Interest in cryptocurrency adoption, a form of digital currency, is growing steadily in Nigeria. Some economists say it is a disruptive innovation that will blossom on the continent. Nigerians are increasingly turning to cryptocurrencies as a means of exchange over local fiat currencies, according to
a new report from blockchain analytics firm Chainalysis. Data from the firm shows that many locals individuals and businesses are using cryptocurrencies to avoid high fees, regulatory complications, and currency instability.
Nigeria, which is the continent’s largest economy, South Africa, and Kenya lead the region in cryptocurrency transfers. Even Nigeria is experiencing a surge in the adoption of cryptocurrencies. Interestingly, the country has a number of local platforms that support purchases and sales of cryptos with the national currency. One such notable platform is Wiselevis which is one of the fastest growing local cryptocurrency exchanges supporting several payment methods to buy and sell BTC including bank transfers and gift-card trading. According to buybitcoinworldwide.com, a growing number of Nigerian companies already accept payments in cryptocurrency.
Mobile money has been a revolution in Nigeria and investors across the globe are recognizing its scope. On the back of formidable success of mobile money in Nigeria, a race to capture the African crypto market is driven by increased investment interest in cryptocurrencies. More recently, Twitter’s CEO Jack Dorsey announced his interest in the cryptocurrencies market in the African continent. Industry experts believe that cryptocurrency will be around for years. With that, bitcoin users can send money to just about anywhere there is an internet connection for relatively small fees and with no third-party interference is an advantage that standard government-issued currencies cannot offer.
Another recommendation is that transactions are anonymous, and users’ information is private and safe. It appears that there is a little possibility of identity theft which is common with other forms of digital payment. As of December 2017, the global demand for cryptocurrency had increased to an extent that each bitcoin was sold for $20,000. Its value had been $1,000 in the previous year.
Abbey Abiodun, who runs mini importation in Lagos, Nigeria’s largest city, started using Bitcoin to pay his Chinese suppliers. He shifted to crypto for speed and convenience. With Nigeria’s oil-dependent economy rocked by low crude prices and COVID-19, the central bank has twice devalued the naira this year. As a result, Local investors and other importers must pay more to buy increasingly scarce dollars. The naira’s fall has pushed many Nigerians towards bitcoin, the interviews showed, as they seek methods of purchasing goods from overseas without having to buy dollars.
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