Nigeria and BTC, the story of a special relationship
2 min read
Nigeria is placing its hopes in BTC. This seems to be indicated by the fact that the country is the second-largest BTC market after… the United States.
This is enough to understand how the Central Bank of Nigeria’s ban on BTC trading has sparked discontent and concern in the country.
In fact, in recent days, the Central Bank of Nigeria has made a partial backtrack, claiming that it does not want to ban BTC trading, but that it wants to prevent trading from being carried out without KYC and AML procedures.
Not least because attempting to ban BTC trading has already proved a failed attempt in China. In fact, banning BTC trading on exchanges has only shifted activity to peer-to-peer platforms, as evidenced by the spikes in trading that are being recorded.
Why BTC is so popular in Nigeria
Nigerians seem to be hungry for BTC more than in other parts of the world. This is because BTC is seen as a store of value in a nation struggling with severe economic difficulties.
The Central Bank’s decision had also triggered a lot of criticism because of the historical moment in which it arrived: BTC is in fact experiencing a very particular year, where it is growing in popularity thanks to the adoption of institutional investors, leading to an increase in price.
Al Jazeera reports that if the consequences of the pandemic are added to all of this, which has caused the local currency to lose further value and caused the price of crude oil, the country’s real resource, to plummet, it is clear why BTC has become increasingly important.
After all, Nigerians are a very young population and it is the young people who are most likely to innovate and turn to BTC.
The other factor not to be forgotten is that very few people in Nigeria have access to the banking system. This is where BTC has found fertile ground, since it does not require a bank, it only requires a smartphone with an internet connection.
So it seems that all the conditions are in place for BTC to be an economic resource for the people of Nigeria.
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