Why and How People in Nigeria are Actively using Bitcoin

News / 19.08.2020

Many countries around the world are adopting cryptocurrencies like Bitcoin and the usage of them is becoming more and more popular every day. Nigeria is one of the countries around the world that is very actively using Bitcoin and it seems so that people in the country love everything about it. 

According to the studies, one of the biggest economies of the region, Nigeria, is standing to be leader when it comes to Crypto usage in the region. There are many reasons why so many people are using crypto in the country, one of the biggest reasons for it being the fact that most of the people in the country simply can not trust local currency. 

In the last few decades, many African countries had problems in maintaining the price of their currencies, which led to people believing that using government-issued fiat currencies simply are not enough to keep them safe. These people use Bitcoin and other cryptocurrencies as a way to avoid the problems that they have had with currencies over the decades and it gives them the safety and security that they have been looking for such a long time.

What fields are using Bitcoin in Nigeria?

Many fields in the country are adopting crypto-usage. One of the most popular ones, however, stands to be Forex trading. Many FX brokers in Nigeria have adopted Bitcoin payments and now offer their users to make payments in a matter of just a few minutes. 

In general, Forex trading is a very popular field all over the world because it offers investors the ability to trade without even having to leave the comfort of their own homes. Nigeria is working very hard to develop this market, and with the adoption of Bitcoin, it is creating a very secure space for local investors. 

To further popularize the market, many brokers are holding workshops and creating educational materials on how to trade Forex in Nigeria, which are very popular among local investors. There also are many internationally well-known Bitcoin FX brokers who offer their services to the citizens of Nigeria because of its role in the whole region. 

There are many other markets where Bitcoin is used in Nigeria, for example, online gambling, and many others. Even some health facilities in the county have started accepting payments in Bitcoin, there also are several hotels where you can pay using Bitcoin in Nigeria. 

How do the regulations of crypto look in the region?

Countries in Africa have adopted very different regulatory approaches to the usage of cryptocurrencies in their jurisdictions. While some countries showed a huge interest in crypto, many banned them altogether. Some countries did not take any actions regarding the cryptocurrencies at all, while some took very radical steps. 

Some countries even went as far as creating their own cryptocurrencies, such as Senegal and Tunisia. Nigeria stands out in the region by the acceptance of Bitcoin, and many are saying that it is only the beginning and Bitcoin can have an even better future in the country. 

Are there any concerns regarding Bitcoin usage in Nigeria?

Because of the risks that are associated with Bitcoin, several experts in the country have voiced their concerns regarding the massive usage of Bitcoin in the country. The central bank of the country even went as far as issuing circular to the banks and other financial organizations in the country, giving them more information about the risks that Bitcoin can have.

But, even though there are many concerns regarding crypto usage in the country, because of the past troubles that the region went through with fiat currency, people seem to prefer using Bitcoin rather than other currencies in Nigeria.

Although Nigeria has the largest economy in the region, the country still faces a lot of problems that are very hard to overcome. In 2019, Nigeria became a country with the largest number of population living in extreme poverty, which means that almost 87 million people in Nigeria are living in poverty. 

In 2019, the inflation rate in the country almost hit 12%, however, recently, there have also been some positive signs.

What does crypto mean for Nigerians?

It is true that crypto can provide an alternative to people who do not wish to use fiat currencies, but for it to be successful, modern infrastructure and technology is needed. Nigeria actually has a number of local platforms that can support purchases and sales of crypto with the national currency of the country, Naira. 

There are many well-known local crypto exchanges in the country, giving crypto-enthusiasts of Nigeria the chance to use Bitcoin very easily and access this market without much trouble.

Other than Bitcoin, Nigerians also have the ability to use many other cryptocurrencies. These other cryptos that were created after BTC are not as popular as Bitcoin, but they still are very actively used around the world.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.