Nigeria nearly traded $400 million worth of bitcoin in the first half of 2022, according to the most recent data from peer-to-peer cryptocurrency exchange Paxful.
Together with the $760 million in trading volumes projected in 2021, this makes the West African country the cryptocurrency exchange’s largest market worldwide.
Peer-to-peer (P2P) bitcoin trading in Nigeria is expanding at a time when authorities are cracking down on financial institutions that are disobeying the Central Bank of Nigeria’s (CBN) order from February 5, 2021.
Banks and other regulated financial organizations are forbidden by the directive from supporting transactions using crypto entities.
According to Paxful, the rise in P2P volumes in Africa is due to a widespread lack of access to financial services on the continent, which has led more people to turn to bitcoin. Paxful stated:
“P2P finance offers a chance for financial inclusion in a market like Africa, where many individuals are unbanked and financial institutions are not as easily accessible.
Nigeria, which has a 33% unemployment rate, a nation of 38 million adults without access to banking, a young, enterprising community (more than 75% of its population is under 35), and economic uncertainty, such as volatility in the Naira, have all contributed to the country’s explosive adoption of Bitcoin.”
Although Nigeria is Paxful’s largest market globally, Kenya is currently the second-largest market in Africa and the fifth-largest market worldwide, with P2P volumes of more than $200 million in 2021 and $125 million in the first quarter of 2022. In addition, Paxful stated that it “anticipates a trade volume rise of 25% in Kenya for 2022.”
In response to the substantial rise observed in Ghana and Kenya, Paxful stated:
African customers are sending money abroad more frequently as time goes on. In 2021, the number of users sending money abroad on Paxful increased by more than 115% in Ghana and approximately 140% in Kenya. Ghana saw a yearly increase in trade volume of 95% in 2021.
Paxful applauded the Central African Republic’s (CAR) decision to become the first African nation to recognize bitcoin as legal cash and expressed hope that the nation would use “bitcoin to make monetary policy to drive its economy forward.” The cryptocurrency exchange, however, said that it had “nothing noteworthy” to say about the volumes of the CAR.
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