Cryptocurrency is a big deal in Nigeria because the country tops the list as the world’s most appreciators of digital assets. The opportunities are too many to behold that millions of people don’t want to miss out on what various blockchain technologies have to offer. That pushes more people to explore the ecosystem’s popular coins like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The development is also outstanding even though the Nigerian government hasn’t embraced the full potential of regulating digital assets in the country.
Is There Hope of Regulation?
Nigeria’s government hasn’t implemented laws to govern cryptocurrency. A recent turn of events saw the Central Bank of Nigeria (CBN) releasing a statement that banned its citizens from purchasing or selling Bitcoin and other assets.
In the same ruling, the CBN ordered all financial institutions to hold their dealings with crypto and stop providing their services to organizations and businesses engaging in crypto. It also ordered financial service providers to close the accounts of crypto investors. The bank was also particular about enforcing the law on anyone who breaches the directives.
The statement caused a lot of confusion as people did not know if they should go forward with crypto or consider other alternatives for surplus income. While many people thought cryptocurrency in Nigeria would not survive the harsh atmosphere, it unexpectedly grew. Nigerians have learned to adjust to the situation to continue their crypto activities without a fuss. That brings you to the following insight:
Reasons Why Crypto in Nigeria is Still Thriving
Peer-to-peer Transactions
P2P BTC to Naira transactions have stirred the crypto market in Nigeria, despite the government banning financial institutions from engaging in any activity of the sort. Many centralized exchanges were limited to operating before people found how to go about the restriction. Now, Nigerians don’t have to buy Bitcoin or any other cryptocurrency with the Naira. People buy from other crypto enthusiasts in the marketplace at a coin value worth the value of Nigeria’s local currency. On P2P exchanges, the buyer transfers the Naira to the seller’s bank account, and the seller sends the crypto coins to the buyer’s digital wallet.
The process requires no intermediaries to facilitate the transaction, and banks cannot depict the primary purpose of the transaction. Simply put, regulatory bodies cannot pinpoint transactions that involve crypto.
Global Money Transfers
Many Nigerians trade Bitcoin internationally because the coin and other altcoins are decentralized. The CBN might have banned cryptocurrency activities in the country, but the directive doesn’t apply for cross-border transfers. People took advantage of this fact even before cryptocurrency started to bloom in the country. This insight entails only a few factors that contribute to the development of cryptocurrency in the African country. If the trend continues, the government might suffer inflation of the Naira because it would continue to lose its value as more people invest in crypto. Regardless, the CBN still holds solid ground against crypto, and the possibility of shifting its stance is unknown.
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