Bitcoin may be a decentralized cryptocurrency, but that does not mean that its price is the same worldwide. It is normal to have variations between countries, but in the past two months Nigeria has traded digital assets for more than $ 80,000, almost double the world average.
Flag of Nigeria
According to data from the Bitcoin Price Map, a platform that aggregates crypto prices around the world, Nigeria is the country where the currency is more expensive. This happens after the local government, banning cryptocurrencies, causing the population to return to the parallel and inflated market of digital assets.
Prices have risen exponentially according to the difficulties that exist in the country to trade bitcoin today. Exchanges, exchanges and payment platforms operating in Nigeria cannot trade crypto in any way.
Although they are uncertain how a publication developed to circumvent prohibitions, a parallel and illegal market stops in the country. Bitcoin was traded at more than $ 80,000, a record price worldwide, below I leave an illustrative image on the prices of btc in some regions of the world in the last two months.
Other countries experience similar effects
These effects also happen in countries like Malaysia, Argentina and South Africa, where, for whatever reasons, bitcoin's supply and demand is affected. For example, Argentina is facing an economic economic crisis and the population has suffered restrictions on the purchase of dollars so that national reserves are not depleted according to high information and the dollarization of trade.
As a result, bitcoin and other cryptocurrencies are sold through Argentine exchanges at prices higher than the global average in the face of increased demand. More and more crypto are being seen as viable options for reserving value that people around the world can access to protect themselves from unstable fiat currencies and information.
The situation of crypto currencies in Nigeria
On February 5, 2021, the Central Bank of Nigeria (CBN) released a letter addressed to banks and other financial institutions forbidding or any type of transactions involving cryptocurrencies. The authorities also forced the closing of accounts of legal entities and individuals who held digital currencies.
Not surprisingly, the letter generated great concern in the market, especially in the area of startups and fintechs. After much criticism, CBN issued yet another statement stating the reasons behind its decision.
The Central Bank of Nigeria explained that cryptocurrencies are issued by "unregulated and licensed entities" to operate in the country. The government then identified an illegal financial resource in digital currencies.
Another point raised is the controversial issue of “anonymity” that cryptocurrencies would give to their users, making them susceptible to illegal activities, such as money laundering and financing of criminal groups. Finally, CBN stated that digital assets are very volatile and that they would pose risks to the national financial structure.
The reasons parallel to the decision
The adoption of cryptoactives by the Nigerian population has appeared in recent years. In the face of information, unstable currency and the people's desire for internationalization, bitcoin and other digital are seen as a way of economic freedom. However, the control that governments seek over the national economy weakens in the face of widespread adoption of digital assets.
Throughout 2020, a wave of protests hit Nigeria and bitcoin played a very important role in funding the organizers. Many local and international donations made through cryptocurrencies to Protestant groups, until the Nigerian government closed the bank accounts linked to the associations.
At the time, cryptocurrencies were what kept the protests alive through crowdfunding. Until the beginning of February this year, the Central Bank of Nigeria adopted one of the toughest restrictions on the use of cryptocurrencies ever recovered worldwide.
Instant payment system
As previously explained the marketing of crypto currency in Nigeria is prohibited by law however, have as snapshots oagamento feature several alteenativas one is the digital wallet Skrill belongs to the group paysafecard this portfolio allows acquire as coins crypto in several brokerages without attracting attention from the government. Below I leave the image of Skrill for those who do not know:
Naira
Naira (sign: ₦; code: NGN) is a currency of Nigeria. It is subdivided into 100 kobo.
The reason for the more expensive bitcoin is that information in Nigeria has gotten out of hand, considerably at an accelerated rate.
The Nigerian currency, the Naira (NGN), is worth just over $ 0.002 today, even a senator from the country admits that the national currency is practically worthless or worthless.
Nigerians, therefore, simply do not want to exchange their bitcoins for Naira, which in addition to being considered now useless, may lose even more value.
Bitcoin is not illegal in Nigeria. Their possession, transaction and all activities are permitted, as there was no act of parliament to say otherwise.
Banks operating in Nigeria, however, have been ordered to close accounts by anyone or company that trades cryptocurrencies.
Whoever loses, then, is Nigeria itself, its citizens who, with bitcoin, put the country on the map. They will now show that bitcoin cannot be banned and that the country is at the mercy of a digital revolution.
A revolution that, for the first time in history, is being fought not with weapons but with code.
Federal Republic of Nigeria, is a country in West Africa. It borders Niger in the north, Chad in the northeast, Cameroon in the east and Benin in the west. Its south coast is in the Gulf of Guinea, in the Atlantic Ocean.
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References:
https://en.m.wikipedia.org/wiki/Nigerian_naira
https://en.m.wikipedia.org/wiki/Nigeria
https://tecnoblog.net/416376/bitcoin-custa-mais-de-us-87-mil-na-nigeria-apos-ser-banido-do-pais/amp/
