NIGERIA ONLINE Currency devaluation in Nigeria is driving a crypto boom in the country 2 months ago Samuel Post Views: 100 Data from analytics firm Chainalysis shows that in May, Nigerians received a marked increase in crypto compared to last December. Observers say this is partly due to the central bank’s recent currency devaluation, which weakened the naira to its lowest ever level against the dollar. The resulting boom in crypto activity lends support to the idea that cryptocurrency provides a suitable fallback during times of economic strife. Crypto is booming in Nigeria According to Chainalysis, the dollar volume of crypto received by Nigerians has been rising throughout 2020 and 2021. In May, Nigeria users received $2.4 billion worth of crypto, versus $684 million in December 2020. The CEO of BiTA, a crypto education startup, Udeaja Kingsley, pointed out that the trigger for this was the recent currency devaluation. He added that it’s mainly young people, through peer-to-peer trading, who are driving this trend. “Recently, the devaluation of our local currency [encouraged] people [to start] saving in crypto assets like bitcoin and ethereum. Mostly the youths that believe in it and are trading it via the means of P2P.” Like India, Nigeria has tried to stop cryptocurrency trading by threatening sanctions against financial entities that deal with crypto companies. In effect, blocking on/off ramping. This has resulted in a resurgence of trading volume on peer-to-peer platforms, as Nigerians look to circumvent the policy. Conceding defeat, in late May, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, did a turn on the policy, saying he will now “allow” the trading of Bitcoin and other cryptocurrencies. But many think he had little choice considering the economic pressures faced by locals looking to preserve their purchasing power. Nigerians feel the pinch of economic woes The CBN elected to weaken the naira in response to mounting pressure from external lenders, U.S dollar shortages, and oil price volatility which have combined to devastate the country’s budget. Currency devaluation makes exports and currency more competitive, as they become cheaper to purchase. This can increase demand and reduce the trade deficit. But, the flip side makes imported goods more expensive and stimulates inflationary pressures. Purchasing power and domestic consumption often fall as a result. Nigeria’s inflation rate has seen a sharp rise over the last year, leading to a further squeeze on consumer budgets. Currently, it’s hovering around 18%. Keith Mali Chung, the co-founder of Loopblock Network said Bitcoin and crypto have served as an alternative to the naira during these testing times. He added that many importers have already turned to crypto to counteract the effects of devaluation and inflation. “Over 70% of all that is being consumed in Nigeria is imported, and with financial restrictions, Bitcoin is gaining all the attention it deserves.” In the past, loss of faith in a domestic currency tended to prompt locals to switch to another currency, with the U.S dollar standing out as the go-to currency. But as we’ve seen in Nigeria’s situation, now, in 2021, it’s crypto that locals are turning to. Source: cryptoslate.com SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: bitcoin, cryptocurence, Nigeria Continue Reading Previous Slotegrator evaluates the licensing in the African online gambling marketNext Twitch Slots Streaming – New Peak Viewers Record in June More Stories ONLINE UGANDA Flutterwave Strike Partnership Deal with MTN MoMo Service in Africa 1 day ago Adeleye Awakan ONLINE WORLD NEWS TVBET to enhance presence in LATAM with BetWarrior sportsbook 2 days ago Iwo Bulski ONLINE SOUTH AFRICA Yggdrasil has a franchise partner in Africa through Intelligent Gaming 2 days ago Iwo Bulski ONLINE SOUTH AFRICA How to bet online if you live in South Africa? 3 days ago Samuel ONLINE WORLD NEWS Pragmatic advances in Italy with Planetwin365 3 days ago Szarlot GAMES ONLINE Spearhead Studios Reveals Pirates Of The Mediterranean Remastered 4 days ago Iwo Bulski ONLINE SOUTH AFRICA Industries With A Big South African Presence 4 days ago Samuel CASINO ONLINE How to Play Video Poker 5 days ago Iwo Bulski HOT NEWS KENYA ONLINE Crypto gambling business gaining popularity in Kenya 5 days ago Samuel ONLINE SOUTH AFRICA Pragmatic Play set for African expansion with intelligent gaming deal 1 week ago Iwo Bulski KENYA ONLINE Are You Addicted In Sports Betting? 1 week ago Samuel HOT NEWS ONLINE SOUTH AFRICA SA Regulators has warned Binance is not authorized to provide Financial Service 1 week ago Adeleye Awakan Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed.