Cryptocurrency
Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban
Africa’s largest economy, Nigeria, posted Bitcoin monthly P2P volumes of about $31 million
Africa’s largest economy, in spite of the recent crypto ban reminder issued by Nigeria’s Apex bank, has posted a surge in monthly P2P volumes to about $31 million on two major P2P exchanges that include Paxful and Local Bitcoins.
According to a new study seen by Nairametrics, Africa’s biggest crypto market has seen about a 15% surge of activity in peer-to-peer transactions since the Central Bank of Nigeria issued a circular reminding financial institutions in Nigeria about the prohibition in crypto-related transactions.
READ: Nigerian banks allegedly close accounts dealing with Crypto
As bitcoin’s usage has been rising steadily in emerged markets, recent data suggest Nigerians are not giving up on the world’s most popular cryptocurrency, so it becomes unsurprising that transactional volumes printing out from Nigeria combine other African nations in relation to bitcoin P2P.
Data seen from Usefultulips, a BTC analytic data provider, showed Africa’s leading oil producer-led Africa’s peer to peer transactions in the last 30 days, as it posted monthly P2P volumes of about $31 million, followed by the Kenyans and Ghana each posting about $12.1 million and $8.4 million respectively.
What you must know: In Bitcoin’s case, P2P is the exchange of BTC between parties (such as individuals) without the involvement of a central authority. This means that peer-to-peer use of BTC takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
However, the effect of the CBN crypto ban is already breeding bad actors currently taking advantage of the high thirst for Bitcoin. Luno, a leading African-based Crypto exchange, in an email sent to Nairametrics, shed more light on the cost bitcoin buyers in Nigeria must bear.
READ: Ethereum becoming harder to buy on Crypto exchanges, trading at $1,781
“Pushing people underground also makes it easier for scammers to exploit Nigerians, and we are already seeing Bitcoin trade at huge premiums in the country as a result of the ban.
“Other companies have made the choice to find workarounds that are less visible for regulators – for example, Peer-2-Peer (P2P) trading. Our view is that P2P trading would go against the spirit of the CBN’s directive.
“We believe that the focus should instead be on demonstrating to the CBN that exchanges such as Luno have the necessary controls in place to address the concerns it has in relation to cryptocurrencies.”
Bottom Line: A significant number of Nigerians are hell-bent on leveraging on Bitcoin to sustain and drive their earnings amid rising inflation and stringent access to FX liquidity in Africa’s biggest economy as it offers most of them the easiest and cheapest means of moving capital in relation to other traditional means of payments.
Cryptocurrency
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Bitcoin is on fire, breaks above all-time high
The flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion.
Bitcoin prices ascended to a record high on Tuesday, hitting another milestone at above $62,000, a move that many reaffirm to be a bullish trend in the cryptoverse and one that can make other digital assets surge.
At the time of writing this report, the flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion. Bitcoin is up 2.99% for the day. The world’s most popular crypto now has a market value of about $1.17 trillion.
Adding credence to the strong bullish run in play is data retrieved from Glassnode pointing to the fact that holders of the flagship crypto are selling less, as Bitcoin deposits on exchanges hit a 30-day low.
BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702.
READ: Why Bitcoin might likely hit $100,000 soon
📉 #Bitcoin $BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702
View metric:https://t.co/v3uKq4dCjX pic.twitter.com/MTLDQeL5Oj
— glassnode alerts (@glassnodealerts) April 13, 2021
READ: Bitcoin produces 4 billionaires worth at least $3 billion each
More details later…
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