This Is Why Nigeria Is One Of The Global Leaders In Bitcoin Trading
This Is Why Nigeria Is One Of The Global Leaders In Bitcoin Trading. Estimates show that of the top 10 countries for trading volumes, Nigeria ranked third place after the US and Russia in 2020, generating more than $400m worth of transactions. The Central Bank of Nigeria devalued Nigeria’s currency, the naira, by 24% last year. There are fears of a further fall in value by as much as 10% this year.
Nigerians see crypto currencies as a way to get around foreign currency restrictions. Nena Nwachukwu from popular trading platform Paxful explains to the BBC that, “There are a lot of restrictions on what we can and cannot do with our foreign exchange. Nigerians find it easier to use crypto currency as an investment tool.”
Tola Fadugbagbe is a Nigerian citizen that supports Bitcoin as it was not until 2016 that online adverts for Bitcoin piqued his interest and he began his crypto currency journey. “I started intensive research. I was spending hours every day watching videos on YouTube and reading articles about Bitcoin. I didn’t have much money so I started with $100 to $200.” Fadugbagbe told the BBC.
“I’ll soon be moving into my own house, which I’m building. I have a farm – a very big one – courtesy of crypto currency. No Nigerian comes to crypto currency and wants to look back. It’s a big opportunity; I don’t do shares and government bonds. Those are scams, I trust crypto currency more.” he added. Success stories like Fadugbagbe’s have attracted millions of Nigerians to digital currencies such as Bitcoin.
However, according to the BBC, this year the Central Bank of Nigeria doubled down on its stance. In a statement released on 7 February it cited the need to protect the general public and safeguard the country from potential threats posed by “unknown and unregulated entities” that are “well-suited for conducting many illegal activities”. Since then, many Nigerians have reported that their bank accounts have been frozen due to crypto currency-related activity. Mr Fadugbagbe’s bank manager called to advise him that his account would be closed, giving him a day to transfer his funds. However, not everyone has been so fortunate.
