Nigerians have continued to remain bullish on cryptocurrencies despite a hostile crypto environment by the Central Bank of Nigeria (CBN). According to Paxful, a crypto P2P exchange in the country, the country has traded $1.5 Billion in crypto.
Nigeria remains the largest crypto market in Africa as millions of youths in the country try to leverage digital assets to solve their financial problems.
However, CBN’s regulation stopping banks from providing support for crypto firms and users was a blow that threatened to reduce the size of crypto market in the African country.
Nigeria’s partial crypto ban
The CBN after its supposed ban on cryptos in the country later explained that it is not discouraging people from trading crypto. The CBN said it only prohibits banks and financial institutions from dealing with cryptocurrencies.
It meant that users who directly deposit and withdraw funds from their crypto wallets through their bank can no longer do so.
The ban was a major setback as bank transfers via exchanges was an easy way for Nigerians to access crypto services without getting scammed.
Nigerians, however, were unfazed by this policy as it has led to the market emerging as the biggest peer-to-peer market for Paxful amid the CBN’s prohibition.
The CBN said it placed a partial ban on crypto because digital currencies are used for money laundering and terrorism. The regulator also affirmed a 2017 directive to financial institutions to block cryptocurrency accounts.
How Paxful rescued Nigerians from CBN crypto wrath
After the ban, Nigerians were left with just the P2P option.
Paxful, a global peer-to-peer cryptocurrency trading platform, became one of the most used platforms in the country.
The peer-to-peer platform was able to make Nigeria hit a remarkable trading volume of $1.5 billion with over 1.5 million users, despite the ban.
UsefulTulips, a crypto analytical website notes that Paxful traded over $6.3 million in the last 7 days and over $77.4 million in the last 90 days.
Outside Nigeria, several other major economies are becoming more interested in crypto trading. Paxful recorded impressive trade volumes from countries like China, the United States of America, India, and Kenya.
Globally, the peer-to-peer platform has over six million users with more than $5 billion trades that have been conducted.
Paxful CEO and co-founder, Ray Youssef in an interview with a local Newspaper in Nigeria said the traditional financial system is failing 99 percent of the world’s population, explaining that this means there is no way out of income inequality for a lot of people in the world.
He said crypto is an alternate way and a way to rest the financial system based on equality.