A report from Citigroup, a US investment firm, revealed that Nigerians were the third largest holders of bitcoin as a significant percentage of gross domestic product (GDP). The use of this digital currency in Nigeria ranges from trading to making fast, low-cost cross-border financial transactions, thereby saving on the high fees taken by traditional money-transfer services and commercial banks.
Nigeria shows up with one of the fastest growing and promising economies in Africa. In addition, the country has a dynamic and fast-growing young population that is rapidly embracing technological innovations. We can as well say that Nigeria has a significant chunk below the age of 35. Despite their popularity, there is still a small number of people with access to the financial system. You’ll be surprise to learn that in a population of over 180 million, less than 50 million people do have bank accounts talk less of those interested in ever creating a bank account.
With this in mind, we think that the blockchain applications could be a great and innovative way to onboard millions of underserved people into the financial system or atmosphere where they can as well benefit from the advancing technology. And it is without doubt that these people are more likely to embrace the block chain technology due to its simplicity and cost-effectiveness. Remember that unlike traditional banking systems, the innovation brought by digital currencies is one that frees you from overspending in the name of transactional fees.
Crypto to go mainstream in Nigeria
Up-to-date, no cryptocurrency businesses have been prohibited in Nigeria and there is no official legislation concerning them. However, the Security and Exchange Commission (SEC) is expected to implement regulatory systems for digital currencies in Nigeria by ending 2019 and beginning 2020. As a result of this, we can foresee more security of Nigeria’s biggest crypto companies. And it is without doubt that this will lead to a more secure crypto trading ecosystem which will overcome challenges like the refusal of crypto by most local businesses.
In addition to this, for us to have a mass adoption of crypto in Nigeria, emphasis has to be put on financial education. Nigerians have to understand the dangers that come with overprinting money and inflation. That’s why we can say without doubt that the more people who understand how money works, the more crypto users will arise from Nigeria. Also Read Nigeria’s Capital Market’s Regulator striving hard to create a solid framework for cryptocurrency regulation.