The future of cryptocurrency in Nigeria looks bright, as the country has one of the highest adoption rates of digital currencies in Africa. Despite regulatory uncertainties and government crackdowns, cryptocurrency has continued to thrive in the country, with more people recognizing the potential benefits of using digital assets for financial transactions. Nigeria has made significant strides in the adoption of cryptocurrency. The country has been one of the fastest-growing markets for cryptocurrency in Africa, with a thriving ecosystem of traders, exchanges, and developers.
According to a report by Chainalysis, Nigeria ranks eighth in the world for cryptocurrency adoption, with a total cryptocurrency value transferred of $400 million in June 2020 alone. This is due in part to the country’s large and growing population of tech-savvy young people, who are eager to embrace new technologies and opportunities for financial inclusion.
Contributing Factors To Cryptocurrency Growth In Nigeria
One major factor driving the future of cryptocurrency in Nigeria is the country’s large and growing population, which provides a huge market for cryptocurrencies. With over 200 million people, Nigeria is Africa’s most populous country, and as more people become aware of the potential of cryptocurrencies, adoption is expected to increase.
Another factor contributing to the growth of cryptocurrency in Nigeria is the increasing use of mobile phones and internet access. With over 126 million active internet users and over 198 million mobile phone subscribers, Nigerians are embracing technology and are more likely to use digital assets for financial transactions. Nigeria also has a vibrant peer-to-peer (P2P) cryptocurrency trading scene, with platforms such as Bundle, Paxful, and Binance P2P serving as popular avenues for buying and selling cryptocurrencies. These P2P platforms enable Nigerians to bypass traditional banking systems, which have been plagued by high fees, long wait times, and other challenges.
Furthermore, the high cost of traditional banking services and limited access to financial services in Nigeria make cryptocurrencies an attractive alternative. Cryptocurrencies conduct fast, low-cost, and borderless transactions, making them an ideal solution for the unbanked and underbanked population. In addition, several Nigerian startups are developing innovative blockchain-based solutions for a range of industries, from agriculture to logistics to financial services. For example, startups like Bitmama, Quidax, and DartAfrica are using blockchain technology to facilitate cross-border payments and remittances, which can be faster, cheaper, and more secure than traditional methods.
Milestones In Nigeria’s Cryptocurrency Industry
There have been several significant milestones for cryptocurrency in Nigeria over the past decade. Here are some of the most notable ones:
2014 – First Bitcoin Conference in Nigeria: The first-ever Bitcoin conference in Nigeria was held in Lagos, which brought together industry leaders, entrepreneurs, and enthusiasts to discuss the future of cryptocurrency.
2015 – Bitcoin Regulation: The Central Bank of Nigeria (CBN) released a circular warning financial institutions against the use of virtual currencies, citing their lack of regulation and the potential for use in illegal activities.
2017 – Luno Launches in Nigeria: Luno, a cryptocurrency exchange, launched in Nigeria, making it easier for Nigerians to buy, sell and store Bitcoin.
2017 – Blockchain Nigeria User Group: The Blockchain Nigeria User Group (BNUG) was formed, with the aim of educating the public on the benefits of blockchain technology and cryptocurrencies.
2018 – Cryptocurrency Market Boom: Nigeria experienced a significant boom in the cryptocurrency market, with an increase in the number of cryptocurrency exchanges, trading volume, and adoption.
2019 – Nigerian Securities and Exchange Commission (SEC) Regulation: The Nigerian SEC released a statement on the regulation of cryptocurrency in Nigeria, stating that digital assets are securities, subject to the SEC’s regulation.
2020 – Bitcoin Hits All-time High in Nigeria: Bitcoin reached an all-time high in Nigeria, with many Nigerians turning to cryptocurrency as a hedge against inflation and the devaluation of the Naira.
These milestones demonstrate the growing interest and adoption of cryptocurrency in Nigeria. However, there are also challenges facing the future of cryptocurrency in Nigeria. The government’s regulatory stance on cryptocurrencies is still being determined, with the Central Bank of Nigeria banning banks from facilitating cryptocurrency transactions in February 2021. This move caused some panic and uncertainty in the crypto community, but it has not stopped people from using digital assets.
Another challenge is the prevalence of fraudulent schemes and scams in the Nigerian crypto space, which can lead to distrust among investors and limit adoption. However, the government and industry players have made efforts to address these issues and promote a safer and more regulated crypto industry in the country.
How To Exchange Cryptocurrency for Naira on DartAfrica
DartAfrica is a very new and quickly expanding cryptocurrency trading platform that aims to make it pleasant and easy for users in Ghana and Nigeria (for the time being) to sell cryptocurrencies for fiat. DartAfrica offers support for popular cryptocurrencies like USDT, USDC, ETH, and BTC and has plans to increase this selection in order to cater to a wide range of consumers with various preferences.
One of the many potential benefits of using DartAfrica is the fact that there are no transaction fees, unlike other exchange platforms or traditional banking institutions.
The platform also provides simple navigation, quick and secure transactions, and a user-friendly design. To efficiently use DartAfrica:
- Visit their website to register in just a few simple steps.
- Create a transaction pin by logging into your account and selecting “Security” to authorize withdrawals.
- For instructions on creating a local bank account, click “Account Details”.
- Choose the coin you want to deposit by clicking “Sell Coins.” Put the USD amount (at least $20).
- By selecting “Sell Now,” you will be given a barcode and wallet address to deposit the equivalent amount you intend to sell. After two block confirmations, the corresponding amount of fiat is transferred into your account. You may track your transaction in the “Trades” area until the deposit is complete. You can see this on your “Dashboard.”
- To withdraw money to the account you’ve previously set up in step 3, click “Withdraw funds,” then enter the desired amount. Without any additional fees, your local bank receives a quick credit.
Overall, the future of cryptocurrency in Nigeria is promising, as more people recognize the potential benefits of using digital assets for financial transactions. With a large and tech-savvy population, Nigeria is well-positioned to be a leader in the crypto space in Africa. However, it is important for the government to provide a clear regulatory framework and for industry players to address fraud and scams to ensure the industry’s sustainable growth. With the right policies and infrastructure in place, Nigeria has the potential to become a leading player in the global cryptocurrency market.
