By Nkosingiphile Myeni
Africa-Press – Eswatini. More than 4 000 surveyed Emaswati had E22.2 million trading deals of crypto exchanges in 2022.
This is according to the Central Bank of Eswatini (CBE) baseline cryptocurrency survey where Bitcoin, Ethereum, Altcoin Trader, LUNO, and VALR counted among the most sought after crypocurrencies.
The study which sampled 4 561 Emaswati above the age of 18, composing of financial institutions and individuals uncovered that crypto transactions, constituted of 90.5 per cent of outward flow of funds outside of the country through bank transfers to these platforms.
The study adopted a convenience sampling method, reaching 4 561 respondents from across the different regions of Eswatini.
About 57.8 per cent of the participants were male, compared to 42.4 per cent female.
According to the study, the youth of ages 18-34 years old accounted for 69.4 per cent of the total respondents.
Approximately half of the survey participants possessed a tertiary level of education and that 47 per cent of the participants were in full-time employment, 17.8 per cent were self-employed, and 12.3 per cent were students.
Around 63.8 per cent, the majority, of the respondents indicated an income of less than E10 000.
involving
The study was done after the CBE commissioned ESEPARC to conduct it whereby the scope was involving both financial service providers (FSPs) and the general public to gain insights on their cryptocurrency awareness, ownership, and anticipated future involvement.
The survey was adapted and modified through the Organisation for Economic Co-operation and Development (OECD) Consumer Insights Survey on Crypto-assets questionnaire, befitting the local context.
CBE had not turned a blind eye on these products which seemed to have been expedited by the COVID-19 pandemic and was considered by economists as very volatile.
The CBE’s survey stated that there was still no sufficient regulation for crypto.
The CBE has been sternly warning members of the public, including consumers with limited knowledge of financial markets who have shown interest in cryptocurrency of the lack of regulation as well as caution.
The survey revealed that cryptocurrency awareness stood at 88.1 per cent of the sampled respondents, demonstrating high knowledge of crypto currency.
“Notably, a higher proportion of males exhibited a heightened awareness level (51.6 per cent) compared to females (36.4 per cent). “Among the crypto-aware respondents, a significant majority possessed tertiary education (46.1 per cent), whereas those with no formal education (0.3 per cent) or primary/elementary schooling (1.5 per cent) showed limited cryptocurrency awareness,” the study reads in part.
The study said 55.5 per cent of respondents were more familiar with Bitcoin compared to other available cryptocurrencies in the market whereby social media platforms such as WhatsApp, Instagram, Twitter, LinkedIn, and YouTube served as prevalent sources of cryptocurrency information.
At least 42.9 per cent of respondents said they used smartphones with internet access to crypto platforms.
Moreover the survey indicated that 29 per cent of respondents initially learned about cryptocurrency through informal conversations with non-experts, such as friends, family, and colleagues.
“Despite the considerable cryptocurrency awareness among respondents, only 8.5 per cent claimed ownership of cryptocurrencies during the time of the survey. Additionally, 12.4 per cent had previously held cryptocurrencies but no longer possessed them at the time of the survey, citing various reasons,” the study states.
It is said that among crypto-aware individuals, 79 per cent had never owned crypto currencies.
compared
However 6.7 per cent males owned cryptocurrencies compared to their female counterparts of three percent, indicating that males were twice as likely to own cryptocurrencies.
The study said 14.4 percent of respondents with tertiary education were crypto currency owners, while 11.3 per cent of crypto currency owners were aged between 25 and 34 years old.
“Of those who owned and previously owned cryptocurrencies, 10.7 per cent earned incomes below E10 000, revealing that crypto currency consumers were predominantly low-income earners, driven by the aspiration for quick financial gains.
In contrast, other markets often see greater engagement with cryptocurrency among wealthier consumers. While income’s role isn’t universal, certain trends are observed in countries like Australia, the UK, Argentina, and Brazil, where engagement correlates with income or socioeconomic status. Additionally, the study noted that 43.5 percent of respondents owned Bitcoin, and 10.9 per cent owned Ethereum,” the study said.
Other crypto currencies, including Shiba Inu, Berry, Weownomy (WEOWNS), Dascoin, Litecoin, and Tron (TRX) which were owned by 11 per cent Emaswati.
The study said the internet significantly influenced investment decisions made by cryptocurrency holders, with online videos (32.9 per cent), such as those on YouTube, being the primary source of information, followed closely by online articles (29.7 per cent).
respondents
The study said financial advisors were consulted by only 5.1 per cent of respondents before investing in cryptocurrency.
Both the Financial Services Regulatory Authority (FSRA) and the CBE are closely monitoring regional, African, and global developments.
“Currently, there is no cryptocurrency legislation or regulation in Eswatini. The Central Bank of Eswatini (CBE) has previously issued a public warning through the media, stating that individuals who wish to engage in digital currency trading must assume the associated risks,” the survey states.The legislation close to monitoring crypto is the Money Laundering and Financing of Terrorism (Prevention) Act (as amended) of 2016 which designates virtual asset service providers as accountable entities.
It said the cryptocurrency market has ‘profound volatility and the dearth of regulatory frameworks have raised apprehensions concerning consumer safeguarding and market authenticity, thereby compelling policymakers to initiate measures to establish regulatory protocols.’
Nevertheless, the CBE said by July 2023, the total market capitalisation of crypto currencies had ascended to E22 trillion (US$1.210 trillion) worldwide.
In September, CBE Governor Phil Mnisi announced the launch of the new digital currency, the Central Bank Digital Currency (CBDCs). The bank described crypto currency as a manifestation of digital assets functioning on block chain technology.
The bank said the emergence of cryptocurrency had a significant impact on financial technology (FinTech) and the major two contenders are Bitcoin and Ethereum reigning supreme in the market.
Source: TIMES
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