive international payments at a cheaper rate, Fonbnk that allows users exchange airtime for crypto, and Grassroot Economics that drives community inclusion through crypto. These, in addition to more popular peer-to-peer exchanges like Binance, have contributed to spurring Kenyan’s attraction to the blockchain ecosystem. Factors Affecting Adoption of Crypto in Kenya The compliance rules stipulated by the Central Bank of Kenya has played a major role in the rate of crypto adoption in the country. While the licensing requirement for crypto firms makes for a more secure transacting environment for users, the 3% tax on digital assets may affect users’ willingness to hold or trade in large volumes. Meanwhile, the digital asset tax is one of the several taxes that crypto users in Kenya have to deal with. The Kenyan Revenue Authority (KRA) published a revenue of over $77.5 million from crypto transactions between 2023 and 2024. The KRA is now set to implement a new real-time tax system to monitor all on-chain movement and maximize tax revenue. Therefore, Public reception of revenue made off their digital assets can subsequently affect how they interact with crypto. Conclusion Kenya’s government has come a long way from being apprehensive about cryptocurrencies to discovering and exploring the sector as a gold mine. Although there are concerns about the KRA increasing interest in the crypto sector as evident in its plans to implement a real-time tax system, this development only aligns with the authorities across other revenue sources, through the tax source programme. Despite the growth of the Kenyan cryptocurrency sector and its positive effect on the economy, Kenya still falls 10% behind its
Bolivia
Current Economic Situation in Bolivia Source: World Bank Data As at the time of writing, the Bolivian currency, the Bolivian Boliviano (BOB), exchanges at 6.83 BOB per USD. In March 2024, the country recorded $15.4M in external debt, justifying its place as 30th out of the 32 South American countries. Despite the country’s economic boom barely ten years ago and its recognition by the IMF in 2014, Bolivia’s reserves are drying out, putting its economy at risk of collapse. Bolivia is well known for its production and trade in natural gas and minerals, as well as in agricultural products. Some of its top exports are gaseous hydrocarbons including petroleum gas (22.3%/$3.08B), gold (22.0%/ $3.01B), zinc ores (13.3%/$1.68B), soybean oil (6.3%/$874M), amongst others. However, these numbers put against its import of $726M in March 2024, its current foreign debt, and its projected debt of $63.58B in 2029, can barely save the country from its current economic crisis and prevent a dreadful economic downfall. Crypto Law in Bolivia Alt Text: Law Gavel on Digital Currencies Source: CoinMarketCap In May 2014, Marcelo Zabalaga, the former Governor of the Central Bank of Bolivia, signed the bill to ban all cryptocurrencies in the country. This ban, however, did not criminalize holding or trading digital assets. It simply prohibited Bolivian companies from rendering or processing crypto-related services. As of 2020 when over 50 countries had legalized bitcoin and other cryptocurrencies, the Bolivian government retained its position that digital assets present more risks of financial losses for its citizens. However in 2024, more countries have opened up their economy to digital assets and Bolivia’s Central Bank President has finally decided it is time to catch up with the global financial space. The lift of the ban in June 2024 became rather necessary seeing that in spite of the digital asset prohibition, Bolivians were recording close to $1m transactions every month. Bolivia’s decision to align with Latin American crypto legislation also came with some regulations. Although banks and other financial institutions have now been allowed to transact in cryptocurrencies through verified electronic channels, only the official currency, the Bolivian Boliviano (BOB) is allowed as a medium of exchange for goods and services. Current State of Crypto Adoption in Bolivia Source: CryptoSlate Crypto adoption in Bolivia is growing rapidly, considering the economic crises that the country is currently facing. On one hand, the Bolivian government is making efforts to sensitize more citizens to the benefits of transitioning to the use of digital assets. On the other hand, the number of crypto transactions recorded in the country has skyrocketed over 100% since lifting the ban. Reports from the Financial Supervisory Authority (FSA) also provide more insight into crypto adoption in Bolivia. They stated that there has been about a 40% increase in commercial operations for up to six financial institutions that adopted virtual assets in their transactions. As part of its efforts to encourage the adoption of cryptocurrency in the country, the Bolivian government organized a series of 33 workshops all over the country, to educate current and potential holders of both the benefits and the risks of the new economic development. Over 3,000 participants were recorded at these workshops. Meanwhile, the Bolivian President, Luis Arce, is