Nigeria’s cryptocurrency usage highest in Africa despite CBN directives
Nigeria’s crypto market has remained as a key transactional vehicle in the sub-Saharan nation.
This was despite Central Bank of Nigeria (CBN) directives restricting licensed banks from engaging in cryptocurrency-related activities.
Currently, Nigeria has a population of 223 million, making it one of the fastest-growing countries in Africa and one of the youngest in the world, according to a United Nations and Interest study. 43 per cent of the country is under 15 years old.
Nigeria’s cryptocurrency usage remains the highest in Africa and one of the most developed countries in the entire world, with an annual growth rate of 9 per cent despite the recent pullback on Bitcoin’s interest Chainalysis report, showed that Nigeria ranks third in the list of only six countries that have recorded consistent growth since 2021.
Stablecoins are now the preferred crypto asset in Nigeria because they are pegged to a popular reference asset, the American dollar to hedge against inflation and the naira devaluation Currently, USDT is the most widely traded stablecoin in Nigeria.
Nigerian businesses and the diaspora population are also adopting USDT and other stablecoins to facilitate payments. It is no longer uncommon to see tour operators in Nigeria quote their packages in US dollars and offer USDT as a payment option.
The naira is the worst-performing currency in Africa and has lost four-fifths of its value this year alone against the American dollar
Bitcoin has notched a strong ending this year despite recent pullbacks in price action. If today were the last day of 2023, the king of digital assets would have returned almost 150 per cent, marking the best year since 2020, when it rose a phenomenal 305 per cent.
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