Peer-to-Peer Trading Volume in Nigeria Rises 27% After Crypto Ban

Data retrieved from Usefultulips shows that the usage of Bitcoin's peer to peer trading in Nigeria surged by 27% since the CBN crypto ban took effect about  90 days ago.

April 23, 2021 | AtoZ Markets Three months after the central bank of Nigeria (CBN) banned banks from servicing cryptocurrency-related companies, the volume of p2p transactions in the country has increased by 27%.

According to the UsefulTulips (a Bitcoin analytic data provider) over the past 90 days on p2p platforms Paxful and LocalBitcoins, residents of the country have sold almost $103 million worth of cryptocurrency. Three months ago, this amount was $80.6 million.

Read also: Nigeria SEC Suspends Crypto Regulatory Plans Amid Central Bank Ban

Similar increases are seen in Ghana and Kenya.

Paxful confirmed that all peer-to-peer services are showing growth amid the regulator's prohibitive cryptocurrency policy.

“Strict capital outflow controls, high transaction costs for international transfers and a $ 100 minimum transaction limit for card payments on international sites are some of the factors contributing to the popularity of cryptocurrency in Nigeria,” added Paxful.

Among other reasons for the interest in digital assets, analysts point to financial instability in Nigeria and unemployment at 33%.

Recall that in early February, CBN banned commercial financial institutions from providing services to cryptocurrency exchanges and companies working with digital assets. The regulator explained this by the need to protect the local economy from risks.

Later, the Nigerian Senate suggested that the Central Bank regulate the industry, not restrict it.

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