also enthusiastic about the adoption of digital assets in the country. Factors Driving Adoption of Crypto in Bolivia Source: Woodstock Power Foreign Currency Shortage: Since 2023, the Bolivian economy has been experiencing a shortage of foreign currencies. Both major and small-scale business players have found it difficult to access U.S. dollars in banks, making the adoption of crypto quite a necessary way out. Stablecoins such as USDT (Tether) remain valued at $1 and only trade per country’s exchange rate to dollars. With this, businesses can still transact in U.S. dollars and other foreign currency using stablecoins or any other preferred digital assets. Economic Crisis: The earlier quote from the Bolivian President, Luis Arce, is indicative of another major reason behind the government’s efforts to hasten crypto adoption in the country. The Bolivian economy largely relies on the production and exporting of mineral resources. However, the scarcity of dollars has invariably affected the nation’s ability to produce and conduct international trade. Therefore, boosting mineral-backed crypto assets will help importers and exporters transact in digital assets with the same valuation as the physical product or commodity. Challenges Facing Crypto Adoption in Bolivia Source: Corporate Finance Institute The major challenge currently faced by Bolivia in the adoption of crypto is the regulatory system surrounding its approval. As mentioned earlier in this article, the Bolivian central bank approved cryptocurrencies to be transacted by financial institutions but not to be used as legal tender within the country. Now, considering the shortage of foreign currency in the country’s international reserves of which cryptocurrency is supposed to solve, this regulation on the use of digital assets as legal tender puts a limitation on its adoption. Of more concern for users of crypto platforms and owners of crypto-based businesses is the lack of clear-cut compliance frameworks such as anti-money laundering, tax policies, and even consumer protection. The Bolivian Central Bank has voiced its awareness of the need for consumer protection in the crypto space and has taken proactive steps by hosting educational programs to sensitize its citizens to the benefits and volatility of blockchain technology. However, the gap in appropriate regulations remains a crucial one. Without an assurance of security for its operations, businesses and individuals will continue to be hesitant about transitioning to the use of digital assets. Economic Benefits of Crypto Adoption in Bolivia Source: AMBCrypto The adoption of crypto in Bolivia promises significant benefits for the Bolivian economy, especially in the area of modernizing the nation’s payment system. The economic potential of crypto adoption in Bolivia is truly high, especially as the majority of its population still uses traditional financial services. With the central bank’s inability to circulate dollars, more people will pivot to stablecoins, thereby easing financial pressure on the market. The economy will also benefit
France
Current Economic Situation in France Source: IMF DataMapper France is currently ranked the 7th largest economy in the world by Gross Domestic Product (GDP) and the 10th largest by Purchasing Power Parity (PPP). According to the International Monetary Fund in April 2024, France’s nominal GDP is $3.130 trillion and its PPP is $3.988 trillion, thereby contributing to up to 4% of world GDP. The popular Western European country runs on an economy that is diversely structured. Its major economic sector is the services sector, constituting tourism, retail, financial services, amongst others. This is not unusual as Paris, the capital of France, is ranked first in tourist centers in Europe and the third worldwide. Apart from the services sector, the country also generates massive income from public revenue sources such as value added tax, corporate tax and income tax. France’s thriving economy has also seen a great improvement in cost of living. Compared to the 5.66% of 2023, the country’s inflation rate now sits at 2.42%. Although France was among the countries that slipped into recession in the 2000s, their economy has long recovered, breaking through several periods of stagnancy in growth. Their level of growth in less than 30 years is as a result of economic decisions driven by data-backed projections. The Banque de France, the Central Bank of France, demonstrated the strength of the country’s economy through their macroeconomic projections released March 2024, as stated below: According to our March interim projections, GDP growth is expected to remain sluggish in 2024, to stand at 0.8% (after 0.9% in 2023), before accelerating to 1.5% and 1.7% in 2025 and 2026, respectively. In 2024, growth is expected to be driven more by household consumption than in 2023, due to the fall in inflation. In 2025, growth should also benefit from a recover in private investment, as monetary and financial conditions improve. In 2026, these trends should strenghten to generate robust activity. Crypto Law in France Source: Euro Company Formation The legalization