Cryptocurrency

Nigeria’s Interest in Cryptocurrency and Bitcoin Increases despite CBN Crypto Ban

Nigeria has been rated the 2nd country most thinking about bitcoin, despite the issue of accessing the trillion-dollar crypto in the country.

As evidenced by data from Google trends, the financial market turmoil brought on by COVID-19 has definitely changed just how Nigerians view the whole financial system, with Nigeria one of the leading countries in bitcoin searches.

Predicated on local geographic metrics, Delta, Anambra, Bayelsa, Edo, and Enugu rank as the very best five states with the greatest fascination with Bitcoin in Nigeria.

This really is coming on the backdrop that CBN has intensified its campaign against cryptocurrency traders and is currently targeting entities and individuals offering P2P platforms or services to customers who trade crypto assets

Nairametrics previously reported that some banks arbitrarily froze bank accounts of an individual suspected of trading cryptocurrency included in the CBN’s renewed crackdown.

Since Nigerians are among the absolute most tech-savvy on earth, it’s super easy in order for them to adopt bitcoin use. Regardless of this, youths in Nigeria aren’t the only real ones adopting bitcoin.

Earlier this season, the Central Bank of Nigeria denied crypto companies use of the banking ecosystem, causing many cryptocurrency businesses to up close shop. Other individuals were also forced to scale back their operations using P2P systems as a result of the same blockade.

Flutterwave, Paystack, and Monnify are some of the crypto exchanges that partner with NBFIs and OFIs to transact with bank customers in Nigeria. This permits them to simply accept debit cards and direct transfers. Those companies cannot continue providing these services on the basis of the instructions in the circular.

Why CBN is kicking against Bitcoin? CBN Crypto Ban

Cryptocurrency is recognized as illegal money by the CBN. “Currently, cryptocurrency doesn’t belong within our monetary system, and cryptocurrency transactions shouldn’t be carried out through Nigerian banks,” the CBN had stated.

The Nigerian apex bank says the anonymity, untraceability, and speculative nature of cryptocurrencies is causing them to be increasingly useful for money laundering, terrorism funding, and other criminal activities

Considering a big percentage of Bitcoin transactions are remittances, this is always going to become a concern for the Nigerian Central bank, which views remittance control as an easy way to accomplish its exchange rate objectives.

Another possible basis for the ban is the usage of crypto through the #EndSARS protest. Throughout the anti-police brutality protests that rocked Nigeria in October 2020, young adults resorted to crypto assets as an easy way in order to avoid CBN restrictions on the accounts.

Why do Nigerians love bitcoin?

As a fiat currency, the naira is prone to inflation and devaluation, A substantial amount of Nigerian youths would rather store assets in bitcoins or stablecoins thus would prefer to pay reasonably limited via P2P trading which will be increasingly becoming difficult amid the CBN crypto ban

In comparison to existing traditional channels, bitcoin’s transactions are extraordinarily better to execute because of their borderless nature.

Conclusion

Bitcoin has outperformed any Nigerian assets since its emergence. An increasing amount of Nigerians aren’t stopping owning one of the very disruptive financial asset classes in human history. They’re, therefore, willing to pay for reasonably limited to keep crypto whatever the central bank’s ban.

Source: NairaMetrics

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