Despite the ban on the crypto trade in the country, Nigeria has emerged as a leader in Africa. Of the 53 million people operating in the cryptocurrency market on the African continent, 22 million are said to reside in Nigeria.
Cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system that uses cryptography, rather than a centralized authority.
“Decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation.”
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.
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 the Central Bank of Nigeria (CBN) crypto ban.
It will be recalled that the CBN has sent a circular to banks and other financial institutions that prohibit cryptocurrency transactions and allow 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.
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.