According to a new report, crypto usage has exploded in Nigeria, owing to the country’s lack of inexpensive fiat-based financial services.
Many Nigerian residents have begun to use cryptocurrencies as a viable alternative to store and transfer assets, according to the “Into the Cryptoverse Report” by cryptocurrency exchange KuCoin.
According to the research, 33.4 million Nigerians aged 18 to 60 own or exchanged cryptocurrencies in the last six months. Nearly 17.36 million Nigerian crypto investors (or 52 percent) have put more than half of their money into the digital currency.
Countering growing fiat inflation is one of the key reasons why investors all over the world are diversifying traditional assets into cryptocurrency. Last month, a group of investors in the United Kingdom were polled, and the majority thought that tokens were safer and more secure than traditional investments like gold, oil, equities, and real estate.
Peer-to-peer trading is the most popular means of converting money into crypto assets among Nigerian investors, according to the KuCoin research. Over the next six months, about 23.38 million Nigerians, or 70% of present crypto investors, will double down on their crypto adoption frenzy.
Nigeria fiat currency has lost more than 209% of its value
The naira, Nigeria’s fiat currency, has lost more than 209% of its value in the last six years, making deflationary assets like Bitcoin attractive to local investors (BTC).
While the bulk of Nigerian crypto investors began their adventure many years ago, the survey also shows that 26% of them only started investing in cryptocurrencies six months ago, thanks to the 2021 bull run, which saw BTC prices momentarily exceed the $69,000 level.
President Muhammadu Buhari of Nigeria introduced the eNaira, the country’s central bank’s digital currency, in October 2021. CBDCs are being considered as a digitised fiat replacement by a number of governments throughout the world, particularly to save operational costs and speed up cross-border payments.
According to PwC’s newly issued “2022 Global CBDC Index,” the eNaira is the most developed CBDC, scoring 95 out of 100 in both retail and wholesale categories.
In April, cryptocurrency exchange Gemini issued a report that predicted a large increase in worldwide crypto investors in 2021.
According to the analysis, India, Brazil, and Hong Kong had the highest levels of cryptocurrency adoption, with more than half of those surveyed admitting to investing in cryptocurrencies.