Recent bi annual report shows that Nigeria’s peer-to-peer transactions increased by 25%, Nigeria now has $219 million in P2P volumes on two major P2P according to 2 crypto exchange platform surveyed, followed by Kenya with $92 million and Ghana with $69 million.
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Despite government rules limiting crypto trades within financial institutions in an effort to protect citizens and monitor the technology’s growth, many Nigerians have continued to engage in crypto despite the weakening naira as shown in the underground market.
According to Chainalysis Research, many inhabitants in emerging economies such as Nigeria use cryptocurrencies “to protect their funds against currency depreciation, send and receive remittances, and conduct business transactions.”
The Nigerian Securities and Exchange Commission recently released guidelines on the issuance and custody of digital/virtual assets such as Bitcoins and non-fungible tokens (NFTs) in the country, reportedly in response to an increase in trading activity according Nairametrics report.
Despite CBN’s recent interventions, the naira has continued to weaken, with the parallel market finishing last week at N610 per dollar thereby pushing many young Nigerians to hold Bitcoin and other crypto-assets like stablecoins, amid the ongoing bearish trend.
Citizens also use the flagship crypto for remittance services, in which they trade bitcoin or other cryptocurrencies for Naira OTC. A Nigerian Over-the-Counter (OTC) trader, for example, could offer to buy bitcoin from another Nigerian and pay in Naira. Millions of Nairas are exchanged daily for OTC trades, providing dealers with a steady source of money.
Nigeria, according to Statista, is one of the African countries with the highest population as well as the highest number of cryptocurrency adoptions.
According to Google Trends, Nigeria had the third-highest number of bitcoin searches in the world at the time of writing, indicating the cryptocurrency’s expanding utility in Africa’s largest economy.