CoinGecko has released its latest research, showing Nigeria as one of the most crypto-curious countries. The study, which analyzed six queries and combined the search ratings for English-speaking countries, found that Nigerians are the most interested in digital assets. While the decline in the price of bitcoin in April and May was disappointing, Nigeria is still the top country for cryptocurrency interest. A CoinGecko researcher said that Nigerians have been buying cryptocurrency on dips and have largely entered the digital asset world for the long term.
In Nigeria, remittances, which are a vital source of non-interest income for the country’s largest lender, have increased significantly in recent years, but this has not affected the bank’s revenue from cryptocurrency trading platforms. Nigeria’s macroeconomic climate and lack of financial inclusion are driving the popularity of cryptocurrencies in the country. For example, the central bank of Nigeria devalued the naira by more than two-thirds last year and fears that the value of the currency will fall another 10% in 2019. Meanwhile, food inflation has reached the highest level since July 2008.
Binance is a global exchange that supports over 600 different digital currencies. In addition to offering a wide selection of crypto currencies, it doubles as a peer-to-peer marketplace. Its app allows Nigerians to deposit NGN directly into their accounts and offers a peer-to-peer marketplace similar to Paxful. And in Nigeria, Luno is the most popular cryptocurrency exchange.
The CBN launched the eNaira website in September 2014. To use eNaira, Nigerians need to download a mobile app or scan the QR code on the website. Once downloaded, they need to create a Speed Wallet (which is a digital wallet). They can create as many types of eNaira wallets as they wish, including a bank account.
While some people are concerned that these new digital currencies are risky, Mr Ugwu sees them as a useful tool for financial inclusion. His wife, Onyeka Ugwu, also invested in Bitcoin after she saw high commission charges on traditional financial services. The value of bitcoin has soared to a record high and is a speculative bet. A large percentage of the adult population of sub-Saharan Africa is illiterate, making it difficult to use bank accounts to invest in cryptocurrency.
Another popular cryptocurrency in Nigeria is Luno, which is not just an exchange but also a wallet for Bitcoin and Ethereum. Like Coinbase, Luno is a fiat-to-crypto currency exchange company. It is available in Nigeria, South Africa, Malaysia, Singapore, and 35 European countries. It is currently the largest cryptocurrency exchange in the country, and also has a built-in wallet system for Bitcoin and Ethereum.
Although the Nigerian Central Bank recently declared a crackdown on cryptocurrencies, this has not deterred Nigerians from buying and selling cryptocurrencies. Nigeria Luno, Paxful, and Remitano are a few of the popular crypto exchanges in Nigeria. The biggest disadvantage is that they are unregulated and do not support centralized exchanges. However, they are a good option for those seeking to make purchases.
