The use of cryptocurrency in Nigeria is on another level. In Africa, Nigeria is the highest country when it comes to the use of cryptocurrency such as Bitcoin.
In the year to June 2021, the use of peer-to-peer cryptocurrency in Nigeria increased by 57 percent while users increase by around 87 percent.
In February 2021, the government of Nigeria, through the Central Bank barred commercial banks from engaging in any form of cryptocurrency trading/ exchange.
Even with the restrictions, the use of cryptocurrency in Nigeria has continued to balloon. In 2021, diaspora remittances in Nigeria we done more via cryptocurrency than both the Dollar and the Naira.
So, why do Nigerians prefer the use of cryptocurrency?
It is fast
According to one user, Emeka Okechukwu from Lagos, using cryptocurrency to transact is faster than any other mode. There are less restrictions as compared to other formal channels.
Since the use of cryptocurrency is somewhat “illegal” in Nigeria, the government does not charge taxes on transaction. Most Nigerians leaving abroad prefer sending cash back home in form of cryptocurrency to avoid charges and paying taxes.
Nigeria is among countries in Africa with a vibrant young population that is always using technology to discover new ways to “transact and survive.” The youth are so much in tech that the government is unable to track and catch up with them.
Truth be told, Nigerians are generally crafty. In Kenya, anyone who has been caught in fraud (be it gold or cryptocurrency scam) is either a Nigerian or associated with a Nigerian. To help cover their tracks, most prefer using cryptocurrency in their transactions.
Most Nigerians stay abroad. The majority of them have become exposed to the changing world in form of technology and have managed to influence their people back home. People back home have to adapt to a mode that will enable them receive cash from their folks abroad.