Cryptocurrency may not have been received as warmly in areas of Africa as it has in Europe, Australia and Canada, but the continent and cryptocurrency go together like macaroni and cheese. This is because African countries already have a culture of sending and receiving money via apps. Not to forget that large parts of Africa remain unbanked and cryptocurrency is a way of overcoming these issues.
Some governments and central banks are trying their best to hold bitcoin at arm’s length. For example, Kenyan banks are not allowed to issue bank accounts to any individual also known to be using bitcoin. It is often left to individuals rather than full territories to make the decision to use bitcoin and add it to their financial arsenal – which is what a lot of Nigerians are now doing.
Expect a rise in the use of popular bitcoin products in Nigeria over the coming years, such as popular exchanges and Luno’s Bitcoin wallet, which has a strong market share in Africa.
Nigeria and Growing Poverty
Nigeria is in the middle of a crisis in the number of people living in poverty. Around half of Nigerians are living off less than $2 dollars per day and there are now more Nigerians living in poverty that there are in India. Nigerians living and working abroad can tap into the bitcoin world to send payments quicker and cheaper to families suffering back home, even ones without a bank account.
But that isn’t the biggest way that bitcoin can help Nigerians. It can help overcome issues with their native fiat currency with much more positive consequences.
Bitcoin Volatility – Not So Volatile?
Bitcoin has a lot to offer people in Africa and around the world, but that doesn’t escape the fact that it is regarded a highly volatile asset. In December of 2017 it was worth around $20,000 and at the time of writing it is worth almost one-quarter of that.
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However, bitcoin is only volatile compared to more stable fiat currencies such as the pound sterling, the euro and the US/AS dollars. Other currencies around the world are just as volatile, and in the case of Nigeria, their native Naira has been proven to be more volatile than bitcoin.
What this means for poverty-stricken Nigerians as well as business owners of Lagos is that they can use bitcoin to escape uncertainty and inflation. Bitcoin becomes a way to continue living a life as stable as possible – as well as protect current wealth.
The Future of Bitcoin in Nigeria
There are opportunities for bitcoin to help scores of Nigerians, wherever they are on the local socioeconomic scale.
The potential and possibilities may depend on a number of factors, including but not limited to the volatility of the Naira, local regulations and other political events. Nevertheless, opportunities are present today.
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