As the price values of cryptocurrencies are surging including the bitcoin, the searches about bitcoin and other digital currencies are also touching high figures. However, the searches are rising across the world but African countries are on the top. This also shows that cryptocurrency adoption in African countries is booming- especially Nigeria that is also leaving behind the other African countries.
In some recent years, it is observed that bitcoin adoption increased in those states or countries where inflation makes its place. In such types of conditions, people always for an alternative money source. Bitcoin is, therefore, replacing the usage of fiat currency in these African countries.
1st Reason: Economic Conditions
The people in African and most of the Asian countries are living in poverty and are facing many financial challenges. Nigeria is in drastic economic from some past years and the country’s inflation rate is surging with every passing year. These tough conditions in the economy have led people to bitcoin and other digital currencies.
2nd Reason: No Strict Regulations for Bitcoin
To date, the government has not taken any strict steps to lessen these activities as a threat to the economy. Such a loose financial structure on the part of the Nigerian government permitted citizens to use Bitcoin to an unprecedented level. According to Coin Dance, the trading volume on Localbitcoins is reaching nearly $1.65 million every week.
3rd Reason: Remittance Charges are High
The country is taking refuge from the remittance capital as so many people go abroad and send money back to their relatives. The Central Bank of Nigeria reported that $17.57 billion received via remittance from January to November 2019. And these payments across the borders are expensive as Nigerian banks cuts tax up to 10%.
Due to the above-mentioned factors, citizens are taking interest in bitcoin as there are many financial platforms that accept bitcoin as payments. Similarly, various local exchanges are also operating that can easily swap Bitcoin with the native fiat currency, naira.
Frontier of Cryptocurrency
Cryptocurrency is currently facing the issue of mass adoption at a wider level as most of the countries ban its usage and transactions. Some of them have regulated policies that are unfit to trigger the adoption of bitcoin. But, out of all, African countries are taking interest in cryptocurrency seriously. The bitcoin searches and trading volume on Localbitcoin are foreshadowing that Nigeria might become the hub of cryptocurrency.