Across the world, cryptocurrency adoption has been growing. Even after the market crash of last year that saw prices tumble, the crypto industry has shown signs of life and is currently on a road to recovery.
In Nigeria, this trend hasn’t changed. Cryptocurrency transactions are on the rise, and with the economy currently facing several crises, this trend is expected to continue. So, what lies ahead for crypto transactions in the country?
Nigerians Turn To Crypto Amid Economic Challenges
Despite the many hardships that have befallen crypto in the past year or so, Nigerians’ appetite for these assets remains strong as ever.
According to a recent report from Chainalysis, crypto adoption in the country grew by 9% year-on-year between July 2022 and June 2023, amounting to $56.7 billion in trading volumes.
Chainalysis revealed that the major cause of this rise was due to Nigeria’s continued economic challenges. Here are some highlights:
- Annual inflation rose to 25.8% in August, marking the highest point in 18 years.
- Just as well, Nigeria’s Naira has fallen by 32.61% against the Dollar – and we’re just in September.
As a result of this, more Nigerians have particularly looked for ways to move their earnings from the Naira, choosing instead to earn in Dollars. And, crypto provides the perfect way to do that. With services like Quidax’s Dollar Savings feature, investors can easily convert their funds to Dollars and earn returns – while also protecting their funds from inflation.
A Young, Tech-Savvy Population
Another major reason why adoption has risen so much has been Nigeria’s youthful, resilient, and tech-savvy population.
- Currently, Nigeria’s median age is 18. This makes the country one of the youngest populations in Africa.
- Many young Nigerians have embraced crypto’s innovation as a means of financial inclusion and empowerment.
- Just as well, many of these people see crypto as a way to invest, earn a living and build wealth.
Thanks to exchanges like Quidax, these young people can conveniently buy, sell, and trade cryptocurrencies from the comfort of their smartphones, thus easily accessing the global financial ecosystem without the need for any centralized parties or banks.
Crypto Adoption: The Road Ahead
The common saying in crypto is that “It’s still Day One.” And despite the progress that’s been made in the market, there’s still much to be done.
In a country with over 210 million people, crypto holds a lot of potential for growth. And, there are several areas where this growth can be better optimized.
Infrastructure Development:
A major strategy for improving crypto adoption in Nigeria is through infrastructure development. Currently, there is a huge need to improve infrastructure for long-term market sustainability. Quidax and other exchanges have continued to champion this cause, but we need more work to help build the right solutions that cater to the needs of Nigerians.
Education and Awareness:
There is also a significant need for public awareness campaigns and educational programs that ensure Nigerians have the right knowledge to make informed decisions about crypto.
The Quidax Academy course is a great example, providing newbie investors with the knowledge they need to start their crypto journey and benefit from the market. With educational campaigns like these, investors have a lower risk of falling for scams and fraud.
Progressive Collaboration:
Finally, there’s a considerable need for collaboration between financial institutions, the government, and key players in the crypto industry. These partnerships can lead to innovative solutions that address Nigerians’ economic challenges, while also ensuring compliance with laws and regulations.
Conclusion
Crypto adoption in Nigeria has shown tremendous promise and potential. However, it is at a critical juncture where the right decisions and actions will determine its future trajectory. With clear regulations, a focus on financial inclusion, infrastructure development, and education, Nigeria can continue to lead the way in crypto adoption on the African continent, paving the road ahead for a more inclusive and prosperous digital economy.
