Bitcoin in Nigeria: Banned but Thriving
Nigerians are known to be very creative with finding ways when there seems to be no way. They have done it again with Bitcoin.
In February, the Central Bank of Nigeria (CBN), issued an order that restricted all Nigerian financial institutions from carrying out any cryptocurrency-related transactions. Many Nigerians were not happy with this development.
Nearly three months later, a research and data report from Usefultulips states that Nigerians have been utilizing other alternatives to buy and trade bitcoins. With a 27% increase since the CBN ban, Nigerians are said to have carried out transactions over $103 million worth of bitcoins through alternative channels.
The inflation rate in Nigeria is constantly on the rise, limiting the financial capacity of Nigerians when the local currency, Naira, is used. The ‘young blood’ and love for technology that lives in the average educated Nigerian Millenial or Gen Z has also contributed greatly to Bitcoin’s spiraling popularity and rise in Nigeria.
It is also safe to say that Nigerians are in love with how effortless Bitcoin payment transactions are as well as its almost non-existent transaction fees. These are advantages that not many Nigerian financial institutions offer.
Daily, the number of Nigerians who have refused to let go of cryptocurrency in spite of the ban is increasing and more are beginning to embrace the idea of paying a fee in order to have cryptocurrency in their possession.
Do you think the Central Bank of Nigeria will consider lifting the ban on cryptocurrency transactions?
