Are Nigerians and in diaspora using cryptocurrencies to bypass a struggling naira when they send money home to support family or start an investment? Do Nigerian Central Bank seems to think so ? Is that the reason for launching an e-naira to compete with Bitcoin and altcoins from October ? Many nagging questions have continued to bother stakeholders and the apex regulatory bank on why Naira has continued to spiral downwards despite numerous policies to push up Naira.
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Diaspora remittance inflow into Nigeria declined by a consequential 27% to $17.2bn, down from $23.5bn last year according to statistics from National Bureau of Statistics.
The steep decline was $4bn more than the projection by the World Bank. The global financial institution had predicted that diaspora remittances to Nigeria would decline by $2bn due to the devastating economic impacts of Covid-19 particularly in countries where the funds originate from.
Conversely, cryptocurrency trade by Nigerians has continued to surge despite the government ban. Is this a coincidence? Diutocoinnews asks if the remittances really have declined that much, or if much of the transactions evaded official records, having been rerouted through increased cryptocurrency trades ?
What do you think ?