The Role Of Crypto Wallets In Nigeria’s Digital Currency Adoption; Money, as it were, till this moment, has experienced different stages of evolution, as spurred by different events and ideality for the ease of man’s daily operation. From barter to the early form of money (fiat), and to digital currencies (crypto and NFTs), the need for a form of exchange has always been a thing. However, we have seen how the Nigerian governing body has shoved a huge chunk of prohibition down the throat of its citizens, as regards the use of crypto since it exists on a decentralized structure.
A good fraction of the Nigerian populace is however resistant to this and is big on the use and trade of crypto. A pointer to this is the fact that Nigeria ranks third in worldwide Bitcoin adoption, which undeniably, has positively altered the country’s economy.
Did Crypto Wallets Play A Part In Nigeria’s Digital Currency Adoption?
Yes, the crypto wallets did play a part in Nigeria’s digital currency adoption. There has been an interesting occurrence over time. Cryptocurrencies are held and used on wallets as digital assets, the Nigerian government has thought that since the citizens are keen on it, perhaps, a digital Niara would get the same reception too. Hence, the birth of the e-naira, the official Nigerian digital currency.
Although crypto functions on a decentralized structure with no central authority, the e-naira on the other hand is the CBN’s (central bank of Nigeria) liability; it functions on the same blockchain technology, just just like Ethereum and Bitcoin. Crypto wallets influence the adoption of digital currency in Nigeria, as the e-naira copies the wallet pattern that allows it, just like crypto, to be stored in digital wallets.
But there’s more to this. There are other positive factors too as observed on crypto digital wallets that the Nigerian government aimed to achieve with the launching of its official digital currency. Take a sneak peek below.
1. Remittance facilitation
Remittance facilitation is quite easy with crypto wallets, without attracting ridiculous charges from international banking systems. The Nigerian government has also thought it wise that if the Naira can be in a digital form, it’d be relatively easier to send and receive money, thereby cutting costs. It would interest you to know that Sub-Saharan Africa, where Nigeria happens to be a pivotal remittance destination, had a remittance receipt of $24 billion in 2019.
So, the idea of the e-naira (being a digital currency), is also to slash down the cost of international transfer, such that Nigerians abroad can transfer and receive money (Naira) directly from wallet to wallet, just as is done on the crypto wallet with cryptocurrencies.
2. Financial inclusion increase
We have seen that people who own cryptocurrencies do not necessarily need to have a local bank account to facilitate transactions, as their digital assets are stored in wallets as opposed to bank accounts. One of the major aims of Nigeria’s digital currency launch, just like the crypto wallet, is so that people could have access to digital centralized currencies without necessarily needing to have a bank account, as the digital currency would be held in wallets. This, in turn, brings about an increase in financial inclusion.
It has been estimated that 36% of the Nigerian adult population (38 million people) do not own a bank account. Albeit, a good percentage of these people have access to mobile phones. This means, for the implementation of social transfer programs to come to fruition, there is a need for the creation of a pathway for more people to have access to the Naira (which has now been made in digital form) as much as possible.
About Dart Africa; Top crypto exchange platform
Here’s a short one about Dart Africa, a crypto conversion facility that helps to convert crypto to local currency for the Nigerian and Ghanaian crypto community. This platform has enjoyed an amazing number of sign-ups for its seamless experience. The number of users on every crypto facility is always decided by the users’ experiences, so it’s a statement of effectiveness and ideal functionality that Dart Africa enjoys its current adoption rate.
From the process of signing up to the process of facilitating crypto conversion, it offers a user-friendly pathway. Binance is also a good option. However, a reason that would make region-specific exchanges like Dart Africa stand out, is traceable to the fact that they are structured to meet the peculiar needs of the regions they are pegged to.
As seen on some reviews platforms, some of the contributing reasons that have made users stick to the platform are its user-first system that splits into sound customer support, easy navigation across the platform, fair conversion rate (as always displayed on the platform’s calculator), and a fast payment time.
One of the most asked questions is “is Dart Africa legit?” Well, many reviews serve as pointers. According to some users, they had to “test the waters” with smaller crypto amounts several times to gain trust, you might want to follow suit.
Cryptocurrency has indeed played a part in Nigeria’s digital currency adoption in no small way. This is seen as some of the digital naira ideas are linked to the crypto wallet. And for fact that Nigerians gave an embrace to crypto wallets and all that has to do with digital assets, contributed to a glance into the possibility of the success that the CBN’s e-naira would be.