While looking at some statistics about cryptos in Nigeria, it’s hard to believe it’s actually banned. Officially, the government ordered a banking ban last February. According to the law, everyone exchanging cryptos would have their account immediately suspended. Crypto users don’t seem to have felt the blow. Stay with us to check the current situation for crypto users in the country.
Grace Under Pressure
Data from Nasdaq points that the number and volume of bitcoin transactions have been rising since last year. In May alone, the country received over 2 billion dollars worth of bitcoins. Meanwhile, several online sports betting platforms are made available to the ‘crypto public.
In fact, more football betting companies are jumping into the crypto wagon. It’s happening partially because of the record rise in the gambling market since last year. The growing trend in online gambling is likely to continue in the following years, reaching $93 billion in 2023.
The government ban hasn’t worked as intended so far. Someone can even argue it has the opposite effect. If anything, it resulted in a sharp increase in peer-to-peer transactions. After all, Nigeria is still the second country in bitcoin trading volume, second only to the United States.
So, now thanks to the ban, operations with cryptos must go entirely under the banking radar. It definitely isn’t a problem for cryptos’ tech-savvy users. However, it defeats the purpose of regulation and leaves the government clueless.
Common Symptoms
Countries registering a steep increase in cryptocurrency usage share something in common. Turkey, El Salvador, and Nigeria have unstable economies. Rampant inflation and erratic moves from the government leave people exposed to a weak currency.
A faulty banking system is also usually to blame. For instance, in El Salvador, only about 30% of the population has access to the banking system. The situation looks a bit better in Nigeria, but about 40% of the adult population still lack access to banks.
A survey from last year showed that 32% of Nigerian adults used bitcoins. No other country reaches such a mark. In terms of trading volumes, the country ranks third, behind the United States and Russia.
Nigeria is experiencing yet another recession. The Central Bank sent the national currency, naira, on a nosedive of 24% last year. Amid fears, naira could dive even deeper; cryptos look surprisingly more stable.
Crypto-Influencers
More people are starting to invest in cryptos, inspired by success stories. A trend that started in 2014 is becoming viral now, pushed by a generation of crypto influencers. Last year the country premiered the first ATM that operates with cryptocurrencies.
Wallets in the Clouds
Crypto users need e-wallets to make their transactions. Not every e-wallet works with the likes of bitcoins, though. Here are some of the best crypto-wallets available to the Nigerian public.
Exodus
Exodus is a multi-currency wallet, which means it doesn’t deal only with cryptocurrencies. In fact, it works with over a hundred currencies and also one million different cryptos. It’s a free platform, available for desktop and mobile. Besides, it charges no fees for transactions.
Atomic Cryptocurrency Wallet
Atomic Cryptocurrency is perfect for those who are just beginning in the crypto-world. It’s a very intuitive platform that deals with over 300 cryptocurrencies. It obviously includes the most popular ones, like Bitcoin, Ethereum, and Litecoin. The platform is optimized for mobile devices and also runs on Mac, Windows, and Linux. The app is free, but there may be charges for certain operations.
Coinomi
Coinomi offers a trustworthy security system. It also allows users to buy cryptos straight from the platform. It deals with about 1,800 cryptocurrencies. It means users can store all their cryptos in only one place. Coinomi counts on SegWit support, which makes transactions and confirmations even faster.
Conclusion
The government ban didn’t kill the market, but it’s created a lot of trouble for some account holders. Some people reported sudden suspension of bank accounts under suspicions of crypto-trading. Anyway, it’s common sense that this market will continue to grow. Cryptos will keep attracting more users as long as it remains regulation-resistant and a safer option than local fiat money.
