- Nigeria’s dual currency system goes triple with the emergence of cryptocurrencies
- Nigerians are highly dependent on cryptocurrencies
- Nigerians have little faith in Naira
Nigeria’s conversion ladder picture, overwhelmed by underground market authority and tariffs, currently has a “cryptocurrency conversion ladder” as a competitor as Nigerians are collecting cryptocurrencies around 2020 due to low confidence in Naira, reports Bloomberg.
The Naira Authority Rate is under the control of the Central Bank of Nigeria. Again, unapproved changes in the underground market rate, given the interest of the market, reflected the real value of the Naira as much as the needs are.
In any case, as Nigerians buy USD to buy advanced assets, the new crypto conversion ladder could present the best representation of Naira’s value. On July 27, the real rate of the naira against the dollar fell to 424.34 per dollar. However, the underground market rate has weakened to 670 naira, which is 58% more expensive than the officially controlled rate.
During a similar period, Binance recorded Nigerian wallet trades worth up to $ 103,691 in 24 hours or less. For the first quarter of 2022, Nigerians traded $ 185 million worth of Bitcoin on Binance.
Nigeria has one of the highest cryptocurrency receiving rates on the planet. Interest in cryptocurrencies increased in 2020 for Nigerians. It has grown so much that Nigeria has become one of the countries that led the 880% increase in receiving cryptocurrencies that year. In 2021, 24.2 Nigerians said they own something like a cyber asset.
As noted by the Gemini State of the World Crypto Report 2022, 26% of Nigerians own something like some type of cryptocurrency. A larger part of the country (63%) sees cryptocurrencies as the eventual fate of money, while over 44% of non-cryptocurrency owners said they want to buy cryptocurrencies in the next year.
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The Nigerian government seems to have continually changed its perspective when it comes to cryptocurrencies.
During the peak of reception among Nigerians, the public authority began cutting the e-Naira, the country’s stablecoin, in September 2021.
In October 2021, the public authority declared the e-Naira project indefinitely suspended. Then at that moment they sent the e-Naira fourteen days later.
After the e-Naira was sent, the Nigerian authorities banned all monetary organizations from working on crypto accounts.
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