Godwin Emefiele, the Governor of the Central Bank of Nigeria, announced yesterday that crypto trading would be permitted.
The lifting of the prohibition presents some problems, especially given the declining market and lower capitalization of key cryptos. Why are you doing this now? This is most likely due to the inefficiency of the banking institutions’ restrictions on the usage of digital assets.
Nigerians who trade digital assets have figured out a means to get around the restriction. They transferred money to bank accounts in adjacent countries, which were then exchanged on the P2P market.
In the 85 days after banks and platforms were banned from dealing with digital assets, the number of over-the-counter transactions has surged. The amount of peer-to-peer transactions has increased by 27%.
And this is in a country where Bitcoin and altcoins are owned by 32% of the population. Only 6% of the population in the United States, one of the world’s most powerful economies, holds digital assets.
This pattern is common in other African countries, but crypto trading thrives the greatest in Nigeria. The authorities enforce trade bans regularly and then allow a trade to resume, as they did this week. Let’s see how long it takes.
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