Africa has witnessed a massive increase in its crypto and forex adoption. South Africa is leading in this massive adoption alongside others like Nigeria, Kenya, El Salvador, and Ghana. With such a rapid crypto and forex adoption rate, it is easy to wonder how South Africa emerged as the leading country in Africa. South Africa’s increased interest in crypto and forex is not a result of mere luck but a deliberate process that has emerged as a result of multiple driving forces by the country’s residents and government. Let’s take a look at the grassroots, catalyst, and business forces that are drivers of South Africa’s interest in crypto and forex.
Grassroot Driving Forces
Any major trend that will result in long-lasting changes must be engraved in a society’s grassroots. There are issues that led South Africans to seek shelter in crypto and forex trading and investing. Two significant issues that have led to massive crypto and forex adoption among the South African people are as follows:
1.   The Need To Preserve Wealth
There were times when the South African Rand was very unstable and could witness incredible highs and heart-breaking lows within a very short time frame, which is similar to what is experienced in the crypto market today. This resulted in fear among the masses in South Africa as it was literally possible to be a millionaire today and be worth very little the next day. This massive volatility of the South African currency raised the need for residents to store their wealth in digital assets like crypto stable coins or more stable foreign currencies like the dollar, pound, or euro. More experienced investors are also involved in forex trading of the ZAR against other major foreign currencies like the euro, pound, or dollar. It is important to only trade with the best online forex broker in south africa.
2.   High Cost Of Crypto Mining
Early cryptocurrencies like bitcoin relied massively on crypto mining in order to function as expected and crypto mining requires a lot of electrical energy to power mining operations. It can be very expensive to set up these mining systems, especially with the high volatility of South Africa’s Rand. As a result, crypto trading became a more affordable way to participate in the crypto trend instead of crypto mining. The increased popularity of crypto and forex trading resulted in South Africa being called Africa’s trading nation.
Catalyst Driving Force: Government Acceptance and Regulations
Grassroots adoption of any innovation is great but there is the need for the government to set up policies and regulations that support the new innovation, if not that innovation is very likely to fade out with time. The government is literally the catalyst that will promote or destroy any grassroots innovation. South Africa’s government has created a very conducive environment that attracts both local and foreign investors to its crypto and forex trading industry. Crypto in South Africa is seen as a financial product and is regulated by the Financial Sector Conduct Authority (FSCA).
Business Driving Forces
Blockchain and trading companies are attracted to South Africa because of market demand and adequate government regulation. There is massive market demand in South Africa’s crypto and forex sectors due to the massive adoption of these assets by the country’s grassroots population. Let’s dive deeper into these business driving forces.
1.   Blockchain Startups
The grassroots adoption of cryptocurrencies in South Africa is an attraction for a wide range of blockchain startups as there is an obvious market gap that needs to be filled. Digital Based Exchange (DBEX) is a fintech company based in South Africa that is focused on helping the unbanked and underbanked population of Africa gain long-term financial freedom. Another notable blockchain startup is Nuud Money, a crypto and neo bank that enables smooth transactions between crypto traders by facilitating both fiat and digital currencies. Apart from these two blockchain companies, there are still many blockchain startups in South Africa that are business drivers of crypto and forex adoption in the country.
2.   The Influx Of Major Trading Brokers
Popular and reputable trading brokers are usually attracted to countries with market demand and adequate financial regulation. In return, these brokers also act as business drivers of crypto and forex trading and investing in South Africa. Many reputable trading brokers in South Africa allow residents to trade a wide range of financial instruments including forex, stocks, and crypto.
Conclusion
South Africa is leading in the massive adoption of forex and crypto in Africa. The rising interest in South Africa is a result of so many driving forces. The grassroots driving forces have sparked so much interest in crypto and forex which is seen as a solution to the South African Rand volatility and the numerous banking challenges that exist in the country. As a catalyst, the South African government embraced crypto and forex trading and investing by creating policies and regulations that benefit all stakeholders. The amazing combination of market demand and government support has become a point of attraction to blockchain startups and global trading brokers who are now setting up business arms focused on South Africa, which will definitely result in more interest in the country’s crypto and forex markets.
