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Cryptocurrency

How Crypto can curb Nigeria’s high unemployment rate

Cryptos, when fully adopted, will have a considerable impact on Nigeria, by increasing the financial inclusion of individuals and companies.

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Nigeria, the largest economy in Africa, has been unable to efficiently tackle its increasing unemployment rate – a ticking time bomb, if not addressed quickly. In 2020, the frontier market witnessed a rise in its unemployment rate, due to an ever-growing dependent population, reduction in the total output of goods and services, and the unprecedented COVID-19 pandemic, which negatively impacted the economy and led to job loss for thousands of Nigerians.

READ: CBN to drive implementation of zero balance account opening in banks

Data from the National Bureau of Statistics (NBS) revealed that:

  • Nigeria’s unemployment rate as at 2020 Q2 reached 27.1% — indicating that about 21,764,614 (21.7 million) Nigerians are unemployed.
  • Also, 13.9 million Nigerian youths are unemployed.
  • Youths between 15-24 years constituted the highest unemployment rate, 40.8%; followed by youths between 25 – 34 years, 30.7%.

READ: How young Nigerians are investing to leave the country

Such unimpressive economic data can be curbed, if Nigerian regulators and stakeholders tap into the potentials inherent in cryptos, to further strengthen the development of Africa’s largest economy.

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Cryptocurrencies can help tackle the numerous challenges faced in international trade by many Nigerians, who don’t have a bank account. With the help of blockchain technology, many unemployed Nigerians can utilize the tools behind crypto and blockchain to generate income, as traditional jobs steadily become outdated.

READ: Nigerian fintech companies raised $600 million in five years – McKinsey Report 

Cryptocurrencies like Bitcoin could also help the unemployed facilitate small-scale international trade. Bitcoin enables these parties to sell products in exchange for Bitcoin and a boycott of traditional e-commerce systems, which often involves having to set up a merchant account with traditional banks, coupled with its attendant charges.

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Cryptos, when fully adopted, will have a considerable impact on Nigeria, by increasing financial inclusion of individuals and companies. Particularly, by reducing the transaction fees and time, cross-border payments can be improved. This is beneficial for remittance payments, peer-to-peer lending, and international trade.

READ: South South States lead in Nigerian unemployment

Experts discuss the utilization of cryptos to curb unemployment

In an exclusive interview with Nairametrics, Chike Okonkwo, Business Development Manager, OKEx, spoke on the role crypto can play in providing income for a substantial number of young Nigerians.

“Since the adoption of cryptocurrency in Africa, Nigeria has become a major hot zone in the African cryptocurrency space. The adoption of blockchain/cryptocurrency by Nigerians, has been able to give jobs to young Nigerians like me.

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READ: Nigeria records lowest remittances from abroad since 2008

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“The industry will further curb unemployment in Nigeria, but to achieve this — Blockchain and Crypto education must be a key focus because it’s a young industry. I personally encourage a lot of young people looking for a career path to explore the blockchain and crypto space.

“We need people who understand business development, media, marketing, programming, Crypto trading, legal Compliance, design/graphics, etc. in the industry.

“Young Nigerians have built trusted platforms for buying and selling of cryptos and there is more to come. I am a member of Stakeholders in Blockchain Association (SiBAN), which aims to unite/self-regulate players in the industry and Blockchain Nigeria User Group (BNUG), with core focus on educating people about the Industry.”

Charles Okaformbah, Blockchain Solutions Architect, in a note to Nairametrics, gave key insights on the job opportunities that crypto can offer Nigeria’s growing population.

“Aside the trading activities carried out by Nigerians, DeFi products can be created with cryptos to help create businesses that will employ more Nigerians.

“Trading with little funds might not really yield much in comparison with the inflated cost of living, but long-term investments on solid crypto-assets have proven to be a game-changer or yielded much more returns.

“Remittances can also be done with cryptos at a charge for international traders, who are currently limited by government’s monetary policies.

“There is also crypto-collateral. Aside crypto as an end-product, employment can also be provided via tech for tech enthusiasts/geeks, by creating their services like crypto/blockchain solutions for organizations, developing crypto-related products, providing audit for smart contracts, crypto forensic auditing, project management, and a whole lot more.”

Bottom Line

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Digital currencies or cryptocurrencies as a standalone will not make an all-encompassing impact on the Nigerian unemployment index. However, Nigeria must start building native Blockchain Infrastructures post-pandemic.

This way, the core sovereignty of the technology will originate and mutate in meeting our unique Nigerian market niche. The domino effect across the skilled, entrepreneurial and regular professional layers would be massive.

The improvement of financial inclusion is the most significant and most developed benefit of crypto-currencies for Nigerians.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

1 Comment

1 Comment

  1. Wyatt

    November 21, 2020 at 11:43 am

    God bless Naira metrics

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Cryptocurrency

$385 million worth of Bitcoin moved by unknown identity

As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.

