After the Central Bank of Nigeria [CBN] directed the financial institutions from restricting services for businesses involved in cryptocurrencies, users turned to the peer-to-peer mode of transfers. Since February, the country was witnessing a rising volume of P2P transfers and it can be visible in the chart below.
Nigeria’s P2P bitcoin trade volume hit over $38 million in June 2021 which was the second-highest peak visible in the country’s P2P history. The volume of P2P trading in the country hit above $35 million twice now. This suggested the rising interest of users in P2P payments given the crackdown by the government.
In February, when the central bank’s norms came into effect, many exchanges were hit as the trading volume declined. Users were increasingly making use of the peer-to-peer services which was also taking roots in other countries where regulatory clarity still lacked, like India.
A Nigerian Bitcoin user said in a report:
“There’s no stopping crypto, [it’s] the future and we won’t let some old fools take our future from us. We’re Nigerians. Using the crypto is a way out of poverty for the youth.”
The second-most popular region for P2P activity, Kenya recorded volumes drop from $16.5 million in May to $13.4 million. This was the first time there was a descent in the volume reported by the country.
As per the chart above, Nigeria was leading with a volume of $8.34 million, as per the last recorded data on 27th June. Meanwhile, Ghana took over the second position with a $2.58 million trading volume.
The outright ban by the government may hurt the sentiment in the market, but has clearly not hindered users’ wish to delve into crypto. Many users within Nigeria saw the ban from the country as an opportunity for crypto to advance in the country.