A new study revealed that crypto adoption has increased dramatically in Nigeria due to limited access to fiat-based financial services available in Africa.
KuCoin’s “Into the Cryptoverse Report”, a crypto exchange, highlights the fact that many Nigerians have begun to use cryptocurrencies as an alternative to traditional ways of storing and transferring assets.
The report shows that 35% of Nigeria’s population, or 33.4million people, have traded or owned cryptocurrencies in the past six months. Nearly 17.36 million people (or 52% Nigerian crypto investors), have allocated more than half of their assets for cryptocurrencies.
Investors around the world are seeking to diversify their traditional assets into cryptocurrency to combat rising fiat inflation. A survey of investors in the United Kingdom found that tokens are safer and more secure than traditional investments like gold, oil, stocks, or real estate.
KuCoin’s report also highlights peer-to–peer trading as the best way for Nigerian investors convert fiat to crypto assets. The crypto adoption rate will be slowed down by approximately 23.38million Nigerians (or 70%) who will increase their cryptocurrency investments in the next six months.
The value of Nigeria’s fiat currency, the naira has dropped by more than 209% over the past six years. This is a key reason local investors should be looking at deflationary assets like Bitcoin (BTC) as a potential driver.
According to the report, while the majority of Nigerian crypto investors started their journey years ago, 26% invested in cryptocurrencies six months ago — due to the 2021 bull market, when BTC prices briefly crossed the $69,000 mark.
Nigeria’s President Muhammadu Buhari launched the eNaira, the nation’s digital currency. Many governments around the world plan to use CBDCs for digitized fiat substitution, primarily to reduce operational costs and accelerate cross-border payments.
The eNaira CBDC is the most advanced, scoring 95 points out of 100 in both the wholesale and retail categories in PwC’s recent “2022 Global CBDC Index”.
Similar: Three key regions see nearly two-thirds of new crypto owners in 2021: Report
A study by cryptocurrency exchange Gemini revealed that crypto investors worldwide are expected to grow significantly in 2021.
Cointelegraph reported that India, Brazil, and Hong Kong saw the greatest crypto adoption. More than half of respondents acknowledged investing in cryptocurrency.
Country ownership of cryptocurrency. Source: Gemini
Gemini’s report found that Brazil and Indonesia are the top two countries in terms of the number of cryptocurrency investors.
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