The rise of cryptocurrency in Nigeria is not new. In fact, Nigeria has been a purposive location for the crypto market despite the Central Bank of Nigeria’s crypto ban. Regardless, Nigerians have continued to adopt cryptocurrency at a massive scale.
How Popular Is Cryptocurrency In Nigeria?
According to the Chainalysis report in 2021, it was revealed that the crypto market in Nigeria grew by 1200 per cent in one year. In the same year (2021), it was also revealed that Nigerians traded an estimated 316.9 billion Naira ($763 million) worth of Bitcoin, with over six(6) million crypto transactions and 16,000 transactions per day on Paxful alone. The peer-to-peer crypto trading platform said that Nigeria was the number one country on its platform that year.
As of late 2021, it was reported that about 34% of the Nigerian population had traded cryptocurrency in the last 6 months. These reports place Nigeria among the top countries globally in terms of crypto transactions. The numbers are big and don’t seem to stop or reduce despite the crypto ban in Nigeria .
Cryptocurrency has not been accepted as a legal tender yet in the country and as known, the Nigerian government is very unfriendly to crypto and its transactions. However, crypto experts believe that the country has to be cautious about its take on cryptocurrency and call off the ban for the betterment of the country.
“Nigeria may one day accept cryptocurrency as a legal tender, and if so, it should be now!” Experts say.
What Does Accepting Cryptocurrency As A Payment Method Mean For Nigeria and Its Businesses?
While banks and other financial institutions are prohibited from transacting in cryptocurrencies in Nigeria, crypto has not yet been deemed illegal but it is unregulated. Due to a serious threat to the nation’s financial system, the Central Bank of Nigeria ordered all commercial banks and lenders to cease all cryptocurrency-related transactions and operations last year. Given that over 50 million people in Nigeria use cryptocurrencies, the country’s ban on them has a significant negative impact on the country’s youth. Many cryptocurrency trading platforms in Nigeria were shut down during this time and businesses that accept cryptocurrency as payment methods were affected. Numerous bank accounts that were suspected of dealing in cryptocurrencies, as well as their funds, were also closed.
Any bank transaction that references “crypto,” “bitcoin,” “P2P,” or any other crypto-related phrases will be locked away alongside the account.
Certain countries have accepted cryptocurrency as a form of payment such as El Salvador, the Central African Republic, the United States of America, the United Kingdom, Canada and many others. This acceptance gives brands and businesses reliable, fast and safer means to trade and secure funds effectively. By accepting cryptocurrency as a payment method in Nigeria, brands and businesses in Nigeria can reduce the cost of transaction processing, protect their businesses from excessive chargebacks, expand the market and cater to consumer preferences.
How Can Businesses In Nigeria Accept Cryptocurrency As A Payment Method?
I mean, cryptocurrency is a revolutionary way of expanding the market and cryptocurrency is booming in the country. It is indeed a wise investment for business owners to adopt cryptocurrency as a payment option for their customers.
But …….