Aug 04, 2021 06:00:00

Why is virtual currency becoming more popular in Nigeria, where trading is supposed to be prohibited?

Large amounts of cryptocurrencies are being traded in

Nigeria , despite the central bank banning cryptocurrencies in banks in the country. The foreign newspaper The Guardian explains why virtual currency is becoming so popular that Nigeria boasts one of the highest transaction volumes in the world.

Out of control and rising: why bitcoin has Nigeria's government in a panic | Cryptocurrencies | The Guardian
https://www.theguardian.com/technology/2021/jul/31/out-of-control-and-rising-why-bitcoin-has-nigerias-government-in-a-panic

In February 2021, the Central Bank of Nigeria ordered all domestic banks to prohibit trading in cryptocurrencies. It identified individuals conducting cryptocurrencies on the bank's platform, required them to close their accounts, and warned that non-compliance would 'face severe regulatory sanctions.' Furthermore, in July 2021, it announced preliminary plans for a new government-controlled digital currency in an attempt to control cryptocurrency transactions.

However, despite bank regulations, Nigerians are conducting P2P transactions, and the amount of virtual currency transactions in the country is increasing. According to research firm Chainalysis, the total amount of virtual currency received by Nigerian users in May 2021 was worth approximately $2.4 billion (approximately 262 billion yen), compared to $684 million (approximately 75 billion yen) in December 2020. yen) has increased significantly. Nigeria is ranked 8th in the world for virtual currency remittances exceeding $100,000 (approximately 11 million yen), which shows the popularity of virtual currency.

Nigeria is one of the countries with the youngest average age in the world, and many people are turning to digital currency to escape poverty. Furthermore, during the largest

protests in decades against police brutality that occurred in July 2020, the government cracked down on the economy by freezing the bank accounts of private organizations and individuals without warning. A feminist coalition made up of women has started donating money using Bitcoin. Twitter's CEO Jack Dorsey also shared this and ultimately succeeded in raising funds worth $150,000 (about 16.4 million yen). In addition, in June 2021, Nigerian President Muhammadu Buhari suspended Twitter operations in the country indefinitely, citing doubts about Twitter's operations, citing CEO Dorsey's promotion of Bitcoin, which is restricted in the country. We took measures to stop it.
Twitter's operations in Nigeria will be suspended indefinitely, and the Nigerian government is flooded with criticism from inside and outside the country - GIGAZINE

Adewunmi Emolwa, founder of Gatefield, a public policy media group that has supported journalists covering the protests in Nigeria, said, ``The sight of young people easily circumventing government restrictions and openly criticizing them shows that they are under control.'' It has shocked many people, and that shock continues throughout the country.' It is said that many Nigerians who trade in virtual currencies maintain horizontal connections through highly secure messaging apps such as Telegram and WhatsApp . It has also been pointed out that there is a risk of being scammed.

The evaluation of cryptocurrencies within the Nigerian government is mixed, with Vice President Yemi Osinbajo criticizing the central bank for deciding to ban cryptocurrencies, saying, ``Instead of banning cryptocurrencies, we should create a strong regulatory system based on knowledge.'' 'You should,' he said.

A key figure in a social organization told The Guardian: 'Cryptocurrency is an important insurance policy against hostile intervention. We had some securities held in cryptocurrencies, so when a freeze on our bank accounts happened, our staff We were able to pay salaries to The operator of a Nigerian virtual currency trading platform said, ``It seems that the government has recognized the reality that virtual currency cannot be effectively stopped.''