No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The Nigerian exchange rate system, which is dominated by official and black market rates, now has a “cryptographic exchange rate” as a competitor, as Nigerians have accumulated crypto since 2020 due to their low confidence in Naira. I am. Bloomberg Report.
The Association of Bureau de Change Operators of Aminu Gwadabe, President of Nigeria, Bloomberg Regarding the emergence of new rates, he said:
“More people are buying cryptocurrencies because they have lost confidence in Naira. The US dollar rate on the cryptocurrency floor is used to determine the value of the local currency.”
The official rate of Naira is under the control of the Central Bank of Nigeria. On the other hand, changes in fraudulent black market rates based on supply and demand better reflected Nayirah’s actual value.
However, when Nigerians buy US dollars to buy digital assets, the new crypto exchange rate may best represent the value of Naira. On July 27, Naira’s official rate against the US dollar fell to 424.34 per US dollar. However, the black market rate dropped to 670 naira. This is 58% higher than the officially managed rate.
During the same period, Binance recorded transactions from Nigerian wallets worth up to $ 103,691 within 24 hours. In the first quarter of 2022, Nigerians traded $ 185 million worth of Bitcoin on Binance.
Nigeria has one of the highest cryptographic adoption rates in the world. For Nigerians, interest in cryptography surged in 2020. It soared so much that Nigeria became one of the countries that led the increase in cryptography adoption by 880% that year. In 2021, 24.2 Nigerians stated that they own at least one digital asset.
According to Gemini’s 2022 Global Cryptocurrency State report, 26% of Nigerians hold at least one form of crypto assets. While the majority of the country (63%) sees crypto as the future of money, more than 44% of non-crypt owners say they are interested in buying crypto next year.
The Nigerian government seems to be constantly changing when it comes to cryptocurrencies.
With the surge in recruitment among Nigerians, the government began work on the country’s stablecoin, e-Naira, in September 2021. In October 2021, the government announced that the e-Naira project had been suspended indefinitely. Two weeks later they launched the e-Naira.
After the launch of e-Naira, Nigerian authorities have banned all financial institutions from operating crypto accounts.
