The Nigerian government has always been diplomatic about cryptocurrency. In 2017, the Central Bank of Nigerian released a circular against virtual currencies. But earlier this year, a new law was made to outrightly ban cryptocurrency in Nigeria.
Thus, it was difficult for Nigerians to fund their wallets or withdraw into their local bank accounts. And a few people lost their equities because of this.
Although the ban of cryptocurrency-related activities hindered in a way, Nigerians have also been resilient in their quests to own and trade digital assets.
“Necessity is the mother of invention,” they say. This new problem made Nigerian crypto traders to start using P2P trading for funding and withdrawals. They make use of mobile bank apps like Kuda and Flux.
Therefore, it is not surprising that Nigerians have traded $204 million worth Bitcoin through P2P trading. According to Olumide Adesina who gave the report of the statistics, Nigeria is by far the country that has done the highest P2P Bitcoin trading in Africa; followed by Kenya and Ghana.
According to Binance (which is the most used crypto app in Nigeria), the percentage of P2P traders in Africa has experienced an exponential-shift to over 2,200%. And within this percentage, Nigeria takes the highest.
There were a lot of reasons Nigerians are digital assets conscious. And prime among this is a better store of value. One dollar is equivalent to around 500 naira.
With the nose-diving value of naira, Nigerians prefer to have their assets in cryptocurrency. Hence, part of the reasons for the pump in P2P BTC.
At the moment, the consciousness of cryptocurrency in Nigeria has increased. On Average, six out of every ten young Nigerians have heard about Bitcoin or crypto before.
Thus, the $204 million P2P BTC trading milestone is nothing compared to the large incoming number of users coming from Nigeria. Some analysts even predict that this figure might double before this year ends.