Nigeria Bitcoin P2P Transaction Volumes Drops As F2F Model Emerges
The P2P crypto transaction platform in Nigeria has witnessed huge decline following the Central Bank of Nigeria unending clampdown leading to the emergency of a new transaction model called F2F (Face To Face) peculiar to the Nigeria cryptocurrency ecosystem.
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According to reports, last week, Nigeria’s peer-to-peer transactions dropped by 43%. Nigerians posted weekly P2P volumes of about $9.4 million, followed by Kenyans and South Africans with nearly $2.8 million and $1.8 million respectively.
Peer to peer in BTC refers to an exchange of BTC between parties (such as individuals) without involving a central authority. Peer to peer exchange of Bitcoins between individuals and groups takes a decentralized approach but still, a growing number of Nigerians use their banks to settle in cash while carrying out their P2P trading.
The creative Nigeria crypto community has devised an avenue to escape the bothersome CBN intrusion through the introduction of a new trading platform called Face2Face. This involves contacting potential buyers on the P2P platforms and meeting in an agreed location to exchange funds. A source hinted to diutocoinnews that plans are underway to set up Face2Face physical shops/kiosks to facilitate crypto business completely detaching from using CBN regulated banks.
P2P transactions are on the decline partly because the Central Bank of Nigeria recently ordered commercial banks to freeze the accounts of individuals trading crypto. The directive has once again reiterated its stance in a post-no-debit circular dated November 3rd 2021, issued by J.Y. Mamman, the Bank’s Director of Banking Supervision.
Banking regulators appear to be closing accounts of residents and companies that trade cryptocurrencies as part of a broader plan. Banks were previously forbidden by the central bank from servicing crypto exchanges earlier this year.