Nigeria is Africa’s biggest crypto market amid bank trading ban

Nigeria, Africa’s largest economy has a reputation for having one of the highest rates of cryptocurrency adoption worldwide. In actuality, more than a third of all crypto owners in Africa reside in this nation.

In terms of ownership of crypto assets, Africa is lagging behind the rest of the globe. According to Triple A’s most recent cryptocurrency ownership data, 53 million people in the continent already possess digital currencies like Bitcoin (BTC) and Ethereum (ETH), making up more than 16.5% of the over 320 million crypto owners worldwide.

On the continent, Nigeria has the most digital asset owners. More than 22 million people in the nation, or more than a third of the continent’s population, are proprietors of digital currencies.

Nigeria is rated fourth in the world according to Triple A’s rating of bitcoin owners. With 46 million owners, the United States tops the list, followed by India and Pakistan at the second and third slots, respectively, with 27.4 million and 26.4 million crypto owners.

Owners and traders of crypto assets are primarily motivated by financial gain and remittance despite CBN’s crypto ban.

Crypto transaction ban in Nigeria

• Recall that the CBN sent a circular to banks and other financial institutions outlawing cryptocurrency transactions and enabling payments for cryptocurrency exchanges. It is illegal for Nigerian banks to provide services to clients who deal in digital currency.
• Banks quickly complied with the law and closed the accounts of cryptocurrency exchange companies and individual users in response to the approaching threat of enormous fines.
• The majority of Nigeria’s youth are currently unemployed. Africa’s most populated country has the third-highest official unemployment rate in the world, with nearly one in three young people unemployed.
• Nigerian university students have joined this idle congregation because the Academic Staff Union of Universities (ASUU) has been on strike since the first quarter. Trading cryptocurrencies is one way these young Nigerians stay busy and earn a living.
• Despite losing more than 65% of its value since its peak in November, the leading cryptocurrency has nonetheless shown to be one of its best financial assets over a long-time frame among many Nigerian youths.
• Unsurprisingly, when it comes to “the number of persons searching for “bitcoin” and “blockchain” terms on Google,” Nigeria tops the list of African countries. Another study suggests Nigeria is the world’s most crypto-obsessed nation.

Other African countries with most crypto owners

With 7.7 crypto owners or 12.5% of the population, South Africa has the second-highest percentage of cryptocurrency owners on the African continent, behind only Nigeria. Third-placed Kenya has 6.1 million cryptocurrency owners or 11.6% of its total population.

The final two of the top five African countries with the most crypto owners are Egypt and Tanzania, with respectively 2.37 million and 2.32 million owners each. Seychelles, which has an estimated 1,257 cryptocurrency owners, is the least-ranked African country.

These numbers unquestionably demonstrate how unsuccessful, in this case, the effect crypto trading ban via Nigerian banks despite many users buying at a premium. Industry stakeholders have already expressed their worries about the need for regulatory reform on the part of the government.

On multiple occasions, stakeholders, notably those in the Blockchain Technology sector, have stated that Nigeria will benefit from advancements in cryptocurrencies.

It’s also important to note that the sector participants are pleading with the government to encourage cryptocurrency development amid so many untapped opportunities.