Nigeria is Africa’s biggest crypto market amid bank trading ban

Nigeria, Africa’s largest economy, has a reputation for having one of the highest cryptocurrency adoption rates in the world. In fact, more than a third of all cryptocurrency owners in Africa reside in this nation.

In terms of ownership of cryptocurrencies, Africa lags behind the rest of the world. According to the most recent data on Triple A’s cryptocurrency ownership, 53 million people on the continent already own digital currencies such as Bitcoin (BTC) and Ethereum (ETH), making up more than 16.5% of the more than 320 million cryptocurrency owners in Worldwide.

On the continent, Nigeria has the largest number of digital asset owners. More than 22 million people in the nation, or more than a third of the continent’s population, own digital currencies.

Nigeria is ranked fourth in the world according to the Triple A rating of bitcoin owners. With 46 million owners, the US tops the list, followed by India and Pakistan in second and third slots respectively, with 27.4 million and 26.4 million owners of cryptocurrencies.

Crypto asset owners and traders are primarily motivated by financial gains and remittances despite CBN’s crypto ban.

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Ban on crypto transaction in Nigeria

  • Recall that the CBN has sent a circular to banks and other financial institutions banning cryptocurrency transactions and allowing payments for cryptocurrency exchanges. It is illegal for Nigerian banks to provide services to customers trading in digital currency.
  • Banks quickly complied with the law and closed the accounts of cryptocurrency exchanges and individual users in response to the imminent threat of huge fines.
  • Most young Nigerians are currently unemployed. The most populous country in Africa has the third highest official unemployment rate in the world, with nearly one in three young people unemployed.
  • Nigerian university students have joined this dormant congregation because the Academic Staff Union of Universities (ASUU) has been on strike since the first quarter. Cryptocurrency trading is one way these young Nigerians keep themselves busy and make a living.
  • Despite losing more than 65% of its value since the peak in November, the leading cryptocurrency has nonetheless proved to be one of its best financial assets for a long time among many young Nigerians.
  • Unsurprisingly, when it comes to the “number of people searching for” bitcoin “and” blockchain “terms on Google,” Nigeria tops the list of African countries. Another study suggests Nigeria is the most cryptocurrency obsessed nation.

Other African countries with most cryptocurrency owners

With 7.7 cryptocurrency owners or 12.5% ​​of the population, South Africa has the second highest percentage of cryptocurrency owners on the African continent, behind only Nigeria. Kenya in third place has 6.1 million cryptocurrency owners or 11.6% of its total population.

The bottom two of the top five African countries with the most cryptocurrency owners are Egypt and Tanzania, with 2.37 million and 2.32 million owners each respectively. Seychelles, which has around 1,257 cryptocurrency owners, is the least ranked African country.

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These numbers indisputably demonstrate how fruitless, in this case, the effect of the ban on cryptocurrency trading through Nigerian banks despite many users buying at a premium. Industry stakeholders have already voiced their concerns about the need for government regulatory reform.

On multiple occasions, stakeholders, especially those in the Blockchain technology industry, have said that Nigeria will benefit from advances in cryptocurrencies.

It is also important to note that industry participants are pleading with the government to encourage the development of cryptocurrency amid so many untapped opportunities.

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