Despite CBN Ban, 33.4 Million Nigerians Trade Crypto – Report

Despite the Central Bank of Nigeria’s restriction on crypto currencies-related transactions in the banking sector, a report by a crypto platform has said about 33.4 million Nigerians trade or own crypto assets.

In its report, ‘Into The Cryptoverse: Decoding The World Of Crypto Consumers,’ KuCoin, a crypto exchange with over 10 million registered users, said the crypto population is largely dominated by 18 to 60-year-olds.

It said, “According to Google Trends, Nigeria was recorded as the country with the highest number of bitcoin searches globally in early 2021, signaling the growing utility of crypto currency in the country.

“The data also pointed out that the country’s youth have been the decisive force behind the surge in bitcoin searches.

According to our survey conducted in early 2022, 33.4 million Nigerians, which accounts for 35 per cent of the population aged 18 to 60, currently own or have traded crypto currencies over the past six months.

“70 per cent of these crypto investors claim that they will likely increase their crypto currency assets soon.

Another six per cent of the country’s population are interested in investing in crypto currency in the coming 6 months, suggesting that the crypto currency adoption rate might continue to increase.”

According to the crypto exchange, the depreciation of the Naira over the last six years has fueled the increase in the number of crypto users in the nation.

It added, “The Nigerian currency, Naira, has depreciated by more than 209 per cent in the past six years. Some Nigerians recognised the financial opportunity brought by Bitcoin early on.

“According to our survey, 37 per cent of crypto investors in the country began trading crypto currencies more than three years ago.

At the same time, 6 per cent started trading crypto currencies more than six years ago.

“Meanwhile, as prices continue to rise, with food inflation reaching its highest point since 2008, the challenging economic climate in Nigeria remains and has even worsened by COVID-19, making crypto currencies attractive alternative sources of income, particularly in the bullish market in 2021.

According to the survey, 26 per cent of crypto investors have begun trading crypto currencies in the last 6 months.”

The firm said the average number of monthly transactions across African countries showed a 1,386.7 per cent from January 2021 to January 2022.

It added the number of users also increased by 2,467.2 per cent within the same time period.

According to a report by Chainalysis, a blockchain data platform, the crypto currency market in Nigeria and other African countries grew by 1200 per cent in 2021.

The firm added that Nigeria is the sixth leading country in the world in terms of crypto currency adoption as a result of its peer-to-peer monetary systems.

The report said the African region, dominated by Kenya, Nigeria, South Africa, and Tanzania, has one of the highest grassroots adoptions of crypto in the world. It added that Africa has the third-fastest growing crypto currency economy in the world.

The International Monetary Fund recently said the adoption of crypto assets was being driven by emerging markets and developing economies.

It added that countries in this region increased their trading volumes in crypto exchanges in 2021.

In February of 2021, the CBN put a restriction on crypto currency transactions in the nation.

It had said, “Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing with crypto currencies or facilitating payments for crypto currency exchanges is prohibited.”

Recently, the CBN fined three Deposit Money Banks N800m fine for violating its regulations barring customers from transacting in crypto currencies.

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