The adoption of cryptocurrency globally is no longer a myth, as many Africans largely use digital currencies like Ethereum, Ripple, Bitcoin, and Litecoin for applications in banking, investments, and making payments. These crypto users range from small businesses, financial tech-based startups, and retail consumers.
However, so many things have triggered the surge in the usage of cryptocurrencies in the continent, but unreliable local currencies could be a distinct factor amongst others.
Irrespective of that, the general interest in cryptocurrencies, especially Bitcoin, has brought Nigeria to the limelight in the adoption of digital currencies.
Nigeria and cryptocurrency usage
Nigeria is Africa’s largest economy and also the home of over 200 million people. It has been the most popular source of Bitcoin trading volume in the continent. Interestingly, the country has a good number of local platforms supporting the sales of cryptos and pioneering the adoption of blockchain technology. One notable platform is Nairaex, which is the leading local cryptocurrency exchange supporting several payment methods for buying and selling Bitcoin.
Moreover, a growing number of Nigerian companies already accept payments in cryptocurrency. According to a recent report released by Blockchain.com, Nigeria is one of the fastest-growing crypto markets globally. The report disclosed that the highest flow of activity in blockchain.com’s wallet app since April 2020 has been from Nigeria. In Q2, 2020, statistics obtained from UsefulTulips, a Bitcoin analytic data provider, also showed Nigeria as the leading country.
Top countries in Q2 2020 leading in peer-to-peer Bitcoin transactional trades in Africa:
- Nigeria – $34.4 million
- South Africa – $15.2 million
- Kenya – $7.8 million
- Ghana – $640,000
- Tanzania – $600,000
In conclusion, the financial market chaos triggered by COVID-19 has “miraculously” changed the way many Nigerians perceive the financial system. Also, data obtained from the Google trend shows Nigeria as the leading country in Bitcoin searches. This is to affirm the fact that Nigerians are beginning to see the light in blockchain technology.