- The tide of cryptocurrency has gained a higher pace in Nigeria in recent times, placing the African continent among one of the most crypto-enquiring countries.
- The important issue that obstructs the facilitation of such crypto-transactions is the lack of bank accounts possessed by the individuals of the country.
- SMS crypto wallets like Cointext can be highlighted as an appropriate example to the same.
The tide of cryptocurrency has gained a higher pace in Nigeria in recent times, placing the African continent among one of the most crypto-enquiring countries, according to recent reports. This leap shall be accounted for as a substantial increase in the economic growth of the country.
However, the individuals belonging to the country have no other go than to use cash as the medium to buy cryptocurrency. The country is reported to have the most number of internet users on the continent. However, their activeness in facilitating cryptocurrency transactions is not as consistent as other countries.
The country’s Bitcoin Community portal lists several broker and trading platforms available in it, which includes Quidax, Luno, Blockvila, Alphabits, and P2P exchanges like Remitano, Localbitcoins, Paxful, Coindirect, Buy Coins, and Coincola. Other options include Cryset, Redimit, Instant gold.
The important issue that obstructs the facilitation of such crypto-transactions is the lack of bank accounts possessed by the individuals of the country. As of now, it is the only traditional channel through which such individuals can participate in such transactions.
According to statistical reports released by the World Bank, only around 40% of Nigerian adults have an account with some financial institution or a mobile money provider. On the other hand, most of the Nigerians receive their income in the form of cash, and a significant amount of people who belong to that group are mobile phone users.
Such a situation provides a fertile platform for the growth of cryptocurrencies, which can be accessed through devices such as the above mentioned mobile phones. SMS crypto wallets like Cointext can be highlighted as an appropriate example to the same.
Services available at the moment
Such a move will also ultimately benefit the financially excluded citizens of Nigeria who can access the same through the introduction of decentralized digital money. As a result of increasing demand, crypto-giants are providing opportunities to buy Bitcoin using liquid cash.
Yellow Card is one of such platforms, which allows the Nigerian citizens to purchase cryptocurrencies through ATM cards using Naira. As of a recent disclosure, the platform currently supports bitcoin core and dash and will be adding bitcoin cash (BCH) and tether (USDT) shortly.
The company is working with the local financial agents of the country to promote such transactions even for those who do not hold bank accounts. In its recent statement, the CBO of Yellow Card Financial, Munachi Ogueke, disclosed their intentions to expand across the country apart from the federal capital of Abuja through the channels of brick and mortar stores.
As a fact, the country has at least one operational Bitcoin ATM to meet the increasing demand for cryptocurrencies in the country. Meanwhile, other platforms are have geared up to satisfy the crypto-demands of the countries younger population.
This includes Blockstale, which has already delivered five ATMs in the country and have devised plans to introduce mobile top-up feature allowing users to reload their prepaid mobile phones using cryptocurrencies.
Alternatives for access to Bitcoin
Though cryptocurrencies become a boon to Nigerians, he lack of accessibility restricts the growth of the same. As an alternative, many platforms have come up with the concept of gift cards, which allows the Nigerians to purchase Bitcoin using the same. Hong Kong-based digital asset trading platform Coincola offers such a service in the country presently.