The country’s government recently banned crypto trading in the region, but that didn’t stop citizens from exploring the booming industry. The asset’s current price is around $50,000, taking the nation’s Bitcoin premium to around $80,000, one of the world’s highest. Many people expected the ban to completely eradicate digital asset trading since the Central Bank of Nigeria warned financial institutions from aiding exchanges.
Users and traders have found other ways to withdraw and use their earnings without banks and other institutions’ help. Although the trading is currently prohibited, the premium sells above 50% of the market price, showing that locals are still actively involved in crypto investments.
Nigerian trade Bitcoin at 52% due to p2p trading
Some analysis shows that Nigeria’s asset sells around 52% of the global market price, as seen by one of the country’s most used exchanges, Luno. Luno is slowly gaining some popularity within the nation as the Bitcoin sector continues to thrive even with its challenges. The exchange shows that even with the asset trading around $52,000 in most markets, the digital asset sells for $80,000 in the populous nation.
More information shows that the price gap between the global market price and Nigeria’s price continues to grow daily. Statistics show that the asset was selling around 30% above market price days ago, before recently hitting the 50% premium.
Sources explain that Nigeria’s price is far above other countries’ prices on the list, as Bitcoin’s value continues to skyrocket within the region. The next country on the list with a high premium is Venezuela, which has only 3.5% above the market value.
The other three countries that make up the top five are Argentina, Malaysia, and Chile. The three nations have a below 3% increase against the asset’s market price. Experts explained that the incredible gap is due to citizens’ dependence on peer-to-peer trading to sell or buy their assets.
Peer to peer becomes the country’s top alternative
The p2p’s rise is because the Central Bank issued a circular that stops banks from aiding crypto transactions and orders them to close down accounts associated with crypto trading. Traders had to find an alternative to continue crypto trading, thereby boosting peer-to-peer trading within the region.
Banks are not allowed to partner with exchanges due to the new law, which has led to the closing of crypto-related accounts. The new law prohibits cryptocurrency and prevents some fintech firms from performing well, thereby leading to the closedown.
Nigeria continues to hold the spot as the world’s second-biggest p2p market, as the ban has led to more individuals using the platforms to settle their transactions. The platform continues to record higher volumes, meaning that there are greater opportunities yet to be discovered in the market.
Binance also recently introduced a new service to the region, following the apex bank’s requirements, where Nigerians can buy cryptos with their currency. The new development will further increase digital asset growth in the region while helping individuals purchase crypto safely.
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