of cryptocurrencies and digital assets by France in 2019, under the provisions of the PACTE law, was backed by strict laws to regulate their operations and protect French citizens and investors against the risks associated with the blockchain market. The PACTE law of 22 May 2019 stands for Plan d’Action pour la Croissance et la Transformation des Entreprises or, in English, the Action Plan for Business Growth and Transformation. Under this law, cryptocurrency businesses are recognized in two classifications: ICOs or DASPs. It is the collective responsibility of Autorité des marchés financiers – AMF (Financial Market Authority), French financial regulators, as well as Autorité de contrôle prudentiel et de résolution – ACPR (Prudential Supervision and Resolution Authority) to monitor the adherence to the provisons of the law. However, it is the sole responsibility of the AMF to give approvals for crypto companies to operate within the country. Market operators can either apply for visa as a token or Initial Coin Offering (ICO) issuer, or approval as a Digital Assets Service Provider (DASP). Without a visa or approval, they are prohibited from making a public offering or selling digital assets. The approval of Binance Exchange in 2022 falls under the DASP category. Meanwhile, the French law views digital assets quite differently. The law divides digital assets into: Based on this stratification, Article L54-10-1 of the Monetary and Financial Code states that digital assets, including cryptocurrencies and excluding financial instruments such as stocks and exchange-traded funds (ETFs), are: A digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically. Whereas, the French law recognizes tokens as: Any intangible asset representing, in digital form, one or more rights that can be issued, registered, stored or transferred by means of a shared electronic recording device (such as blockchain) making it possible to identify, directly or indirectly, the owner of said asset. This clear division of the properties of virtual assets in France makes it easier for the regulatory bodies to monitor virtual transactions and movement of assets, and clamp down on financial crimes such as money laundering and activities that fund terrorism. Current State of Crypto Adoption in France Source: Statistica Even before its legalization in 2019, cryptocurrency adoption has been on the upward trend in France. Today, at least one in eight French nationals – about 18% of France’s population – own and hold crypto assets. This brings the current penetration (or adoption) rate of crypto currency in France to 27.18%, an impressive jump from the 18.43% of 2023. Interestingly, a higher percentage of French crypto users (57%) are below 35 years of age. Although 70% of French crypto holders are male, more women are demonstrating interest in acquiring digital assets, suggesting that France has a promising future in relation to cryptocurrency adoption. However, French nationals seem to be operating on a similar level of risk consciousness as their central bank government. A new study shows that French investors only spend at most 10% of their savings on purchasing crypto assets. This study also reveals that the nationals have been hesitant to conduct cryptocurrency transactions (buying and holding) through crypto companies and exchanges. They have consistently shown more trust for their traditional banks. Factors Affecting Adoption of Crypto in France Source: ThinkMarkets Academy Regulatory Frameworks The high rate of adoption of cryptocurrency and other digital assets in France is largely influenced by their legalization by the Banque de France. In addition to regulation on licenses and taxes, the existing laws also caters to the protection of users and investors, which provides a safe environment for crypto transactions within the country. Risk Appetite There is a staggering gap in the gender demographics of French holders of crypto assets. Women represent 30% and men
Burundi
Current Economic Situation in Burundi Source: World Bank Data With a population of 13.2 million people (2023), 50.3% of whom are women and 41.5% young people under 15, Burundi is one of the most densely populated countries in the world with a GDP of 262.17 US dollars recorded in 2023. Currently, the Burundian franc (BIF ), exchanges at 2,861 BIF per USD. A fitting conversion for a country classified as a low-income economy and with 80% of its population employed in the agricultural sector. Reports show that Burundi’s economic growth is modest but faces several challenges. A recent study shows that economic growth accelerated to 2.7% in 2023, up from 1.8% in 2022, a growth brought about by favorable rainfall and increased government investment. However, growth is expected to slow to 2.2% in 2024, as persistent fuel and foreign exchange shortages continue to weigh on the economy. Crypto Law in Burundi Source: Grok Cryptocurrency and its trading are banned in Burundi, with the Bank of the Republic of Burundi, under then-president Pierre Nkurunziza, issuing a statement. A snippet from the statement read “ Since virtual currencies or cryptocurrencies