Nigeria’s Bitcoin P2P jumps 25% in 180 days amid falling naira

Despite government rules restricting crypto transactions within financial institutions in an effort to protect citizens and monitor the growth of technology, many Nigerians have continued to engage in crypto despite the weakening naira, such as the shows the underground market.

On a semi-annual basis, Nigeria’s peer-to-peer transactions grew by 25%. Nigeria now has $219 million in P2P volumes on two major P2P platforms (Paxful and Localbitcoins), followed by Kenya with $92 million and Ghana with $69 million.

Nigeria recorded more than 16,000 transactions every day across the country in 2021, according to Paxful. The growing use of digital asset trading in the country is due to a variety of factors, one of which is to hedge against the steep depreciation of the local currency.

According to Chainalysis Research, many people in emerging economies like Nigeria use cryptocurrencies “to protect their funds against currency depreciation, to send and receive funds, and to conduct business transactions”.

The Nigerian Securities and Exchange Commission recently issued guidelines on the issuance and custody of digital/virtual assets such as Bitcoins and non-fungible tokens (NFTs) in the country, apparently in response to an increase in activity. commercial.

Despite recent CBN interventions, the naira has continued to weaken, with the parallel market ending last week at 610 naira to the dollar, pushing many young Nigerians to hold bitcoins and other crypto-assets like coins. stablecoins, in the middle of the ongoing downtrend.

Citizens also use the flagship crypto for remittance services, in which they exchange bitcoins or other cryptocurrencies for Naira OTC. A Nigerian over-the-counter (OTC) trader, for example, might offer to buy bitcoin from another Nigerian and pay in Naira. Millions of naira are exchanged daily for OTC transactions, providing dealers with a stable source of money.

Nigeria, according to Statista, is one of the African countries with the highest population as well as the highest number of cryptocurrency adoptions.

According to Google Trends, Nigeria had the third highest number of bitcoin searches in the world at the time of writing, indicating the growing utility of the cryptocurrency in Africa’s largest economy.

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