A new report by the United Nations Conference on Trade and Development (UNCTAD) has shown that 8.5% of the population in Kenya own cryptocurrencies.
That percentage indicates that around 4.2 million people own digital assets in the East African country, the highest rate of ownership on the continent and the fifth globally.
Technext reports that the UNCTAD report shows that Kenya is leading Africa in cryptocurrency ownership despite warnings from regulators such as the Central Bank of Kenya (CBK) that the emerging assets can be high-risk.
The report says that while cryptocurrencies can enable fast and cheap payments, they also have potential downsides. For instance, a drop in the market price of a cryptocurrency could result in a loss for investors who purchased the digital asset with a loan.
Also, many digital assets are not yet widely accepted as payment for goods and services, which could make people use them for illicit activities such as money laundering and tax evasion.