Nigeria Becomes Second Largest Market For Bitcoin Despite CBN Warning

Nigeria is now the second largest market for Bitcoin, behind the United States. Despite Bitcoin not being recognised as a legal tender in Nigeria, with citizens warned against cryptocurrency, Nigerians still traded bitcoin valued over $500 million in five years.

According to data from Coin Dance, Nigeria traded 60,215 bitcoins, valued at more than $566 million. It was gathered that Bitcoin transaction increased yearly at least 19% in volume since 2017, with this year accounting for the highest volume, which is 20,504.50.

The bitcoin trade was monitored on Paxful, which showed registration increased by 137% in 2020. The pandemic and the EndSARS protest had contributed to the hike in bitcoin  trade in Nigeria, as about 40% of the nearly $400,000 raised during the EndSARS protest was bitcoin.

Note that the Central Bank of Nigeria (CBN), and Nigerian lawmakers had spoken against the use of cryptocurrency by Nigerians, with the CBN stating that Naira remains the only legal tender for trade in Nigeria.

Bitcoin transaction has been said to be unsecured due to the market being unregulated within the country. It is also said to be vulnerable. But with data from Coin Dance, Nigerians are less bothered.

Paxful is a Peer-to-Peer (P2P) exchanges, which allows sellers to connect directly with buyers. Behind U.S and Nigeria, were China, Canada, U.K, India, Australia, Kenya, Philippines, and South Africa respectively.