February 2022 marks one 12 months for the reason that Central Financial institution of Nigeria (CBN) positioned a ban on banks from facilitating cryptocurrency buying and selling. Regardless of this restriction, crypto buying and selling has been thriving in Nigeria, Africa’s greatest financial system.
Regardless of rising scams within the Nigerian crypto market, demand for P2P buying and selling has seen important development over the previous years.
New information reveals that peer-to-peer Bitcoin buying and selling quantity has elevated over 16% for the reason that CBN restriction final 12 months. Nigeria continues to champion crypto adoption in Africa.
Bitcoin P2P buying and selling surges over 16% for the reason that banking ban on crypto buying and selling
Information from UsefulTulip, an internet site that tracks peer-to-peer Bitcoin buying and selling the world over, reveals that Bitcoin buying and selling in Nigeria has been on the rise. Within the final 12 months, peer-to-peer Bitcoin buying and selling quantity had surged by over 16% within the nation. This has been regardless of an current ban the nation’s highest monetary physique, the Central Financial institution of Nigeria (CBN) positioned on Nigerian banks from facilitating crypto buying and selling precisely a 12 months in the past.
Cryptocurrency has no place in our financial system presently, and cryptocurrency transactions shouldn’t be carried out by the Nigerian banking system, Godwin Emefiele, the governor of the CBN stated on the time.
The CBN ban, whereas not forbidding crypto buying and selling, created difficulties for Nigerian crypto traders. As banks will not be out there to assist with making direct deposits to crypto exchanges, Nigerians largely resorted to buying and selling on peer-to-peer platforms like Paxful, LocalBitcoins, and Binance.
Nonetheless, the federal government has additionally been clamping down on residents it suspects of nonetheless finishing up crypto buying and selling by banks.
Amidst the banking restriction on facilitating crypto buying and selling, the CBN has gone forward to launch a Central Financial institution Digital Forex (CBDC), the eNaira, making Nigeria one of many first nations to take action.
Africa is likely one of the rising stars in crypto adoption globally
Nigeria’s excessive peer-to-peer Bitcoin buying and selling quantity has contributed considerably to the adoption of crypto in Africa. Information from UsefulTulip additionally reveals that Sub-Saharan Africa has had one of many highest Bitcoin P2P buying and selling volumes on this planet, rivaling volumes in North America.
Different African nations the place digital forex adoption is quickly rising embody Kenya, Mali, and South Africa. Like Nigeria, monetary regulators in these nations are additionally wanting into the rising development and pondering of the way to guard traders. South Africa’s Monetary Sector Conduct Authority (FSCA) lately issued two client warnings in opposition to FTX and Bybit crypto exchanges.
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