Bitcoin (CRYPTO: BTC) demand in Nigeria continues to rise due to the great economic instability, as well as the implications of the government’s monetary policy and the introduction of a digital central bank currency.
The Central Bank of Nigeria has promoted a digital, cashless economy and introduced eNaira, Nigeria’s central bank digital currency (CBDC). So far, adoption rates have been poor. Less than 0.5% of the population reported using eNaira at launch on October 25, 2021.
To further promote the transition to a cashless society, the Central Bank of Nigeria has tightened ATM withdrawal limits, restricting individuals and businesses from withdrawing more than $45 (20,000 Nigerian naira) every day and $225 (100,000 naira) every week from ATMs .
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In addition, there is a weekly withdrawal cap for both individuals and businesses of $225 (100,000 naira) and $1,125 (500,000 naira) respectively. Any funds withdrawn beyond these restrictions will incur a 5% charge for individuals and a 10% charge for businesses. The daily rate for cash withdrawals from point-of-sale terminals is also $45 (20,000 naira).
As the government pulls all circulating fiat currency from the market, demand for a free, decentralized currency like Bitcoin has increased. This led to an inflation of the price, which caused an exponential increase in Bitcoin trades. At the time of writing, a single Bitcoin is worth an extraordinary 16.2 million naira ($35,000 USD) on the Nigerian crypto exchange, NairaEX. That’s a massive 62% premium over the current global market price of Bitcoin, around $21,600.
Copy Trading & Bots
Nigeria’s interest in copy trading and trading robots is also growing, and the country is leading the way in the adoption of these innovative financial technologies, according to a report by Tradingbrowser.com.
With an impressive 800% and 1900% increase in Google searches for counterfeiting compared to the UK and US respectively, Nigeria’s interest in bots and counterfeiting shows no sign of abating. The report also found that mobile trading is a preferred method among Nigerians, with “copy trading app” a popular search term.
This growing trend towards innovative financial technologies is likely due to high levels of mobile phone usage, increasing fintech adoption and as a means to navigate the uncertain economic climate.
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Disclaimer: This content has been edited using AI tools and was reviewed and published by Benzinga editors
