More Nigerian Bitcoin traders have resorted to channelling their transactions through cryptocurrencies amidst tight cash liquidity conditions in the country.
Bitcoin price has surged above the average market level by a 60% premium. At the time of writing, the Bitcoin price was about $38,792 (~17.8 million naira) on the Nigerian crypto exchange NairaEx. A significant catalyst for this development is the scarcity of new naira notes, forcing traders to opt for alternatives as the deadline for discarding the old notes approaches. The former deadline for depositing all old notes was moved from January 31 to February 10, as updated on the Central Bank of Nigeria’s (CBN) website. The change was due to the long queues and complaints about the insufficient time.
A countdown on CBN’s website| Source: CBN
The announcement to the public of this exercise was followed by another informing them of the ATM withdrawal limit from N100,000(~$217) to N20,000 (~$43.5) effective from January 23, 2023. According to the CBN, this change is an effort to curb money laundering and inflation in Nigeria.
The Central Bank of Nigeria announced a redesign of higher denomination naira notes on October 26 2022. This is the first time the country’s apex bank would embark on the rebranding exercise in about two decades.
Nigerians continue defying CBN’s anti-crypto stance
Nigeria continues to lead the way among countries with actual use cases for cryptocurrency worldwide despite the central bank’s position. A Coindailypress report revealed that Nigerians have remained resolute on their digital asset adoption despite the government’s inhospitable sentiments towards crypto. The statistics showed that the Sub-Saharan nation emerged as the region with the highest interest in cryptocurrencies. Last year, the CBN banned commercial banks affiliated with crypto-related transactions. This effort contrasts with other activities of other regulatory bodies that have been building regulatory frameworks to support the crypto industry.
Meanwhile, Bitcoin recorded its best in January ten years. The pioneering crypto asset defied many predictions making a 40% increase in the first month of 2023. The recovery was only part of a broader perspective revealing an increase in investors’ risk appetite in the market. This volatility rubbed off on stablecoins as their volume surged, pushing their dominance to new highs.
Do you think Bitcoin will record another surge in the Nigerian market before the end of the new deadline? Let us know your thoughts in the comment section below.
Kingsley is a fintech writer with over 4 years of experience covering blockchain and cryptocurrency news. Alo first discovered Bitcoin in 2016 and has been passionate about it ever since, particularly the various ways blockchain can help Africa and the world at large. He desires to give the crypto space a more geographically balanced narrative and serve as a bridge between Africa and the rest of the world. His articles have been featured in Cointelegraph, Beincrypto, and Forkast.news, among others.
