In its report, ‘Into The Cryptoverse: Decoding The World Of
Crypto Consumers,’ KuCoin, a crypto exchange with over 10 million registered
users, said the crypto population is largely dominated by 18 to 60-year-olds.
It said, “According to Google Trends, Nigeria was recorded
as the country with the highest number of bitcoin searches globally in early
2021, signaling the growing utility of cryptocurrency in the country.
“The data also pointed out that the country’s youth have
been the decisive force behind the surge in bitcoin searches. According to our
survey conducted in early 2022, 33.4 million Nigerians, which accounts for 35
per cent of the population aged 18 to 60, currently own or have traded
cryptocurrencies over the past six months.
“70 per cent of these crypto investors claim that they will
likely increase their cryptocurrency assets soon. Another six per cent of the country’s population are
interested in investing in cryptocurrency in the coming 6 months, suggesting
that the cryptocurrency adoption rate might continue to increase.”
According to the crypto exchange, the depreciation of the
naira over the last six years has fuelled the increase in the number of crypto
users in the nation.
It added, “The Nigerian currency, Naira, has depreciated by
more than 209 per cent in the past six years. Some Nigerians recognised the
financial opportunity brought by Bitcoin early on.
“According to our survey, 37 per cent of crypto investors in
the country began trading cryptocurrencies more than three years ago. At the
same time, 6 per cent started trading cryptocurrencies more than six years ago.
“Meanwhile, as prices continue to rise, with food inflation
reaching its highest point since 2008, the challenging economic climate in
Nigeria remains and has even worsened by COVID-19, making cryptocurrencies
attractive alternative sources of income, particularly in the bullish market in
2021. According to the survey, 26 per cent of crypto investors have begun
trading cryptocurrencies in the last 6 months.”
The firm said the average number of monthly transactions
across African countries showed a 1,386.7 per cent from January 2021 to January
2022.
It added the number of users also increased by 2,467.2 per
cent within the same time period.
According to a report by Chainalysis, a blockchain data
platform, the cryptocurrency market in Nigeria and other African countries grew
by 1200 per cent in 2021.
The firm added that Nigeria is the sixth leading country in
the world in terms of cryptocurrency adoption as a result of its peer-to-peer
monetary systems.
The report said the African region, dominated by Kenya,
Nigeria, South Africa, and Tanzania, has one of the highest grassroots
adoptions of crypto in the world. It added that Africa has the third-fastest
growing cryptocurrency economy in the world.
The International Monetary Fund recently said the adoption
of crypto assets was being driven by emerging markets and developing economies.
It added that countries in this region increased their trading volumes in
crypto exchanges in 2021.
In February of 2021, the CBN put a restriction on
cryptocurrency transactions in the nation. It had said, “Further to earlier
regulatory directives on the subject, the bank hereby wishes to remind
regulated institutions that dealing with cryptocurrencies or facilitating
payments for cryptocurrency exchanges is prohibited.”
Recently, the CBN fined three Deposit Money Banks N800m fine
for violating its regulations barring customers from transacting in
cryptocurrencies.
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