Crypto is very popular in the Netherlands: more than one in ten people own cryptocurrencies in some form. That may sound relatively high, but in some other countries it is much more extreme. In Africa, crypto is so important that it has actually become a commonplace phenomenon. Until recently there was a ban in Nigeria, but no longer. The continent’s largest stock exchange is now expecting a price explosion.
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Crypto is popular in Nigeria due to inflation
Nigeria is currently struggling with massive inflation. According to TradingEconomics, the annual inflation rate was 28.2 percent in November. There are few countries where this percentage is so high. Partly for this reason, crypto has even become a savior. Many residents are not wealthy enough to have a bank account, which is why blockchain offers a solution.
This allows people to protect themselves from the enormous loss in value of the Nigerian Naira (NGN). In addition, corruption is a big problem. There is not much trust in the banking system and crypto has the additional advantage that you can play the bank yourself.
Nevertheless, the Nigerian government was not at all happy with the existence of cryptocurrencies. In 2021 Central Bank of Nigeria (CBN) Cryptocurrency trading is completely banned. This made investing in crypto only possible if you knew someone abroad. Nevertheless, the government wanted to legalize digital assets at the end of last year, and this measure came into effect just before Christmas last year.
Bitcoin price explosion in Nigeria?
A popular service in Nigeria is Yellow Card – this crypto exchange is actually the largest in Africa. In an interview with Cointelegraph, Yellow Card’s general counsel Lasbery Oludimu said she expects good times for the industry after the ban is lifted:
(Repealing the ban) is a step in the right direction. Encouraging innovation and providing a good business environment for legitimate (crypto companies) like Yellow Card are important for promoting cryptocurrencies.
Like more and more other countries, Nigeria now has clear regulations for the crypto industry. Since December 22nd, it has been possible for crypto businesses to open a bank account with traditional Nigerian banks. Previously, they were not allowed to open accounts, which is why it was so complicated to buy crypto in the country.
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