These Five Trends have Skyrocketed the Adoption of Bitcoin in Nigeria 

These Five Trends have Skyrocketed the Adoption of Bitcoin in Nigeria 
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    Last updated on May 5th, 2021 at 08:27 am

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    Nigerians are well known for their ingenuity. Nigeria has the largest population on the African continent, yet it lacks sufficient formal employment opportunities for youth. 

    The result is a country of entrepreneurs ready to adopt BTC. There are certain  trends that has accelerated the adoption of cryptocurrency in Nigeria.

    These trends includes:

    • Support for EndSARS Protests

    Protests for the disbandment of the special anti-robbery squad (SARS) peaked in the middle of the year 2020. The police unit stands accused of illegal killings, extortion and torture of innocent civilians: many of its victims were young men between the ages of 18 and 35.

    As part of the protests, the #EndSARS hashtag went viral on social media, leading to protests in countries with large Nigerian diaspora populations. Concurrently, the central bank Froze the accounts of activist groups who needed funds for the protest, the groups had to swiftly move the donation platforms to cryptocurrencies. The Feminist Coalition raised $155,000 in Bitcoin, 40% of their $387,000 total.

    • Unemployment and Asuu Strike

    The unemployment rate in Nigeria is alarming and Sad to think about,with Nigeria holding the title “Giant of Africa” There is a level of economic growth that is expected which is not visible 

    And at this rate ,thousands of Nigerian youths are Left unemployed and they turn to the internet for Survival. 

    Since March 2020,Tertiary institutions have been on an indefinite strike which has left Thousands of Undergraduates home ridden, and in a bid to get Something done for themselves, they result to Crypto Trading, Forex Trading and involvement in Internet Based opportunities like AI,Data science,graphics designing and A lot more.

    Read Also: Bitcoin ATM in Africa (Full List): South Africa Records Highest Number of Bitcoin Teller Machine Followed By Ghana.

    • Central Bank Naira Restrictions

    The Nigerian Naira is on a multi-year drop versus the US dollar, 2020 was no different. Naira started the year around 360 to the dollar on “parallel markets” and is now close to crossing the psychologically important 500 Naira line.

    However, the Central Bank insists that these black market rates are illegitimate and the real Naira value is 25% higher. The import controls and monetary restrictions it uses to support that official rate is driving businesses to seek other ways to transact with international partners.

    • Diaspora Remittance Payments

    Nigerian Diaspora are also looking at cryptocurrency as the Central Bank shifts policy daily around who and what can be remitted to Nigerians. Remittances in 2020 had exceeded $22 Billion USD and the Central Bank is trying to use this massive monetary inflow to prop up the Naira.

    For example, the Central Bank has banned payment service providers, Mobile Money Operators, Switches, and Processors from receiving diaspora remittances. At the same time, International Money Transfer Operators must pay remittances in US Dollars and these restrictions are not favorable to Business People and Young Nigerians.

    • SEC Regulatory Acceptance

    In September, the Nigerian Securities and Exchange Commission made an announcement in regards to developing  a regulatory framework for cryptocurrencies adoption in the country. In November 2020, Nigeria’s Federal Ministry of Finance announced discussions with the SEC to provide a regulatory environment for blockchain-based digital assets and lift the ban on cryptocurrencies. 

    This would mean that digital assets like Bitcoin would be recognized as commodities and governed by appropriate securities law. The SEC would regulate this new asset class, not hinder adoption or innovation. Nigeria’s National Information Technology Development Agency even announced a National Blockchain Adoption Strategy, the essence of this Framework would be to Embrace Blockchain technology in the affairs of the nation.

    As Bitcoin and crypto adoption increases in Nigeria, BTC usage is increasing in other countries too. Kenya’s Bitcoin trading volumes skyrocketed by 472% in 2020 to stand at $45.95 million (Ksh 5.1 Billion). Kenya now only trails behind Nigeria in cryptocurrency adoption.

    In India, close to $74.92 million Bitcoins were traded on Paxful in 2020, a 347% increase over the previous year. India is now the second biggest BTC trading nation in Asia, after China, and the sixth biggest in the world, after the United States, Nigeria, China, Canada and the United Kingdom.

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    1 Comment

    1. Dora

      Moonlight everywhere indeed. Were gradually getting there.

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