Cryptocurrency usage in Nigeria continues to grow rapidly, fueled by a weakening national currency and high inflation, according to a report by blockchain research firm Chainalysis.
Nigeria ranked second in Chainalysis’ Global Adoption Index and recorded $59 billion in cryptocurrency transactions between July 2023 and June 2024, a 4% increase from the previous year.
With many Nigerians facing difficulties accessing dollars due to a foreign exchange crisis, cryptocurrencies, especially stablecoins, are being used for business payments, cross-border remittances, and as a hedge against inflation.
Despite government crackdowns on crypto transactions in 2024, including attempts to block access to platforms like Binance, Nigerians continue to engage in peer-to-peer crypto activities.
Stablecoins play a significant role, accounting for 40% of stablecoin inflows in Sub-Saharan Africa, and are favored for their speed and affordability in sending money across borders.
Many Nigerians now see cryptocurrencies as a useful tool for daily transactions rather than just a way to make quick profits.
In response to the ongoing growth of the cryptocurrency sector, Nigerian regulators are beginning to take a more open approach.
The Federal Inland Revenue Service (FIRS) acknowledged the need for laws regulating the crypto ecosystem, while the Securities Exchange Commission (SEC) has started approving principles for crypto operators.
This shift signals a move towards regulatory clarity in Nigeria’s expanding cryptocurrency market.
Punch