Nigeria continues to be interested in Bitcoin and cryptocurrencies despite the central bank declaring them as not legal tender.
Nigeria
is one of the most interesting locations for cryptocurrencies. On the
one hand, the Central Bank of Nigeria (CBN), as well as the Nigerian
Senate, have said that cryptocurrencies are not legal tender in the
country. Only the local fiat currency, the naira, remains the legal
tender for Nigeria due to no crypto regulations and the aforementioned
requests for citizens to avoid crypto altogether. On the other hand,
Nigeria is home to Luno, the biggest crypto exchange in Africa also
offering a renowned online bitcoin wallet.
The
CBN has even instructed banks to be cautious with customers who may be
using cryptocurrencies. Banks in Nigeria are not allowed to offer
cryptocurrency services, somewhat like the stance taken in Kenya.
There are even more similarities as the crackdown by Kenyan authorities
on cryptocurrency resulted in an increased interest within the general
population – just like it has done in Nigeria.
Crypto Interest Remains High Following Crackdown
Over
the last decade, different countries have come out on top of the league
table of the most crypto-related Google searches. Most of the countries
topping the list are from Europe, but over the recent years, that
accolade has been handed to African countries.
Nigeria
and South Africa are now home to the most google searches relating toc
cryptocurrency. Although there was a slight dip in searches post the
comments made by the CBN and Senate, search hits remained high. This
shows that Nigerians are still interested in cryptocurrency and their
persistence in owning crypto will not be deterred by lacking acceptance
among the banks.
Nigeria is also experiencing high rates of inflation
just above 18% and cryptocurrency could provide shelter from the storm.
This has been the case in other African nations where citizens protect
their wealth by investing in bitcoin.
But, What if Nigeria Banned Cryptocurrency?
There
is also the chance that Nigeria will follow other counties and banning
cryptocurrency altogether. It may be presumed that banning crypto in
Nigeria would lead to reduced interest and use of it, but history
suggests otherwise.
Cryptocurrencies
were also banned in Bolivia and Bangladesh to stop citizens from using
it. However, the plan backfired as it only increased interest in crypto
and its opportunities that they were being denied. In the end, interest
in cryptocurrencies skyrocketed as a result of the ban.
Crypto Has a Lot to Offer Africa
Warding
away crypto and banning it in African nations is a shame considering
the benefits crypto can offer Africans. If governments and central banks
were to regulate its use and embrace it rather than backlist it, there
is potential for crypto to aid unbanked populations and help businesses.