Nigeria’s Crypto Adoption Continues To Surge Amid Economic Challenges: Report

2023-9-20 00:00

Nigeria, Africa’s most populous nation, has witnessed a burgeoning interest in digital currencies. According to a report, Nigeria’s recent spike in crypto usage can be attributed to economic conditions and the nation’s youth-driven technological resurgence.

The implications of this growing trend can’t be understated, especially considering Nigeria’s position as Africa’s largest economy. Nigerians are seeking viable alternatives for their financial activities, with the naira experiencing significant devaluation and inflation rates soaring.

Crypto Transactions Surge Amid Naira Devaluation

According to a New York-based blockchain analytics firm Chainalysis report, Nigeria’s cryptocurrency transactions swelled 9% year-over-year, reaching $56.7 billion between July 2022 and June 2023.

This growth in digital asset adoption is similar in neighboring countries: Uganda saw its crypto usage skyrocket by 245% to $1.6 billion. In Kenya, the situation is different as the country experienced a sharp decline in crypto adoption, with its usage plummeting by over 50% to $8.4 billion, according to Reuters.

This uptick in Nigeria’s crypto activity coincides with significant economic turbulence. Notably, the naira’s value dropped considerably in June and July 2023. Such financial instability has pushed many Nigerians towards Bitcoin and stablecoins.

These digital tokens, especially stablecoins, have their value anchored to stable assets, offering a semblance of financial predictability amid the wild fluctuations common to the digital currency world.

Presidential Reforms And Cryptocurrency Regulation

According to Reuters, the naira’s dive to record lows can be traced back to a series of bold measures instituted by President Bola Ahmed Tinubu. Some of the most significant changes involved the removal of a widely used petrol subsidy and lifting of certain exchange rate constraints.

Moyo Sodipo, co-founder of the Nigeria-based digital currency exchange Busha, elucidated the populace’s sentiment, stating:

People are constantly looking for opportunities to hedge against the devaluation of the naira and the persistent economic decline since COVID.

However, it’s worth noting that the Nigerian government’s relationship with cryptocurrencies has been tenuous. In 2021, the country’s government banned banks and financial institutions from processing or facilitating cryptocurrency transactions.

The ban was imposed, citing concerns over money laundering, terrorism financing, cybercrime, and the volatility of cryptocurrencies. Yet, in a seeming change of heart, Nigeria’s Securities and Exchange Commission (SEC) rolled out a series of regulations for digital assets in the subsequent year.

Titled the “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” on its official site, the rule is detailed in a 54-page regulation structure for digital asset launches and safekeeping. This guideline positions these assets under the purview of the SEC as securities.

The commission has clearly stated that any exchange dealing in digital assets must first obtain a clearance of “no objection” from them to operate legally. Moreover, these exchanges have a registered fee of 30 million naira (equivalent to $72,289) and other associated charges.

Reuters describes this decision as an attempt by Nigeria to strike a balance between a total crypto ban and its rampant use.

Featured image from iStock, Chart from TradingView

Similar to Notcoin - Blum - Airdrops In 2024

origin »

DeFi Nation Signals DAO (DSD) на Currencies.ru

$ 0.7302 (-1.02%)
Объем 24H $0
Изменеия 24h: 5.18 %, 7d: -4.39 %
Cегодня L: $0.7089 - H: $0.7302
Капитализация $0 Rank 3664
Доступно / Всего 0 DSD / 50k DSD

nigeria report crypto nation economic recent spike

nigeria report → Результатов: 25


Nigeria’s eNaira stablecoin becomes focus of new IMF report

Nigeria’s central bank digital currency project, eNaira, is drawing attention and interest of leading financial institutions and it also gaining traction amongst other country’s central banks looking to initiate a similar project according to a report released by the International Monetary Fund (IMF) eNaira to boost remittance The report, authored by economist Jack Ree, explained […] The post Nigeria’s eNaira stablecoin becomes focus of new IMF report appeared first on CryptoSlate.

2021-11-22 11:00


Remittance and Fiat Devaluation Drives 1200% Growth in Africa’s Crypto Market: Chainalysis Report

Africa, the smallest crypto-economy, which received $105.6 billion worth of cryptocurrency between July 2020 and June 2021, saw a growth of more than 1200% by value received in the last year. According to a report by Chainalysis, the region is seeing some of the highest grassroots adoption in the world, with Kenya, Nigeria, South Africa, […] The post Remittance and Fiat Devaluation Drives 1200% Growth in Africa’s Crypto Market: Chainalysis Report first appeared on BitcoinExchangeGuide.

2021-9-16 22:26


Фото:

New World Bank Report: Nigeria’s Exchange Rate Policies Fueling Inflation, Affecting Food Prices

Nigeria’s use of multiple exchange rates regimes may have contributed to a rise in the country’s inflation rate, the latest World Bank report has said. In addition, the report says ongoing restrictions on the use and movement of foreign exchange are “further pushing up prices of food and agricultural inputs like fertilizer.” Misaligned Exchange Rates […]

2021-6-22 14:30


Фото:

Mastercard Payment Index: More Consumers in Three African Countries Plan to Use Crypto Based Payment Methods

According to a recent Mastercard payment index report, the Covid-19 related lockdowns helped spread the use of cryptocurrency in three African countries, namely Nigeria, Kenya, and South Africa. The report also reveals that a greater number of consumers from these countries are “likely to use one emerging payment method in the coming year.” More Respondents […]

2021-5-12 07:00


Фото:

Nigerians Using Bitcoin for International Trade Despite Regulatory Uncertainties 

Bitcoin (BTC), the world’s flagship cryptocurrency is rapidly gaining traction around the world as a tool for international trade and commerce. Several forward-thinking businessmen in Nigeria are now using the blockchain-based digital currency to scale the hurdles of foreign exchange in the region, according to a report on August 13, 2020.

2020-8-14 23:07


Фото:

Nigeria caught in WhatsApp fake news whirlwind ahead of elections

After numerous infamous cases of people in India and Brazil falling prey to fake news spread on WhatsApp, the problem is now spreading to Nigeria. The West African nation is hosting its national elections in February next year, and a report from The Poynter Institute says its citizens are at risk of being conned by misinformation surrounding political parties – and it’s reaching people through WhatsApp.

2018-12-3 11:35