Mistrust Inhibiting Crypto Adoption in South Africa, Report States

Mistrust Inhibiting Crypto Adoption in South Africa, Report States

A report from cyber security company Kaspersky indicates that mistrust and lack of understanding are hindering crypto adoption in South Africa.

The Findings

The report titled ‘Uncharted Territory: Why Consumers Are Still Wary about Adopting Cryptocurrency’ reveals that lack of understanding could be resulting in the mistrust that cryptocurrencies can keep a consumers’ money safe.

For example, 35 percent of South Africans are of the opinion that cryptocurrencies are volatile and they can only use them once they have stabilised. In addition, other consumers believe that cryptocurrencies will not be around forever and 17 percent said that cryptocurrencies “are not worth bothering about.”

The Kaspersky report, therefore, noted that the lack of understanding of how cryptocurrencies work among most consumers is inhibiting mainstream crypto adoption. Globally, adoption is also declining in spite of celebrities and influencers endorsing cryptocurrencies, the report stated.

Vitaly Mzokov, Head of Commercialisation at Kaspersky, said“To date, 70 percent of South Africans have never purchased cryptocurrencies, highlighting just how far away we are from it being accepted as a common form of payment or investment. It is clear that mainstream adoption and growth of cryptocurrency is being held back due to the vulnerable nature of the technology.”

Mzokov also observed that it is difficult for consumers to use their hard-earned money to use something they do not fully comprehend or trust. This is despite the fact that there is a high interest in using cryptocurrencies in the country.

According to the report, 34 percent of South Africans have some crypto knowledge, 19 percent completely understand how they work, and there is a high demand for cryptocurrency use.

Ensuring Consumer Protection

Mzokov advised cryptocurrency companies to build platforms that guarantee the protection of consumers’ investments.

Merkeleon, a partner of Kaspersky, is leading by example in this regard with legitimate marketplace platforms, crypto payment systems, crypto exchanges, and online auction platforms.

The Head of Sales and Business Development at Merkeleon, Alexey Sidorowich, said the cryptocurrency industry must be built upon trust.

“It is […] imperative that cryptocurrency businesses do all they can to protect their networks and ensure their customers’ finances are safe and secure,” he asserted.

The Kaspersky report comes at a time when findings show that emerging markets are more likely to adopt cryptocurrencies than developed markets.