The youth in Nigeria is eyeing Bitcoin as an alternative to the weak economic condition in the country. The rising trend for cryptocurrency has made Nigeria one of the largest hotspots in the world.
Last year, Jack Dorsey, CEO of Twitter, made a visit to the region and has encouraged the entrepreneurs to find new tech ways to deal with the struggling economy. “Africa will define the future,” said Dorsey last year.
In the region, there are various shortcomings when we count from the economic context. First, the fiat currency is weak because the economic condition of the government is not competitive and healthy. Second, people find it very difficult and expensive to send and receive money across the borders.
The peer-to-peer trading volume of Bitcoin has submitted a record growth as LocalBitcoins and Paxful have witnessed an outstanding P2P trading volume. Africa is at the top of the list in terms of high Bitcoin searches based on the data of Google Trends.
Akin Sawyerr, a famous crypto investor, claims the flagship cryptocurrency is “a necessity as opposed to a luxury or this cool thing that you could use.” “For a lot of people, it’s basically a lifeline to keep their businesses going,” Sawyerr said.
For transactions across the borders, the residents of Nigeria are turning to Bitcoin as the state currency has a weak position while there is a less reserve of the US dollar. Amos Samson, manager at Sirocco Pay for Nigeria, said,” Nigeria’s weakening Naira currency, as well as the shortage of US dollars, are forcing businesses to switch to Bitcoin as the means of settling payments for international transactions.”
The businesses running in the country need foreign currencies, such as dollars, for raw materials or necessary entities but the local banks are unable to meet their demands which have created a chaos-like position in the region.
According to a local financial publication agency, there are running various programs which are educating businesses’ holders about the world leading digital currency. There are very positive results of this education as various companies are turning to Bitcoin for operations.
Moreover, the firms are looking at Bitcoin as a perfect hedge for their funds. “With devaluation and recession causing Naira depreciation, individuals and even businesses are looking to hedge the value of their funds using a good investment tool,” Paxful regional director, Nena Nwachukwu, stated.