Nigerians Bitcoin P2P trade volume spikes despite CBN restrictions, over N77.5bn traded in first quarter of 2022
June 11, 2022 8:15 AM
Nigerians Bitcoin(BTC) P2P trading volume surpasses N77.75bn ($185m) in just the first quarter of this year despite the Central Bank of Nigeria(CBN) restricting crypto transactions in the region.
According to data made available by Paxful, a leading cryptocurrency P2P platform in the region. The N77.5bn worth of Bitcoin(BTC) traded already in 2022 is an approximately 5.71% increase when compared to N73.54bn traded over the same period in 2021.
The data under review showed Nigeria's Bitcoin(BTC) trade volume accounted for over 25% of the total $715 worth of BTC traded on Paxful over the corresponding period of time.
Paxful confirmed Nigeria was its largest trading country in 2021 with 16,000 daily trades. Bitcoin(BTC) has lost a huge chunk of its market share, shedding $36.90bn from $902.10bn as of January 1, 2022.
According data from Coinmarketcap, the global cryptocurrency market cap stands $1.20T a 3.5% decrease from the previous day. Meanwhile, Bitcoin(BTC) currently trades at $29,289.45 and has a market dominance of 46.72% at the time of writing.
CBN Restrictions invalid?
The Central Bank of Nigeria (CBN) restricted cryptocurrency trading in the country. In February of 2021, according to a circular from the regulators, the CBN asked banks and financial institutions to stop services users and entities dealing crypto in the country.
The regulators said “the CBN hereby wishes to remind regulated institutions that involving in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited,” in response to the circular.
Nigeria's crypto P2P trading volume experience a huge spike since the ban. if a 2021 report by Chainalysis is anything to go by, Nigeria is the sixth fastest growing nation in terms of crypto adoption worldwide. Additionally, global crypto exchange KuCoin recently reported that about 33.4 million Nigerians own or trade cryptocurrencies.
Crypto needs Regulation not Ban
The President of Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and General Secretary of Blockchain Industry Coordinating Committee of Nigeria, Senator Ihenyen, in an interview with Punchng said that it was time for the CBN to rethink its position on crypto.
He said, “ I strongly believe that it is time the Central Bank of Nigeria(CBN) rethinks its position on cryptocurrencies in the nation. its no doubt that the CBN must have had compelling reasons for shutting out crypto trading in the country’s banking and financial system in February 2021."
The SIBAN President added "15 months into the CBN crypto ban, all stakeholders, including the bank must taking note of the true facts and figures of crypto adoption along side the risk an opportunities. only 1% of crypto transactions are illicit transactions.
Nigeria will be safer with cryptocurrencies regulated than resisted as innovators believe it is the future of finance, the SIBAN president added.