Rescue from the Nigeria Govt. Crypto Ban: Peer- to-Peer (P2P)

The recent ban by the Central Bank of Nigeria (CBN) has, however, not discouraged cryptocurrency enthusiasts in the country as they have found a way to conduct peer-to-peer transactions.

In Nigeria, there is no law that prohibits individuals from participating in cryptocurrency transactions and trading. This has also attracted investors and speculators that are concerned about being regulated by both the Securities and Exchange Commission (SEC) and the Nigerian Bureau of Statistics (NBS).

The country's apex bank, the Central Bank of Nigeria, had early in the year prohibited all financial institutions and banks from facilitating crypto transactions and also commanded that they shut down any account that involves in this kind of trade. This has also allowed for a more varied ecosystem with multiple exchanges offering Nigerians the opportunity to trade without having to wait for their accounts to be verified.

There is a sense of security in being able to avoid using banks because of their lack of support for cryptocurrencies. Cryptocurrency trading can be seen as similar to the regular operations of some local businesses as they will only trade cash on delivery, which gives them an advantage because they can avoid having to deal with banks and other institutions.

Crypto Traders Are Using P2P For Transactions - With the recent ICO ban on the central bank of Nigeria, some people have taken a different route to invest in cryptocurrency. These people are finding it difficult to make their investment on the centralized exchanges. This is a way around the Central Bank of Nigeria (CBN) as they have recently announced a ban on internet and mobile money payment platforms that support cryptocurrency transactions.

The rise of peer-to-peer exchanges has been on the rise lately in Nigeria. P2P exchanges allow you to buy Bitcoin or other cryptocurrencies without going through a centralized exchange. This means you can trade directly with another person rather than using an intermediary like Local Bitcoins or Paxful in which you deal with a person on a platform. In a p2p trade, both buyer and seller connect through an online chat where they negotiate and agree on a price for the trade.

There is a proliferation of peer to peer (P2P) transfer system in the country and this is where people who have bitcoin buy and sell their coins without the use of any banking system. The exchanges are advertised on Facebook, offering exchange of Naira for BTC. People who want to buy bitcoin usually get an agent to buy them from and pay via mobile money or bank transfer, the agent sends the coins to exchange their Naira and withdraws cash for them. The same process is carried out when someone wants to sell their bitcoin.

Therefore, people have found a new innovative way trade their coins without using centralized exchanges. P2P transactions are transactions between 2 people where one purchase from another. This can be done through financing, credit, and other forms of lending. And it's so common in Africa. Peer-to-peer (P2P) is an exchange of goods, services and payments between two parties in a highly decentralized manner, where the parties involved in the transaction interact directly (i.e. via a personal computer) and a middleman or intermediary is not necessary.

The recent government ban on the purchase of Bitcoins with a credit card has made it very difficult for an individual to liquidate their cryptocurrency holdings into fiat. The ban has also prevented all financial institutions and banks from facilitating any crypto transaction and also commanded that they shut down any account that involves in this kind of trade. This ban has somehow limited the operations of traditional/centralized exchanges which are one of the most common ways people buy BTC in Nigeria.

This situation has prompted some payment processing firms to help their customers bypass the government's restriction by allowing them to pay via mobile money or other means acceptable to both parties. The use of peer-to-peer (P2P) lending in the trade of cryptocurrencies such as Bitcoin is gradually becoming more popular in Nigeria. This development is as a result of the recent decision by banks to stop transactions involving crypto, making it difficult for people to pay for them using their bank accounts.