CRYPTO IN AFRICA
A huge percentage of people have come across the term " cryptocurrency" in one way or the other.
A cryptocurrency is a digital currency that can be used to buy goods or services but uses an online ledger with strong cryptography to secure online transactions.
According to coinmarketcap, a market research website, there are more than 13,000 different cryptocurrencies that are publicly traded.
In this article, we have pointed out some key events happening in the crypto space, using Africa as a case study.
In this world of booming digital currencies, its adoption has increased over the years, and it even grows wider day after day. A lot is happening and Africa as a continent is not left out in this notable growth. Africa is said to be the second most populated continent in the world, with a count of about 1.3 billion people. And in the entirety of Africa, Nigeria is the most populous country. Nigeria ranks highest according to Bitcoin.com as the country with the most trading activities with a 23% mark, followed by Vietnam which is 21%. Not even America as opposed to popular belief.
The adoption of digital currencies in Nigeria keeps increasing daily despite the ambiguous legal status of digital assets in the country.
THE BAN OF CRYPTOCURRENCIES IN NIGERIA
Over the years, there were no laws against crypto in Nigeria, up to early this year when the Central Bank of Nigeria released a memo placing all crypto-related activities on a ban. While this was perceived by many to be the beginning of the end of crypto in Nigeria, the situation however took another turn as crypto continues to bloom and flourish in the country. The ban has had little to no effect on cryptocurrency usage in the country as many have adjusted to the current situation. Crypto users have found new ways to buy and sell cryptocurrencies in Nigeria.
This ban officially happened on the 5th of February, 2021, where the Central Bank of Nigeria made a ruling that ordered all financial institutions to close the accounts of individuals or entities engaging in all crypto-related transactions. This letter that was sent by the CBN(Central Bank of Nigeria) even created mass adoption as a rule of psychology; people do not want to be instructed on how to use their money and how not to. Nigerians have now grown to adapt to a lot of ways to help them continue the crypto life and at the same time, stay far from the Nigerian government.
Still, in the bid to frustrate traders in Africa, Cointelegraph reported that Nigerian banks were ordered to track personal account information with large multi-day inflow and outflow and that the Nigerian Police Force will also work around the country to arrest citizens with crypto-related apps on their mobile devices.
The Nigerian government believes that crypto has been a tool to facilitate lots of illegal deals due to its anonymous nature and the directive is to protect the Nigerian financial sector from cybercriminals. While this is considered a good reason, it has shut a lot of doors of opportunities for crypto enthusiasts in the country. It has directly or indirectly affected many. Although, as I said earlier, Nigerians have found a lot of ways to thrive in the crypto space despite the ban. Let's look at some:
P2P Transaction
The acronym P2P stands for peer to peer and this feature in crypto trading is like a God sent for Nigerians. With this feature, you no longer make purchases of cryptocurrencies straight from your bank account to an exchange ( centralized or decentralized ) without being flagged. In this case, you only need to look through the list of local vendors on exchanges like Remitano, Binance, and Paxful.com which supports P2P transactions and to proceed to make the selection of a preferred vendor, based on his rate and the reviews he/she has gotten.
You then send money directly to his bank account having the exchange as the third party to ensure safety. Then he sends crypto directly to your digital wallet. And vice versa.
Another new way is the new development by Luno exchange to help Nigerians stay on top of the game by helping them deposit and withdraw funds once again to and from the Luno platform using vouchers purchased and redeemed through a third-party provider.
Crypto is becoming more fascinating and at the same time more lucrative with a smorgasbord of opportunities being fired out every minute. The crypto space has made a lot of millionaires in Nigeria, Africa and the world at large. And I believe with the rush in the growth of this space,( equipped with even newer features) this is merely a scratch on the surface for many more to come.
