Does Nigeria Accept Bitcoin?
Despite the Nigerian government’s ban on cryptocurrencies, their usage is prevalent in the country and the ban has minimal impact. Instead, the Nigerian cryptocurrency community has turned to peer-to-peer trading or the direct exchange of funds. Nigeria has exchanged 60,215 bitcoins worth more than $566 million on Paxful, the world’s biggest peer-to-peer bitcoin marketplace, during the last five years. According to Coin-Dance figures for 2020, bitcoin trading in Nigeria increased by at least 19 percent annually, with the highest volume (20,504.50) traded in 2020 during the height of the epidemic. In Nigeria, Paxful had a 137 percent increase in new registrations between January and September of 2020. ..
Does Nigeria Accept Bitcoin?
The Central Bank of Nigeria (CBN) warned Nigerian banks and financial institutions in February 2021 against dealing in cryptocurrencies and facilitating cryptocurrency trades. The Central Bank of Nigeria (CBN) has instructed all banks and financial institutions to identify and cancel cryptocurrency exchangers’ accounts.
Cryptocurrencies are not legal in Nigeria, as they are not regulated by the government. This means that their use violates existing legislation, which is why CBN is asking the Nigerian government to ban their use.
The CBN stated that the anonymity of cryptocurrencies is a significant issue, stating that the anonymity and lack of KYC make cryptocurrencies susceptible to criminal uses such as money laundering and terrorist financing. Moreover, according to the CBN, the volatility of cryptocurrencies threatens the stability of the financial systems of other nations.
Nigeria has banned banks and several financial institutions from engaging in cryptocurrencies transactions. Although cryptocurrencies are not illegal, they are unregulated. The difficulty in regulating cryptocurrencies may be attributed to a lack of knowledge of how cryptocurrencies operate and how criminals are starting to use them.
Increasing crypto usage in Nigeria despite CBN ban:
Cryptocurrencies are becoming increasingly popular in Africa as a way to hedge against currency depreciation, transfer money cheaply, or make a livelihood. Nigeria still has the lion’s share of peer-to-peer transactions in Africa.
Cryptocurrencies are growing in popularity in Africa, with P2P trading volumes surpassing those of Kenya and South Africa. This is due to the lack of government restrictions in Nigeria, which has made crypto groups more resilient to financial censorship. The value of crypto traded on African exchanges increased by a thousandfold in 2021 according to a study. ..
Despite the government crackdown in early 2021, Africa’s biggest cryptocurrency market reacted by shifting to peer-to-peer platforms like Paxful and Binance, making it more difficult for the government to monitor and ban such transactions.
Why the CBN must relax the restriction on crypto in Nigerian banks?
•Economic benefits:
Nigerians are turning to blockchain technology to diversify their income streams and protect themselves from economic downturns. Poverty, inflation, and unemployment rates are at all-time highs, but COVID-19 poses an additional threat. EFInA predicts that a disruptive technology may reduce obstacles to financial inclusion in Nigeria. If this proves true, Africa’s biggest economy may see its GDP grow by up to $29 billion by the end of the decade. ..
How to get Cryptocurrencies in Nigeria?
•Bitcoin ATM
There are several Bitcoin ATMs in Nigeria, so take your favorite! The good news is that these machines make it simple to change local money to Bitcoin. In addition, they let you maintain total anonymity. The disadvantage of hiring such services, however, is that you may incur fairly high prices. Sadly, this is the cost of perfect anonymity!
•Peer-to-peer exchanges;
This method entails doing transactions with other persons as opposed to buying from licensed suppliers. Choose a payment method and price, and the exchange will match you with the most appropriate buyer. Before money is released from the escrow system, the buyer must verify that the transaction has been completed correctly. ..
•Crypto exchanges
Cryptocurrency brokers are an excellent alternative to making typical internet transactions. They are quick and uncomplicated, much unlike making a typical transaction through a credit card or bank transfer. However, not all cryptocurrency exchanges welcome Nigerian clients, so do your research ahead. ..
•Crypto trading platforms:
Cryptocurrency trading platforms are a great way to get started with cryptocurrency. First, deposit fiat cash into an online wallet and then choose the crypto trading platform that best suits your needs. Be sure to do thorough research before making any investment, as some platforms may not allow Nigerian users or other specific conditions.
Conclusion;
The Central Bank of Nigeria (CBN) should collaborate with cryptocurrencies and blockchain technology, as this could disrupt conventional banking and central banking in ways that we have not yet imagined. ..
A cryptocurrency exchange is a website where people can buy and sell cryptocurrencies.
Bitcoin is a digital asset and a payment system invented by an unknown person or group of people under the name Satoshi Nakamoto. Bitcoin is decentralized, meaning that there is no single administrator or governing body for Bitcoin. Bitcoin can be exchanged between people who have access to money and those who don’t.
Bitcoin exchanges are crucial because they allow people to buy and sell bitcoins, which is the digital currency that uses a blockchain technology. The blockchain is a secure digital ledger that keeps track of all bitcoin transactions.
A Bitcoin exchange is a website where people can buy and sell bitcoins. This website also provides information about the digital asset’s current market price. ..
