In spite of the ban slammed on crpto trading in the country, Nigeria has emerged leaders in Africa. Out of the 53 million people trading in the crypto market in the African continent, 22 million are said to be residing in Nigeria.
Crypto currency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by 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 rates of cryptocurrency adoption worldwide. In actuality, more than a third of all crypto owners in Africa reside in this nation.
Nigeria is rated fourth in the world according to Triple A’s rating of bitcoin owners. With 46 million owners, the United States tops the list, followed by India and Pakistan at the second and third slots, respectively, with 27.4 million and 26.4 million crypto owners.
Owners and traders of crypto assets are primarily motivated by financial gain and remittance despite Central Bank of Nigeria (CBN)’s crypto ban.
It will be recalled that the CBN sent a circular to banks and other financial institutions outlawing cryptocurrency transactions and enabling payments for cryptocurrency exchanges. It is illegal for Nigerian banks to provide services to clients who deal in digital currency.
Banks quickly complied with the law and closed the accounts of cryptocurrency exchange companies and individual users in response to the approaching threat of enormous fines.
The majority of Nigeria’s youth are currently unemployed. Africa’s most populated country has the third-highest official unemployment rate in the world, with nearly one in three young people unemployed.
Nigerian university students have joined this idle congregation because the Academic Staff Union of Universities (ASUU) has been on strike since the first quarter. Trading cryptocurrencies is one way these young Nigerians stay busy and earn a living.
Despite losing more than 65% of its value since its peak in November, the leading cryptocurrency has nonetheless shown to be one of its best financial assets over a long-time frame among many Nigerian youths.
Unsurprisingly, when it comes to “the number of persons searching for “bitcoin” and “blockchain” terms on Google,” Nigeria tops the list of African countries. Another study suggests Nigeria is the world’s most crypto-obsessed nation.
With 7.7 crypto owners or 12.5 per cent of the population, South Africa has the second-highest percentage of cryptocurrency owners on the African continent, behind only Nigeria. Third-placed Kenya has 6.1 million cryptocurrency owners or 11.6% of its total population.