It is no secret that Nigeria is one of the countries with the most crypto-friendly population. Despite attempts by the government to hamper this by declaring crypto transactions outright illegal, residents of Africa’s largest country have remained adamant in their support for cryptocurrencies.
At present, Nigeria is the eleventh country on the “Global Crypto Adoption Index” list which is maintained by Chainalysis. Even though the current bear market has been going on for a while, citizens have chosen to stick with cryptocurrency.
A growing number of young Nigerians are looking to cryptocurrencies like bitcoin as a credible alternative to gold, which is the oldest and most established safe-haven asset in the world.
Data collected by Chainalysis reveals that a critical mass of users who have invested money in cryptocurrencies during rising prices prefer to stay even when prices fall, allowing the ecosystem to grow constantly on the net throughout several market cycles.
The fact that cryptocurrency has the ability to bridge the economic gap while meeting personal and business needs in areas such as remittances, e-commerce, payments, wealth preservation and social good is a major contributing factor to the country’s growing interest in the asset. .
The tireless youth of Nigeria and crypto
Youssef learned that Nigerians live under what he calls “economic apartheid” while traveling in the country and through conversations with locals. This term describes a situation in which a person’s ability to improve their life and situation is limited due to financial exclusion.
He went on to say that the whole southern hemisphere is afflicted with the same problem, which is the cause of their inability to get ahead in life and is not, according to popular belief, due to laziness or the corruption of their go. Youssef was firm in his assertion that Nigeria will eventually lead the continent in crypto adoption.
There is no limit to Nigerians’ enthusiasm for cryptocurrencies, and it is expected that the country will reach a hundred percent adoption rate by 2030.
Additionally, the news that cryptocurrency exchange Bitnob has signed a multi-year sponsorship deal with the Nigeria Professional Football League has just been made public.
This development represents an important step in Nigeria’s journey towards widespread acceptance of cryptocurrencies. For this reason, Nigeria is now at the forefront of the race to include cryptocurrency in sporting events.
e-Naira was not a success
The cryptocurrency issued by Nigeria’s central bank, known as CBDC, is not getting the enthusiastic response expected from crypto connoisseurs in the country.
A year after its introduction, the Nigerian government’s digital currency, eNaira, is used by less than 0.5% of the country’s population of 217 million, according to a Bloomberg report.
The provision of services to cryptocurrency exchanges in Nigeria is now prohibited by order issued by the Central Bank of Nigeria, which applies to all licensed financial institutions.
As part of the ban, the CBN has issued instructions to all commercial banks to close the accounts of cryptocurrency exchanges and any other businesses in the country that deal in cryptocurrency transactions.
Additionally, he issued a stern warning that severe penalties would be imposed on any bank or other financial institution that fails to comply with the instruction.