On average, it costs 9.3% of value transferred to send the equivalent of $200 to the region - the highest anywhere in the world. With the African remittance market is expected to grow 4.2% in 2019 and 5.6% in 2020, the expectations is that crypto will take more and more of the African remittance market share.
Likewise, some cryptocurrency-based remittances fly beneath the radar, with it being unnoticed that they are serving this purpose. For example, Uganda’s Coinpesa is primarily a crypto exchange and does “not directly engage in the remittance business,” according to chief executive officer Suleiman Murunga. “However, that does not mean that we are not processing trades that originated as a remittance,” he observed. Murunga noted how cryptocurrency-based remittances were hard to track on an exchange, but also highlighted how this characteristic could help lower transfer costs to around 2%, having eliminated the cost of conversion from crypto to fiat.