It is not a secret that Nigeria is one of the nations with the most crypto-friendly populace. Despite the attempts of the government to hinder that by declaring crypto trades outright illegal, the residents of Africa’s biggest country have remained unyielding in their support of cryptocurrencies.
As of right now, Nigeria is the eleventh nation on the ‘Global Crypto Adoption Index’ list that is maintained by Chainalysis. Even though the present bear market has been going on for quite some time, the citizens have opted to stick with cryptocurrency.
A rising number of young people in Nigeria regard cryptocurrencies like bitcoin as a credible alternative to gold, which is the oldest and most established safe-haven asset in the world.
The data collected by Chainalysis reveals that a critical mass of users who have invested cash into cryptocurrencies during times of price increase prefer to remain even when prices decrease, which enables the ecosystem to constantly expand on the net throughout several market cycles.
The fact that cryptocurrency has the ability to bridge the economic gap while also satisfying personal and commercial needs in areas like as remittance, e-commerce, payments, wealth preservation, and social good is a major factor contributing to the country’s rising interest in the asset.
The indefatigable youths of Nigeria and crypto
The mental toughness and tenacity of Nigerians, along with the arrival of Bitcoin rails in the nation, is making a genuine impact in breaking down economic segregation, according to Ray Youssef, founder and CEO of Paxful, in an interview with a blockchain media outlet.
Youssef learned that Nigerians live under what he refers to as “economic apartheid” on a trip to the country and via conversations with locals. This term describes a situation in which a person’s ability to improve their lives and circumstances is restricted due to financial exclusion.
He went on to say that the whole Southern Hemisphere is afflicted with the same issue, which is the cause of their incapacity to advance in life and is not, according to popular belief, due to sloth or corruption on their part. Youssef was firm in his assertion that Nigeria will ultimately be the continent’s leader in the adoption of crypto.
There is no limit to the excitement that Nigerians have for cryptocurrencies, and it is projected that the nation would achieve a rate of adoption of one hundred percent by the year 2030.
Moreover, the news that cryptocurrency exchange Bitnob has inked a multi-year sponsorship contract with the Nigeria Professional Football League was only just made public.
This development represents a significant step forward in Nigeria’s journey toward the widespread acceptance of cryptocurrencies. Because of this, Nigeria is now at the forefront of the race to include cryptocurrency in sporting events.
e-Naira has not been a success
The cryptocurrency issued by Nigeria’s central bank, known as the CBDC, is not receiving the enthusiastic response that was anticipated from the country’s crypto-savvy people.
One year after its introduction, the government of Nigeria’s digital currency, the eNaira, is being used by less than 0.5 percent of the country’s population of 217 million people, according to a report from Bloomberg.
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 prohibition, the CBN has given instructions to all commercial banks to shut the accounts of cryptocurrency exchanges and any other firms in the nation that deal in cryptocurrency transactions.
In addition, it issued a stern warning that severe punishments would be imposed on any bank or other financial institution that did not comply with the instruction.