TL; DR Breakdown
- The CBN’s ban on crypto sees an increase in premium to 36% in Nigerian Crypto Market.
- Ban centers on the safety of the fiat currency of the nation.
- The nation is still a crypto trading giant.
In adherence to the CBN’s order 12 days ago, Nigerian banks have begun to crackdown on transactions that are crypto related. Because of this, the regulation of Bitcoin price has been wavering, making the market unstable. Transactions are, however, still engaged via backdoor trading opportunities.
In accordance with the crypto ban, all financial institutions were instructed to cease any crypto related operation or face certain penalties. According to reports, the banks have begun to freeze individual accounts that have a history of constant crypto transactions.
36% premium placed on the Nigerian market
It is, however, interesting to note that the crypto market in Nigeria is still booming. Google trends noted that the Nigerian market has continued to be at the forefront of countries involved in the crypto market. What is also alarming is the fact that the massive 36% premium placed on the price of Bitcoin, as of Feb 2021, has not deterred the ardent traders from staying involved
The premium placed on Bitcoin means that the market price for Bitcoin in Nigeria is $71,150 per Botcoin from the average price rate of $51,314 per Bitcoin. When compared to the premiums placed on BTC in the other nations of the world, it is quite astronomical thanks to the Crypto ban. For instance, in South Africa, which has the second highest premium placed on BTC in the world, the premium is just 3%.
Despite crypto ban Bitcoin market still firm in Nigeria
Cointelegraph’s analysis shows that the Nigerian Crypto market remains booming despite the crypto ban in place. As one of the most engaged crypto markets in the world, nothing seems to deter the traders from investing in BTC. In fact, it almost seems that the ban strengthened their resolve to keep trading.