The state of crypto in Nigeria

The crypto scene in Nigeria is very weird right nos. While the interest in crypto hasn't waned over the past few years, the government has become even more aggressive in its fight to halt trading activities.

Crypto in Nigeria is inevitable. If citizens of more evolved economic systems complain about the store of value of the local currency, imagine how it would be for Nigerians with the Naira slumping like a meme coin getting dumped after its hype.

Most Nigerians only have Naira because they don't have a choice or they don't know any other way. When I was in Nigeria, for example, every single Naira I had was for spending and the rest of my assets were in crypto. I lived on the edge.

The point is, there's no incentive to hold Naira and if you're not a pseudo-patriotic lapdog for the government, you'd admit the same. It is a very normal reaction for humans to seek shelter in times of danger and crypto just happens to be that safe haven.

Bitcoin is very popular in Nigeria but for the more risk-averse, USDT, HBD and similar stable coins have proven to be the go-to asset. Over the years, the number of USDT wallets in Nigeria have risen and with even more crypto education in the country, the number is certainly going to increase.

Naira vs Dollar

So, according to numerous outlets and utterances from regulators in Nigeria, Naira trading pairs on Binance has been a major reason for the currency's travails.

Binance, in particular, was targeted by the government's assault due to being the most popular crypto exchange in Nigeria. So, as a result of the recent antagonistic moves by the government, Binance folded and decided to de-list and completely end any connection with the Naira.

Binance are already in a lot of trouble with regulators in pretty much every country they operate in. The last thing the exchange wants is more heat from yet another government.

The Nigerian government threw some hard words towards the exchange. Saying things like threatening sovereignty and all those buzz words politicians use to garner favour from the western world.

So, if you're in Nigeria, you can still use Binance, but it'll only be on a a crypto-crypto basis. There's no direct route to onboard people with the local currency but if they have crypto, they can use Binance trading services like everyone else.

I know what you're thinking, did it work? Has the Naira recovered or showed any signs of recovery? Don't lie, you know the answer.

First of all, Binance was just a distraction. People need an enemy and if there's one thing this government excels at, it is propaganda.

Naira is still in free fall and most people in the country are helplessly living in a pseudo-democratic nightmare. However, the crypto enthusiasts will continue to thrive.

We are crypto

One thing about countries like Nigeria where the citizens are constantly pushed to the edge is that we always find new ways to stay on our feet. So, when you take something away, all it does is force people to create an alternative.

In the past, you could simply move Naira in and out of exchanges. However, when that was halted, everyone embraced peer to peer transactions and that's the backbone of the Nigerian crypto community.

Ever since banks were instructed to end interactions with crypto related entities, people have decided to create backdoors by simply being their own exchanges. We embody the trustless attribute of crypto and facilitate transactions directly through bank transfers.

Numerous exchanges have sprung up with the sole purpose of facilitating peer to peer transactions. These are non-holding institutions that only act as middle men and take a very tiny commission for their service.

Traders are vetted by the platforms but for the most part, you're at the mercy of the other party. It is risky business but when you're living on the edge, risky business is all you know.

Posted Using InLeo Alpha