In the wake of the recent ban on banks’ servicing of crypto exchanges in Nigeria, Bitcoin’s price in the country has seemingly spun out of control.
February 17, 2021 | AtoZ Markets – About 12 days have passed since the Central Bank of Nigeria banned financial institutions from providing services to crypto exchanges.
Bitcoin buys and sells at a premium price of 36% in Nigeria
Following this controversial move, interest in Bitcoin in Nigeria has increased, according to the latest available data from Google Trends. Even more stark is the hefty 36% premium on Bitcoin’s price compared to the average value in other countries.
Bitcoin spot prices were $51,314 as of February 16, but were $71,150 in Nigeria.
Bitcoin prices may have a premium depending on the country, but it is 3.24% in South Africa and 1% to 3% in Argentina, Peru, Malaysia, and Vietnam, which is not comparable to the level in Nigeria.
Nigeria is one of the leading African countries in the distribution of cryptocurrencies. According to market data compiled by CoinDance, 60,215 bitcoins have been sold in Nigeria over the past five years.
Nigeria’s SEC recognized cryptocurrencies in September 2020 and planned to create a regulatory sandbox for digital currencies. As AtoZ Markets reported, the sandbox program for cryptocurrency companies has currently been suspended.
The cryptocurrency community has expressed dissatisfaction with this decision. A wave of protests swept across social media. Many are now switching to P2P platforms to buy bitcoins.
Discussion of the circular reached the Senate plenary session on February 11, and senators were divided. While some progressive politicians demanded a more detailed approach to cryptocurrency, senator Sani Musa argued that Bitcoin poses a major threat to the country’s currency, the naira.
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