“Cryptocurrencies like Bitcoin Make Global Trade Easy” – Founder of Nigerian Crypto Exchange – Interview Bitcoin News
Despite the February 5, 2021 Central Bank of Nigeria (CBN) directive instructing banks to block crypto entities from the financial system, the demand and use of cryptocurrencies has continued to grow. Not even the central bank’s subsequent crackdown on crypto entities it accused of defying the directive has succeeded in stifling demand for cryptocurrencies.
Africans need ‘access to the world of cryptocurrency’
In contrast, Nigerians seem to have shunned the CBN’s digital currency – the e-naira. Despite the central bank’s efforts to present the e-naira as an alternative to cryptocurrencies, local residents apparently still prefer the latter. According to Benjamin Eseoghene, the founder and CEO of a local crypto exchange, residents’ reluctance to use the e-naira could be linked to the CBN’s inability to fully sensitize the masses about it.
Eseoghene, whose company Roqqu.com recently received approval to operate in Europe, told Bitcoin.com News that Nigerian residents prefer cryptocurrencies because they are borderless. Meanwhile, Nigeria’s continued shortage of foreign currency, as well as the local currency’s decline, are other factors pushing Nigerian residents towards cryptocurrencies.
Nigeria’s population of over 200 million people means that the country is one of the world’s largest crypto markets, and this naturally attracts global crypto giants. However, the presence of such large companies has not deterred local entrepreneurs like Eseoghene. In his written responses to questions from Bitcoin.com News, Eseoghene explained how his company, which was founded in 2018, is able to compete against some of its well-funded rivals. He also gave his thoughts on the e-naira and the CBN’s directive.
Below are Eseoghene’s answers to the questions.
Bitcoin.com News (BCN): You operate one of Nigeria’s locally established crypto exchanges that compete with resourceful global platforms for what is essentially one of the world’s largest crypto markets. Can you start by telling our readers the reasons that led you to launch Roqqu in 2019 and why it has held its own against its much larger rivals?
Benjamin Eseoghene (BE): We are a brand building the future of Africa using blockchain technology. Starting from the days of small beginnings, we have evolved into a team of 60+ with a leading product with over 1.4 million+ users in the African blockchain space.
We are everyone’s best bet as the fastest and safest way to buy, sell, store and accept cryptocurrencies. We know our users want more than just a trading platform, we know our customers want to build businesses, grow their brands and gain financial freedom; this constantly inspires us to continue to improve our services, while striving to offer more flexible features on our platform … We build with the best technology available because we make it a duty to see that not only everyone your activities on the app are seamless, you can trust the security of all your assets in our wallets.
BCN: Can non-Nigerians use or trade cryptocurrencies on your platform?
BE: Currently no, but we are working around the clock to enable Roqqu to be used in other parts of the world.
BCN: Roqqu.com is said to have recently received a license or approval to operate in a European country. Is this true, and if so, can you tell our readers why you have chosen this path?
BE: It’s true, many of our users have asked us to make Roqqu available to their friends and family members who live and study abroad. As you already know, many businesses around the world do business directly with Africa and receiving payment is a big problem in Africa, what better way than to use the crypto vehicle to solve the fundamental problem, that’s why we have used many months working to make Roqqu globally available.
BCN: In February 2021, the Central Bank of Nigeria (CBN) instructed banks to essentially cut crypto entities from the banking system. How did this affect your business and how did you overcome the challenges brought by this directive?
BE: The love letter of heartbreak from CBN in 2021 was a lot for the brand to handle as it had a big impact on the product and the crypto industry in general.
Let’s face it: Nigerians are very interested in cryptocurrencies. The country’s cryptocurrency trade has grown astronomically in recent years. Nigeria is the largest cryptocurrency market in Africa, with the second highest volume of bitcoin trades globally, after the United States. According to data from QZ Africa, $400 million worth of cryptocurrencies were exchanged in the nation last year. Nigerians were also the most likely to admit to using or owning cryptocurrencies in a recent Statista Global Consumer Survey study of 74 countries.
However, to overcome the directives, we changed our operations by implementing the very first P2P model on our platform to connect traders directly in an effort to reduce the effects. P2P trades are often carried out directly between parties, without the use of intermediaries or third parties. Using this solution, we act as escrow for these P2P transactions. It’s simple, easier and safer with Roqqu.
BCN: While the CBN has generally discouraged the use of cryptocurrencies such as bitcoin, it has tried to convince Nigerians to use its central bank digital currency (CBDC). However, the opposite seems to be true, Nigerians seem to prefer cryptocurrencies over the e-naira. What do you think could be the reason for this?
BE: Cryptocurrencies like bitcoin are borderless, they make global trade easy and feasible, but CBDC comes with limitations, so it makes sense that people would still gravitate towards the borderless option. I think another reason why people oppose CBDC is that there hasn’t been an adoption campaign, there hasn’t been widespread sensitization on why people should use CBDC, how to acquire it, how to store it, the usage and everything which concerns it.
People can be resistant to change, especially when they don’t see that change as necessary.
BCN: A Nigerian presidential aspirant has reportedly praised fintechs while another has praised the blockchain and its potential. What is your reaction to such positive comments about the technology from national leaders?
It’s great to see them open up to the possibilities of blockchain and technology as a whole. If there’s one thing I’ve learned in all my years in the industry, it’s that it’s much easier to thrive and succeed when the authorities are on your side.
If they turn these positive comments into actual work to support the tech ecosystem, there is a 100% chance that growth will skyrocket. I am certain of this because I believe that, first, some existing policies that stifle the activities of tech companies will be revised, and founders will not spend so much time trying to innovate around policies. Instead, they would spend that time innovating to compete in global markets. There is so much we still have to do in the field of technology, and having a government that believes in the future of technology will be all we need.
BCN: Does this in any way point to a possible shift in Nigeria’s policy towards the crypto industry?
BE: We believe it does. It is obvious that they see everything or at least a glimpse of what can arise from cryptocurrency and the blockchain industry at large, so it only makes sense that they would improve the already existing policies or perhaps even create new ones that will promote the growth and spread of cryptocurrency in the country.
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