Nigeria’s cash scarcity menace has led to an increasing interest in crypto assets among Nigerians, as Google search data points to a strong appetite for stablecoins.
According to Google Trends data, Nigeria has the biggest interest in Tether, the world’s most popular and most capitalized stablecoin with a perfect score. The country is followed by Ghana and Singapore.
Growing interest explained: The benefits of USDT for Nigerian cryptocurrency investors are numerous. Although stability is its primary selling point, it also provides several other advantages.
Many believe that USDT is the most practical way for crypto assets to go mainstream because it contributes to the digitization of the USD, especially in a nation that has recently had FX liquidity concerns. Stablecoins pegged to the dollar are viewed as a tool by a sizable portion of Nigerian youths to shield their savings from local inflation.
Without a doubt, USDT is one of the crypto world’s most reliable candidates right now. In an otherwise very volatile market, USDT may be the best option for investors seeking exposure to a cryptocurrency with a relatively low level of risk. For illustration, let’s examine the price changes of USDT over the previous year and contrast them with those of Bitcoin or any altcoins.
A good alternative to cash: Dollar-based stablecoins have emerged as an appealing alternative for consumers and companies in areas that experience local currency instability. People in Ghana, another country with high inflation, are increasingly using stablecoin after the cedi fell to record lows versus the dollar.
This interest coincides with the Central Bank of Nigeria’s milder position towards stablecoins. The apex bank recently published an 83-page CBN research report titled ‘Nigeria Payments System Vision 2025’ that examined the creation of a legal framework for the future introduction of a stablecoin in Nigeria.
The document claimed that payment systems based on stablecoins will likely be successful in the nation, and a framework must be developed. The CBN earlier took a stern stance toward the digital sector in 2021, effectively banning banks within the Nigerian financial system from servicing cryptocurrency exchanges.
Young Nigerians are also becoming more interested in the crypto market because of the country’s meagre state of financial services. The failure of financial inclusion, particularly in the rural areas which are best characterized as ‘inadequate’, is the same reason why many Nigerians are highly attracted to these digital assets.
According to a report released by KuCoin, 35% of Nigerians were investors in the Crytpo market currency market as of April last year. Part of the report said:
- “The poll found that women make up 50% of cryptocurrency investors, on par with men. The breakdown of investment motivations shows that 53% of investors view cryptocurrencies as dependable value-storage and payment methods, 50% invest for higher long-term returns, 40% try to build their businesses and improve their living standards, 36% invest as a source of additional income to their salaries, 34% aim for financial independence, and 26% hope to rely on cryptocurrencies as their primary source of income without having to work additional jobs.”
