- In Nigeria, three months after a ban on financial institutions dealing with crypto firms, P2P trading volumes are surging.
- Worsening economic conditions, according to analysts, necessitate the creation of alternatives to the conventional financial system.
According to analytics platform UsefulTulips, Bitcoin P2P trading in Nigeria has increased by 27% after the country's central bank imposed restrictions (CBN).
"peer-to-peer platforms like Paxful are not affected by the action," she added, adding that "as a result, all peer-to-peer services are seeing growth".
Nigeria is known as Africa's Bitcoin Nation due to the country's youth's passion for cryptocurrency; its trading volumes set records prior to the controversial ban.
Nigeriaâ€™s faltering economy sparks crypto action
However, the volatility of Nigeria's currency, the Naira, may be the most important factor. According to the World Bank, up to 20 million Nigerians, or around 10% of the population, could be forced into poverty by 2022, owing to the pandemic-related economic crisis; the country's unemployment rate has quadrupled to 33% since President Muhammadu Buhari took office in 2015.
You donâ€™t throw away the baby with the bath water. You donâ€™t destroy Nigeriaâ€™s economy because of regime security. If you have issues with #Crypto #BitCoin, regulate it, but donâ€™t eliminate it. Eliminate it and you eliminate jobs. And our youths need jobs! #EndSARS #TableShakerâ€” Reno Omokri (@renoomokri) February 5, 2021
Most of the activity takes place on the peer-to-peer (P2P) network.