Despite the Central Bank of Nigeria’s ban on cryptocurrency-related financial activities, a crypto platform analysis estimates that 33.4 million Nigerians trade or hold crypto assets.
KuCoin, a crypto exchange with over 10 million registered users, said in its research, ‘Into The Cryptoverse: Decoding The World Of Crypto Consumers,’ that the crypto populace is predominantly controlled by 18 to 60-year-olds.
“According to Google Trends, Nigeria had the largest number of bitcoin searches worldwide in early 2021, showing the expanding usage of cryptocurrencies in the country,” it stated.
“According to the data, the country’s youth have been the driving force behind the rise in bitcoin searches. According to a survey we did in early 2022, 33.4 million Nigerians, or 35% of the population aged 18 to 60, possess or have traded cryptocurrencies in the previous six months.
“70% of these crypto investors said they will likely expand their cryptocurrency assets in the near future.” Another 6% of the country’s population is interested in investing in cryptocurrencies in the next six months, indicating that the adoption rate of cryptocurrency may continue to rise.”
The depreciation of the naira over the last six years, according to the crypto exchange, has fueled a growth in the number of crypto users in Nigeria.
“The Nigerian currency, the Naira, has fallen by more than 209% in the last six years,” it continued. Early on, some Nigerians recognized the financial potential of Bitcoin.
“Our poll found that 37% of crypto investors in the country started trading cryptocurrency more than three years ago. At the same time, 6% of the population has been trading cryptocurrencies for more than six years.
“Meanwhile, as prices climb, with food inflation at its highest level since 2008, Nigeria’s difficult economic situation persists and has been exacerbated by COVID-19, making cryptocurrencies appealing alternative sources of income, particularly in the bullish market of 2021.” According to the report, 26% of cryptocurrency investors have started trading in the last six months.”
From January 2021 to January 2022, the average number of monthly transactions across African countries increased by 1,386.7%, according to the corporation.
In the same time period, the number of users climbed by 2,467.2%, according to the report.
The cryptocurrency market in Nigeria and other African countries expanded by 1200 percent in 2021, according to a report by Chainalysis, a blockchain data platform.
Nigeria is the sixth most popular cryptocurrency adopter in the world, according to the business, thanks to its peer-to-peer monetary systems.
The African region, which is dominated by Kenya, Nigeria, South Africa, and Tanzania, has one of the greatest grassroots adoptions of cryptocurrency in the world, according to the survey. Africa is the world’s third-fastest-growing bitcoin economy, according to the report.
The International Monetary Fund recently stated that emerging nations and developing economies are driving the uptake of crypto assets. In 2021, countries in this area increased their trade volumes on cryptocurrency exchanges, according to the report.
The CBN imposed a ban on cryptocurrency transactions in the country in February 2021. “Further to past regulatory directions on the matter, the bank wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is forbidden,” it had stated.
The CBN has fined three Deposit Money Banks N800 million for breaking restrictions prohibiting consumers from engaging in cryptocurrency.