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3 BTC whales move 140 million worth of Bitcoins from Binance

Large entities are taking the center stage at the fast-changing financial market, amid strengthened price volatility seen at the flagship crypto’s (Bitcoin) market.

What we know

Data retrieved from, advanced crypto tracker, Bitcoin Block Bot, revealed that someone moved 22,816 BTC ($386M) in block 658,953 some hours ago.

READ: Two cryptos you should consider investing in

READ: 100,000 tons of cocoa stranded at ports due to CBN documentation – Cocoa exporters

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READ: Crypto: Financial market that never sleeps, or is under any central authority

As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.

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At the time of writing, Bitcoin was trading at $17,048.47 with a daily trading volume of $28,874,917,829.

It’s critical to observe that recent price action in the flagship crypto market indicates that a significant number of buyers have been aggressively buying at the $16,000 price support level which is marked by large entities.

READ: Crypto: Large investors transfer over 700,000 Ethers

This further illustrates that the demand for bitcoin is relatively high, as bitcoin whales curb broader pullback, at least in the near term.

Nairametrics, predicts the increased buying pressures by such large entities are partly responsible for the relative rebound seen in the bitcoin market.

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READ: Ripple locks 800,000,000 XRP, prices push up

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Although it’s often difficult to predict movements in the crypto market, taking into account high volatility. BTC whales have shown historically that they often determine the BTC trend.

What this means from a macro level is that the increase in the number of these large entities can be considered bullish.

Explore Data on the Nairametrics Research Website

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Cryptocurrency

Ripple on steroids, up 11%

Ripple recorded its highest percentage gain since November 24, gaining up to 10.61%.

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Crypto owners robbed of 1,150,000 XRP, Ripple owners say XRP will be worth $100, XRP losing steam as BTC & ETH gain investors' funds

Popularly known crypto asset, XRP, is recording significant appreciation in its price amid increased buying from global investors.

What we know

Ripple recorded its highest percentage gain since November 24. At the time of writing, it had gained 10.61%.

READ: PAX Gold: Crypto backed by gold but outperforms gold

  • The move pushed Ripple’s market value to around $24.09 billion, or 4.83% of the total cryptocurrency market capitalization.
  • Also, the third most valuable crypto asset has been trading from $0.50451 to $0.58549 for some hours now.
  • At such prevailing price, Ripple has plunged by 83.68% from its all-time high of $3.29 set on January 4, 2018.

READ: Germany’s biggest bank says more people now prefer Bitcoin over gold

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XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.

Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.

READ: World’s biggest asset manager, BlackRock says Bitcoin will overtake gold

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It plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.

Unlike its major crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered, and Barclays for international transactions worldwide.

Explore Data on the Nairametrics Research Website

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Cryptocurrency

Canadian investment company buys more Bitcoin

The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020.

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Canadian investment company buys more Bitcoin, Bitcoin price drops $1400 in minutes, Binance, BTC wallets holdings 0.1 BTC reaches all time high, 13,000 BTC wallets are now worth more than $1,000,000

Cypherpunk Holdings a publicly listed Canadian investment company, amid record sell-offs prevailing in the flagship crypto market, has recently purchased more Bitcoin (BTC).

The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020. Cypherpunk holdings raised cash by selling other crypto-assets like Monero (XMR) and Ethereum (ETH).

READ: Total credit to the economy rose to N19.54trillion – CBN Governor

With the purchase, Cypherpunk now has 276.5 Bitcoins making it the 9th public Bitcoin holder. At current values, such crypto is worth about $5 million.

The report further added that “During October 2020, Cypherpunk Holdings Inc. was added to the unofficial list of public companies with a treasury position in Bitcoin alongside other companies such as MicroStrategy [MSTR], Square [SQ], and Galaxy Digital Holdings [GLXY].”

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READ: Bitcoin boosts Square earnings in Q3

At the time of writing, Bitcoin price traded at $17,151.39 with a daily trading volume of $44 billion. BTC price is down -3.0% in the last 24 hours. It has a circulating supply of 19 million coins and a max supply of 21 million coins.

Recall a publicly-traded company based in America, MicroStrategy, adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is seen in many quarters as a big deal and it’s good to see BTC’s being used as intended – a hard money/savings instrument.

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READ: Gold Prices cross $1800, first time since 2011

Bottom-line: The many global economic uncertainties that include inflation and the depreciation in value for most global fiat currencies have made cash an unreliable store of value, pushing well-known companies like Square, MicroStrategy, Grayscale to store their value in a deflationary currency like Bitcoin.

READ: Global companies are buying Bitcoins to hedge against inflation

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