Cryptocurrency trading has continued to thrive in Nigeria despite the ban imposed by its Central Bank. The Central Bank Of Nigeria had earlier issued a circular warning financial institutions against enabling bitcoin transactions. The digital asset currently trades 52% above the global price in Nigeria.
Statistics show that bitcoin is currently trading at a 52 percent premium in Nigeria. The premium is as seen on the leading cryptocurrency platform, Luno. While the global price stands north of $52,000, the digital currency is currently trading above $78,000 in Nigeria. It also appears to be increasing exponentially. About two days ago, it was just 36% above the global market price.
The price gap is far-flung from the other countries on the list. Venezuela ranks second with just a 3.5 percent difference. Argentina, Chile, and Malaysia make up the top five with less than 3 percent increase each (all at the time of writing).
The price difference in Nigeria is indicative of the increased peer-to-peer trading activity.
P2P trading is fully taking center stage in Nigeria after its Central Bank ordered financial institutions to close accounts involved in cryptocurrency trading. The apex bank also warned banks and other financial institutions to desist from facilitating cryptocurrency-related transactions. Banks discontinued their affiliations with crypto exchanges, while other fintech companies within the country halted related services in compliance with the circular.
The ban, however, has done little to nothing to impede the growth of the world’s second-largest P2P cryptocurrency market. Volumes on peer-to-peer trading platforms are soaring. Industry giants are also devising means to cater to the booming Nigerian market.
Binance recently rolled out new services to enable compliant bitcoin trading in the country. It features the introduction of a new trading pair (NGN/NGN Fiat) and Express mode. The Express mode will permit traders who complete the KYC to exchange Nigerian Naira (NGN) for cryptocurrencies. Trading with the new currency pair will also incur zero transaction cost.
Other exchanges may emulate this by introducing similar services to encourage continued bitcoin trading in the country. To Nigeria’s youthful population, bitcoin is more than just a digital asset. It played major role at the End SARS nationwide protest last year. After the Central Bank froze accounts of activists receiving donations, they started receiving bitcoin instead.
It is therefore not surprising that they are not giving up on bitcoin, despite the Central Bank’s ban.