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Nigerians are entering the crypto space because of the lack of affordable financial services and high inflation rates, given that 35% of them were engaged in this sector in the last six months, according to a study by crypto exchange KuCoin.
KuCoin suggested that cryptocurrencies were filling the gap in the traditional currency-based market because Nigerians are using them as an alternative for storing and transferring assets. Per the report:
“33.4 million Nigerians, which accounts for 35% of the population aged 18 to 60, currently own cryptocurrencies or have traded cryptocurrencies over the past 6 months.”
Peer-to-peer (P2P) is a favoured strategy among Nigerians, given that 65% of crypto investors in the nation made fiat deposits to cryptocurrencies through P2P platforms. Furthermore, 52% of Nigerian crypto investors have stashed half of their assets in cryptocurrencies.
KuCoin pointed out:
“70% of Nigerian crypto investors intend to increase their cryptocurrency investments over the next 6 months, giving reasons to believe that digital asset adoption in the country is accelerating.”
The high inflation rates on Nigerian soil have made the national currency, Naira, depreciate by more than 209% in the last six years.
As a result, cryptocurrencies have been acting as alternative sources of income, especially in the bullish market of 2021, where Bitcoin (BTC) hit an all-time high (ATH) of $69,000 in November.
According to the study, women investors in Nigeria have not been left behind on the crypto bandwagon because they are at par with their men counterparts at 50%.
Nigeria has been crafting a name for itself in the crypto space, given that it became the first African nation to officially roll out a central bank digital currency (CBDC) in October last year.
Dubbed the “eNaira,” this digital currency aimed to advance the boundaries of the payments system so that financial transactions would become seamless and easier.
This CBDC would also be the only digital currency that would be legal tender in Nigeria and would be accepted alongside physical cash and complemented by an official mobile wallet application.
Image source: Shutterstock
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