According to data from LocalBitcoins and Paxful, P2P trading volume for bitcoin in Nigeria has increased by 15% year-on-year. This is despite the ban on crypto implemented by the Nigerian Central Bank.
Data from LocalBitcoins and Paxful shows that peer-to-peer trading of bitcoin in Nigeria has increased by more than 15% year-on-year since the country’s central bank imposed crypto restrictions. The current weekly bitcoin trading volume is slightly down, probably due to the bearish market.
The Central Bank of Nigeria implemented a ban on crypto in February 2021, although it has not done much in terms of reducing trade. Crypto adoption continued to increase during the year, reaching 24% – making it the country with the highest adoption rate ahead of Malaysia and Australia.
P2P platforms allow buyers and sellers to sell directly between each other, avoiding any central platform. It is often used in countries where crypto trading is not allowed. Currently, there is a turnover of over $400 million in Nigeria between using these platforms.
Citizens of Nigeria and other African countries are very keen on crypto, as evidenced by the high adoption rate. Supporters of crypto in Nigeria are starting to take the fight to the central bank, and the legal battle will begin this year. Amidst all this, the Nigerian central bank has also been accused of ‘financial terrorism’.
However, it is not all doom and gloom. The Nigerian Vice President has asked the central bank to regulate crypto instead of banning it. Whether this, along with lobbying pro-cryptocurrency groups, has an effect remains to be seen.
Nigeria turns to CBDC instead
However, Nigeria has expressed great interest in a central bank digital currency (CBDC) and has launched a website for e-naira. It appears to be its main focus with respect to blockchain and crypto development, like other countries.
Governments are eager to capitalize on the benefits of distributed ledger technology. Primarily, they seek to digitize economies and introduce innovations, but also to remove any impact of crypto on national currencies.
Almost all major economies have announced experiments with respect to CBDCs, the most recent being India. Countries like China have already conducted several major trials, while others are in the proof-of-concept stage.