Cryptocurrency and blockchain development in Nigeria
Cryptocurrency is gaining traction in Nigeria. A 2014 survey from Citibank revealed the country to be one of the world's largest Bitcoin users. A 2016 report by Spanish bank Santander noted that Nigeria is home to one of the largest bitcoin communities in Africa. Yet, with no explicit regulation on cryptocurrencies, it's a surprising market for digital currency, considering its thriving economy and highly developed banking sector.
On a larger scale, cryptocurrency development is still in its infancy in Africa, but some things are optimistic. The continent has existing cryptocurrency exchanges in South Africa and Kenya; blockchain startups have launched. For example, BitPesa uses blockchain technology to transfer payments between African countries using cryptocurrencies.
While this might make investment opportunities appealing, potential investors should be cautious due to the lack of protection currently afforded by Nigerian regulators, especially since experts believe that regulations will become more formalized over time as digital currencies gain popularity. It seems like only a matter of time before more explicit protections are put into place for buyers and sellers (and investors) dealing with cryptocurrencies in Nigeria.
Nigeria is the most populous country in Africa. It has a population of over 190 million people. The country also has an estimated GDP of $397 billion, making it one of Africa's largest economies. Nigeria's GDP is derived mainly from services, oil, and agriculture.
The Nigerian government has mainly been non-committal on cryptocurrency. The government hasn't said much about blockchain technology and cryptocurrency. The Nigerian government is not rushing to regulate cryptocurrencies, as it does not have a clear position or stance on cryptocurrencies technology yet.
Back when the Central Bank of Nigeria first issued a warning about cryptocurrencies in 2017, it didn't seem like there would be any further action taken against them by the government for quite some time. The Central Bank of Nigeria's governor, Godwin Emefiele, stated that "the CBN will not accept cryptocurrency as part of its reserves portfolio" and would "not encourage Nigerians to use virtual currency for transactions." However, Emefiele also stated that "we will only support payment systems we can understand and regulate," implying that he wasn't against the idea in principle, just as opposed to allowing anyone to use crypto in an unregulated manner.
Since then, nothing has been done by the Nigerian government regarding cryptocurrency regulation or restriction — no guidelines have been set up or enforcement taken on any trading activities going on in Nigeria through digital assets like bitcoin or Ethereum.
Luno: The most popular option at the moment, Luno, is an exchange that has been around for quite a while now. The platform was formerly known as BitX and is currently licensed by the United Kingdom's Financial Conduct Authority (FCA). In addition to Nigeria, it operates in Indonesia, Malaysia, South Africa, and Singapore. It supports bitcoin, Ethereum, and litecoin trading. Luno allows you to deposit funds into your account via local banks in Nigeria or bank wire transfer.
bikcoin Africa offers an easy-to-use platform that makes buying and selling bitcoins simple for anyone involved in the Nigerian market. They have partnered with global payment platforms such as Paystack so that users can make payments directly from their local bank accounts when purchasing cryptocurrency tokens on their site. Their low fees also attract many new users who want to buy bitcoin without it costing too much money out of pocket before getting used to how cryptocurrency works.*
Lastly, Quidax is another Nigerian-based cryptocurrency exchange that allows anybody anywhere in the world to buy Bitcoin through a user-friendly interface using only their debit card information. These exchanges are safe since they follow strict guidelines set by the Central Bank of Nigeria, ensuring that nobody gets scammed when using them.
These days, finding good cryptocurrency jobs is like finding the proverbial needle in a haystack—but that's where Nigeria comes in. Although there aren't any established crypto exchanges and relatively few startups dedicated to blockchain development, Nigeria has a solid talent pool of developers who can make this niche industry flourish. And when you're on the ground floor of any new field, it's essential to start from scratch with a fresh perspective and exercise patience toward the long process of developing something new and innovative.
In a country full of young people eager for success, getting your foot in the door in Lagos can be as simple as enrolling in a programming class at one of many formal tech universities. Or you could try taking your particular skills online through freelance work or even going out into the streets and asking some people if they need their website fixed or their social media platform upgraded. Some Nigerians don't tend to use these terms much; they're more likely to say things like "tech guy" or "security guy."
It's been years since Nigeria issued its first cryptocurrency ban in January 2017. When the country's central bank issued this directive, it marked a significant milestone for cryptocurrencies in Africa. In an interview with CNN, Omolola Arowolo, an economic analyst in Lagos, explained that Nigerians are interested in new investment opportunities and often look overseas to places such as Dubai and South Africa to find them. She said they are willing to take risks and are early adopters of technology.
But not everyone agrees that Nigerians should be banned from trading cryptocurrencies. In an article for Nairametrics titled "Why banning bitcoin is bad for the economy," Jide Idris argues that Nigeria has banned cryptocurrency transactions because "regulators have failed to understand it fully enough to regulate it effectively."
Cryptocurrencies are emerging financial instruments that are new to Nigerians. However, some key players are already encouraging its adoption by the public. Although crypto and blockchain technology is primarily new to Nigerians, it has been around since 2009, when Bitcoin was first mined. Since then, many other cryptocurrencies have launched into the market to become more profitable for investors than Bitcoin
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