February 2022 marks one yr for the reason that Central Financial institution of Nigeria (CBN) positioned a ban on banks from facilitating cryptocurrency buying and selling. Regardless of this restriction, crypto buying and selling has been thriving in Nigeria, Africa’s largest financial system.
Regardless of growing scams within the Nigerian crypto market, demand for P2P buying and selling has seen vital development over the previous years.
New information exhibits that peer-to-peer Bitcoin buying and selling quantity has elevated over 16% for the reason that CBN restriction final yr. Nigeria continues to champion crypto adoption in Africa.
Bitcoin P2P buying and selling surges over 16% for the reason that banking ban on crypto buying and selling
Information from UsefulTulip, a web site that tracks peer-to-peer Bitcoin buying and selling internationally, exhibits that Bitcoin buying and selling in Nigeria has been on the rise. Within the final yr, peer-to-peer Bitcoin buying and selling quantity had surged by over 16% within the nation. This has been regardless of an present ban the nation’s highest monetary physique, the Central Financial institution of Nigeria (CBN) positioned on Nigerian banks from facilitating crypto buying and selling precisely a yr in the past.
Cryptocurrency has no place in our financial system at the moment, and cryptocurrency transactions shouldn’t be carried out by way of the Nigerian banking system, Godwin Emefiele, the governor of the CBN stated on the time.
The CBN ban, whereas not forbidding crypto buying and selling, created difficulties for Nigerian crypto buyers. As banks are usually not accessible to assist with making direct deposits to crypto exchanges, Nigerians largely resorted to buying and selling on peer-to-peer platforms like Paxful, LocalBitcoins, and Binance.
Nonetheless, the federal government has additionally been clamping down on residents it suspects of nonetheless finishing up crypto buying and selling by way of banks.
Amidst the banking restriction on facilitating crypto buying and selling, the CBN has gone forward to launch a Central Financial institution Digital Foreign money (CBDC), the eNaira, making Nigeria one of many first nations to take action.
Africa is among the rising stars in crypto adoption globally
Nigeria’s excessive peer-to-peer Bitcoin buying and selling quantity has contributed considerably to the adoption of crypto in Africa. Information from UsefulTulip additionally exhibits that Sub-Saharan Africa has had one of many highest Bitcoin P2P buying and selling volumes on the planet, rivaling volumes in North America.
Different African nations the place digital foreign money adoption is quickly rising embody Kenya, Mali, and South Africa. Like Nigeria, monetary regulators in these nations are additionally trying into the rising pattern and considering of the way to guard buyers. South Africa’s Monetary Sector Conduct Authority (FSCA) just lately issued two shopper warnings in opposition to FTX and Bybit crypto exchanges.
Disclaimer
The introduced content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.
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