Nigeria continues to surpass the underdeveloped regulatory frameworks in Africa to adopt many cryptocurrency assets. Many young people in the country are interested in crypto coins because of the long-haul benefits. According to Nigerian experts, the state needs cryptocurrencies to shape the future of its economy. The digital currencies would rid it of its past hyperinflation and economic struggles.
Today, Nigeria solely depends on mining to generate more revenue, but it’s not enough. Statistics show over 40% of Nigerians living in poverty. That and many other problems have made youths less trustworthy of the country’s local currency. They believe in cryptocurrencies and their potential to shape their future and their families.
Central Bank of Nigeria and Digital Cryptocurrencies
Despite many factors pointing to the significance of cryptocurrencies, Nigeria’s government is not interested in adopting them. The Central Bank of Nigeria has clarified its opposing standing by prohibiting financial institutions from engaging with crypto entities. It probes the question, ‘Is there any chance of the CBN adopting crypto?’
The decision was hard for many young people, but they found a way to maneuver the crypto market. Investments are important because :
Educational Opportunities are Rising
The cryptocurrency-based ‘BuiltWithBitcoin’ campaign in September 2020 constructed a new school in Sanga, Nigeria. Paxful digital exchange was at the forefront to accommodate 120 children between 3 and 6 years. It also catered to all costs to provide solar power energy, a water well, teachers’ salaries, and school uniforms. The development encouraged many Nigerians to evade poverty, hence an upsurge in trading cryptocurrencies.
Increased Mobile Banking
Withdrawal restrictions in financial institutions limit Nigerians not owning bank accounts. Now, mobile phones do more than communicating and accessing the internet. People can use mobile platforms like Xend Finance to change local currency to crypto. Stablecoin, for instance, charges less fees and protects money from devaluation.
Basic Income Never Cuts It
People need supplemental income. Nigeria continues to pick up the remaining pieces after the 2016 recession. Its economy strained significantly and increased unemployment. The value of the Naira also fell, calling for a solution for stable extra income. 2020 saw the cryptocurrency transactions plummeting to $400 million, placing the country third on the list of top global traders in the volume of the books. Cryptocurrency has transformed people’s lives and saved many from depending on minimum wage menial jobs.
New Hope for Nigeria with Central Bank Digital Currencies (CBDCs)
Interestingly, Nigeria plans to follow other developed countries to work on its digital currency. The move is a shocking revelation to many after the CBN’s hard stamp to prohibit cryptocurrency transactions. Unlike crypto, CBDCs would be centralized and regulated by the Central Bank of Nigeria. They also promise faster, efficient, and cheaper transactions across global borders.
It would also secure people’s funds to change the nation’s perspective of the Naira and the rate of BTC to Naira, respectively. Hopefully, people will start trusting it to increase efficient financial inclusion. In short, it is a welcome development for Nigeria to put the government and the young generation slightly on the same page of adopting digital currencies.