are not regulated and are not issued or guaranteed by any Government or Central Bank, these currencies do not have legal tender in the territory of Burundi.” Regarding penalties that could be faced by defaulters, Alfred Nyobewumusi, a director at the central bank’s micro-finance department, said: “Strong measures could be taken against all those who will not respect this decision.” Current State of Adoption in Burundi There is a global increase in the adoption of cryptocurrency. And despite the setback currently faced as a result of the ban on cryptocurrency, Burundi is not immune to this trend, as digital currencies gain popularity as an alternative to traditional financial systems, offering increased financial inclusion for all. With pre-ban analysis showing that the crypto ecosystem was beginning to gather steam, the effect of the ban was really profound. Activities are still being carried out using cryptocurrencies though, as research projects a significant revenue growth, reaching US$51,100 by 2024. Looking ahead, the number of users in the Burundian cryptocurrency market is expected to grow significantly, reaching 30,520 users by 2025. And the user penetration rate, which stands at 0.22% in 2024, is expected to double to 0.44% by 2025. Source: Statista It is hoped that the government listens to the increasing pleas from its citizens to lift the ban, as it offers them the opportunity to be more financially inclusive. Challenges to Crypto Adoption Source: Grok The 2019 ban was enacted as a result of complaints from the citizens regarding lost cryptocurrency through fraudulent crypto schemes, this led to the government clarifying that cryptocurrency was not a legal financial asset in the country hence it could not assist in recovering funds lost through such transactions. This response partly prompted the government’s decision to ban cryptocurrency activities to prevent further financial losses among citizens. Current challenges to adoption include: Government Ban on Cryptocurrency Trading The most obvious challenge faced remains the government ban. This creates an atmosphere of uncertainty and illegality around the sector, making it difficult to engage with. With the ban covering every aspect of crypto trading and promotion of digital currencies, this has had a direct impact on individuals and businesses that had begun to venture into this new financial frontier, leaving them with limited options and raising concerns about the future of financial innovation in Burundi. Security Concerns And Fraud Risks These concerns were one of the initial reasons leading to the government ban, as the Burundian government sought to curtail the risk associated with the trading of crypto assets. This though should not be a valid enough reason to cause the complete ban of cryptocurrency, as regulations and proper awareness could be set in place to mitigate these concerns. Lack Of Proper Public Awareness Another major factor challenging the adoption of cryptocurrency in Burundi is the lack of proper public awareness. This is evident in the fact that most citizens have no idea of how cryptocurrency works and what regulations surround it. With the government’s ban on crypto, it is also not possible to have mainstream awareness campaigns. Economic Instability The economy of Burundi is focused mainly on agriculture, with agriculture making up 32.9% of their GDP, and 89% of their labour force by occupation. According to the International Monetary Fund (IMF), Burundi’s economic performance since 2000 has been “highly unstable with a tendentially decreasing GDP growth rate.” While circumstances like this often push countries to search for viable alternatives for economic growth such as the adoption of cryptocurrency, it has in the case of the Burundians, made their access to it more difficult and inadvertently slowed down chances of adoption. Potential Benefits of Crypto Adoption Source: Grok As seen in other countries where Cryptocurrency has been fully or even partly adopted, the pros of crypto adoption far outweigh the cons. And for an economy as fragile as the one in Burundi, it offers citizens an avenue to better their lives. Other potential benefits include: Factors That Could Drive Adoption As seen above, the adoption of cryptocurrency greatly opens up several opportunities to the average citizen of Burundi, and as such active participation should be encouraged. Below are some factors that could aid in Burundi’s adoption of cryptocurrency. Conclusion While Burundi’s cryptocurrency ban has undoubtedly impacted the ecosystem, it hasn’t halted progress entirely. Though engagement levels have yet to return to what they were before the ban, there is clear potential for growth. The ban, though well-intentioned, restricts many Burundians from accessing the financial inclusion that crypto offers. A more balanced approach—through regulatory frameworks and educational campaigns—could unlock these opportunities while mitigating risks. Burundi already has the foundation for a thriving crypto community. With the right support and policies, the future looks promising for crypto enthusiasts in the country.