Italy’s State-Owned Bank Trials Digital Bonds on Polygon Blockchain
The European Central Bank initiated the trial to explore how blockchains can enhance central bank settlement.
High adoption and usage: Despite regulatory hurdles, Nigeria is one of the leading countries in adopting Bitcoin. The nation’s population increasingly uses Bitcoin for various purposes, such as remittances and investments, to hedge against local currency depreciation.
Regulatory environment: The Nigerian government and the CBN have held cautious about Bitcoin and other cryptocurrencies. In February 2021, the CBN issued a directive to financial institutions to close accounts involved in cryptocurrency transactions. Despite these restrictions, the government is exploring the potential of digital currencies through initiatives like the eNaira, Nigeria’s central bank digital currency (CBDC).
Economic implications: Bitcoin’s popularity in Nigeria is partly driven by economic factors such as inflation, currency devaluation, and the need for financial inclusion. With the Naira’s instability, many Nigerians see Bitcoin as a more stable store of value. Additionally, Bitcoin provides financial services to the unbanked and underbanked populations, offering alternative means to engage in the global economy.
Despite facing stringent regulatory measures, Nigeria’s interest in Bitcoin (BTC) and other cryptocurrencies remains robust.
The country’s economic challenges, including inflation and currency devaluation, have driven many Nigerians to seek alternative financial solutions. Google Trends Statistics revealed that Nigeria is Africa’s largest crypto market.
Currently, the country with the highest interest is BTC, followed closely by El Salvador. Geographic analysis indicates that Delta State is at the forefront of BTC interest, followed by Anambra, Ekiti, Enugu, Ondo, Ebonyi, Bayelsa, Osun, Edo, and Imo. Interestingly, Lagos, the commercial hub of Nigeria, is not among the top 15 cities in terms of Google search interest for BTC.
The data indicates that regions with insecurity, low bank penetration, and a significant millennial population are more inclined to adopt BTC for storing value and making payments.
Nigeria’s economic environment has been characterised by high inflation rates and a depreciating national currency, the Naira. These economic challenges have eroded Nigerians’ purchasing power, prompting them to seek stable investment options. With its decentralised nature and potential for high returns, BTC has emerged as a popular choice.
Nigerians have increasingly relied on stablecoins, particularly those linked to the United States dollar, to protect against inflation and currency volatility. A United Nations study indicates that Nigeria is among the youngest nations globally and one of Africa’s fastest-growing. Children under 15 years old constitute 43% of its population.
The Central Bank of Nigeria (CBN) has implemented several measures to curb the use of cryptocurrencies, citing concerns over financial stability, money laundering, and the financing of terrorism. Despite these efforts, the demand for BTC has remained strong.
In May 2024, the Nigerian government started preparing to implement new regulations prohibiting P2P crypto exchanges involving the Nigerian naira, the country’s national currency.
Despite regulatory challenges, the future of BTC in Nigeria appears promising. Several factors suggest that crypto adoption will continue to grow in the country.
Nigeria’s interest in Bitcoin remains strong despite regulatory restrictions. Economic challenges such as inflation and currency devaluation have driven many Nigerians to seek refuge in cryptocurrencies. While the Central Bank of Nigeria’s measures have made it more challenging to engage with Bitcoin through traditional financial channels, Nigerians have adapted by embracing peer-to-peer trading and other innovative solutions.
The European Central Bank initiated the trial to explore how blockchains can enhance central bank settlement.
n recent months, inflation measures, including the Consumer Price Index and Personal Consumption Expenditures Index, have moderated.
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