Nigerians Surpassed CBN Restrictions And Traded N78bn Bitcoin In Three Months

Nigerians traded at least 77.75 billion naira ($185 million) worth of Bitcoin in the first three months of the year despite restrictions imposed by the Central Bank of Nigeria on cryptocurrency transactions in the country .

This is an increase of 5.71% from the 73.54 billion naira value of Bitcoin that was traded in the corresponding period of 2021, according to data made available to our correspondent. by Paxful, one of the country’s leading peer-to-peer cryptocurrency platforms. .

Nigeria’s trade accounted for 25.87% of the total 300.48 billion naira ($715 million) of Bitcoin traded on the platform during the quarter under review.

Advertising

Global trade on the platform showed an increase of 8.33% from the 277.377 billion naira ($660 million) traded there during the corresponding period of 2021.

According to the firm, Nigeria was its largest trading country in 2021 with 16,000 daily transactions. During the reporting period, the market capitalization of BTC fell by $36.90 billion, from $902.10 billion on January 1, 2022 to $865.20 billion on March 31, 2022.

This is despite the CBN restrictions on cryptocurrencies in the country. In February 2021, the CBN instructed banks across the country to stop transacting in and with entities dealing in crypto assets.

The bank said: “Following previous regulatory guidance on the subject, the bank hereby wishes to remind regulated institutions that trading in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”

Since the restriction, P2P trading of crypto, especially BTC, has increased. According to a 2021 report by Chainalysis, the country ranks sixth in the world in terms of crypto adoption.

A recent report from KuCoin, a crypto exchange with over 10 million registered users, revealed that around 33.4 million Nigerians trade or own crypto assets.

According to Founder and Coordinator of Blockchain Nigeria User Group, Chimezie Chuta, the P2P nature of BTC is the cause for its growing adoption in the country.

He said: “Crypto is designed to be P2P and the only way we started talking about bank accounts is to facilitate offloads or what we call unwrap.

“If people are confident or comfortable with simple crypto-to-crypto exchange in the P2P environment, there is no stopping it. And that’s what happened after the CBN banned crypto and most exchanges went P2P. P2P is person to person, there is nothing that can happen to that.

“So what happens is you send people funds to their local accounts when you trade whatever you need to trade on the digital platform. It’s expected because it’s decentralized and disruptive enough to allow such things to happen.

Chuta added that the recent price decline in BTC and the crypto market created an opportunity for traders to earn profits.

Stakeholder Chairman of the Blockchain Technology Association of Nigeria and Secretary General of the Blockchain Industry Coordinating Committee of Nigeria, Senator Ihenyen, had said in an earlier interview with our correspondent that it was time for the CBN to rethink its stance on the cryptography.

He had said, “Yes, I strongly believe it is time for the CBN to rethink its stance on crypto in Nigeria. There is no doubt that the CBN must have had compelling reasons to shut down cryptocurrency in the country’s banking and financial system in February 2021.

“But 15 months later, all stakeholders, including the CBN, must have benefited from uncovering the real facts and figures of cryptocurrency adoption as well as the risks and opportunities. Today, we know that less than 1% of cryptocurrency transactions are related to illicit transactions.

“Today, we know that our law enforcement agencies need more transparency to aid their investigations, not the monetary blackout in space. Today we know that crypto exchanges such as Binance, Luno, Bundle and others are the centralized gateway to the crypto world that should be welcomed as allied partners of CBN and other regulators.

He added that the nation is safer with regulated rather than resisted cryptocurrencies, as innovators believe it is the future of finance.

Copyright PUNCH.

All rights reserved. This material and any other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without the prior express written permission of PUNCH.

Contact: [email protected]

We would love to thank the writer of this article for this outstanding web content

Nigerians Surpassed CBN Restrictions And Traded N78bn Bitcoin In Three Months


We have our social media pages here and other pages on related topics here.https://metfabtech.com/related-pages/