According to data from LocalBitcoins and Paxful, peer-to-peer bitcoin trade in Nigeria has surged by more than 15% year on year after the country’s central bank imposed a crypto ban. Weekly bitcoin trade volumes are currently at a pause, most likely due to the market’s decline. The Central Bank of Nigeria imposed a crypto ban in February 2021, but it hasn’t done much to reduce trading. During the year, cryptocurrency adoption increased to 24 percent, making it the country with the highest adoption rate, ahead of Malaysia and Australia.
P2P platforms enable buyers and sellers to sell directly to one another without the need for a central platform. It is often used in countries where cryptocurrency trading is prohibited. In Nigeria, these sites are now used to trade approximately $400 million.
The residents of Nigeria and other African countries are particularly interested in cryptocurrency, as seen by the high adoption rate. Crypto supporters in Nigeria have begun to take the fight to the central bank, with a court battle likely to begin this year. In the midst of all of this, Nigeria’s central bank has been accused of “financial terrorism.”
The Nigerian Vice President has requested the central bank to regulate cryptocurrency rather than outright prohibit it. It remains to be seen if this, together with lobbying from pro-crypto groups, will have an impact.
Nigeria, on the other hand, has demonstrated a strong interest in a central bank digital currency (CBDC) and has developed an e-Naira website. This looks to be its primary emphasis in terms of blockchain and crypto advancements, as it is in other countries.
