According to local reports, bitcoin’s weekly traded volume rose to N1.13billion ($3.4million) in the first week of March 2020. Data by Coindance, a bitcoin trade monitoring site, showed that Nigeria’s traded volume increased by over N130million to N1.13billion last week compared to N1billion traded volume recorded in the week ended February 27. Earlier this year, the Central Bank of Nigeria had directed that banks and financial institutions in Nigeria should close the accounts of persons found trading in cryptocurrency in the country.
Nigerians continue to trade cryptocurrency.
The apex bank stood its ground despite stakeholders’ intervention in the financial technology world, who urged the Nigerian government to consider embracing it and reconsider the crypto ban. Despite this, trading in cryptocurrencies resumed after the initial shock and panic sell-off. There are no options for naira payments on cryptocurrency trading exchanges such as Luno and Binance, and Nigerian traders are encouraged to continue trading using peer-to-peer (P2P). The increase in volume may also not be unconnected with the volatility in the price of bitcoin, the most popular of the cryptocurrencies in recent times.
Nigeria’s Vice President is supportive of cryptocurrencies.
Nigeria’s Vice President has said that blockchain technology will disrupt traditional banking in the coming years. As reported earlier, Vice President Yemi Osinbajo rebuked the recent ban on digital currencies, advocating for Nigerian authorities to regulate the industry. He noted during a recent Bankers Committee meeting. Yemi Osinbajo addressed several issues facing the Nigerian economy, calling for the financial services industry to adopt new digital approaches to stay competitive. The Vice President said that blockchain technology in general, and cryptocurrencies in particular, will in the coming years challenge traditional banking in ways that yet can’t be imagined.