According to analysts and experts, the interest in trading cryptocurrency in Nigeria is growing every day.
Also, it represents a disruptive and groundbreaking innovation that will contribute to the development of this country’s economy.
It will also impact the blossom of the whole continent.
The difference between credit cards and the digital wallets and currency lies in the fact that the crypto assets and transactions are not regulated neither by the governments or by any country’s financial authority.
This means that transactions can occur anywhere on the planet.
Regarding the African continent in its entirety, the most popular is still Bitcoin.
Cryptocurrencies as Antidote for Corrupted Financial System
African countries, and especially Nigeria and several other countries from West Africa, are highly impacted by inflation and extreme poverty.
That’s why people are opting for alternative ways of making money and investing.
Trading Cryptocurrency in Nigeria is the antidote for the horrible Central Bank policies.
In Africa, there are countries with double-digit inflation rates, and Nigeria is one of them.
These countries are also the main Bitcoin markets in the African continent.
The central Bitcoin countries are Nigeria, Botswana, Ghana, Zimbabwe, and South Africa.
As reported by the GSM Association, there were more than 170 million mobile phone users in Nigeria by January 2020.
This means that more people in Nigeria can have access to Bitcoin and blockchain technology.
The millennial users are the most prone to enter the cryptocurrency ecosystem.
Without access to the financial market and banks and living in politically unstable countries, Nigerian citizens are eager to be part of the cryptocurrency ecosystem.
The Nigerian political and economic system is deeply corrupted; the people must find their way to get the chance of taking part in the cake.
The fear of the Nigerian financial sector’s collapse is omnipresent, and the threat of appropriating the money stocks by the government.
The role of Bitcoin is to put an end to the procedural bottlenecks that negatively affect banking services.
Will Crypto Trading in Nigeria Soon Be Regulated?
Nigeria’s Exchange Commission claimed to be ready to regulate trade in cryptocurrencies to ensure investors’ protection and the transparency of transactions.
The objective of the regulation is to create the standards and principles that will encourage ethical trading practices.
Not as long ago, notably in 2018, the authorities of the West African countries were not prone to accept cryptos as the regulated money.
But, since the crypto exchanges are already very popular and many citizens of Nigeria have already created their digital wallets in virtual banks, the authorities agree that the earlier it is regulated, the less damage will be on the economy.
So far, the Nigerian government was powerless to put the cryptocurrencies into legitimate frames reported by the Nigerian central bank itself.
According to Nigerian financial authorities, it’s quite impossible to regulate the crypto market because it would be the same as trying to control the internet itself.
According to Shireen Ramjoo, CEO of a South African cryptocurrency consulting firm, we can soon expect to have government-issued cryptos.
Cryptocurrencies are to be around for years. But without crypto regulations, trading cryptos in Nigeria, as in all the other parts of the world, is a double-edged sword.
Any sudden fluctuation in price could leave traders and investors with no way of escape.
Since Nigeria is a high-risk country, the digital currencies could be used for suspicious activities.
Many financial authorities believe that the risks of trading cryptocurrencies outweigh the gains.
They have also banned Bitcoin and ICOs (initial coin offerings), mainly used by start-ups businesses, to evade capital demand by financing institutions.
Some of the biggest scams related to the crypto trading happened in Nigeria.
It is additional reasons to regulate and better control the crypto market in this country.
Despite some unpleasant experiences regarding the scamming companies and individuals, Nigerians are still taking risks in investing in the cryptocurrency.
It’s possible that Nigeria, and the rest of the continent, will embrace the crypto innovation because African countries need blockchain.
Its implementation on the finances means for the African people to take part in the world’s financial market.
Besides, it can improve their economic situation, which at the current moment is far from good.