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Bitcoin (btc) has seen an exponential increase in demand in Nigeria as the central bank of the country encourages the population to move to digital treasury. Consequently, the price of bitcoin has risen considerably above the levels of the global market.
The cost of one Bitcoin on Nigeria’s Crypto exchange NairaEx is currently trading at around 17.6 million Naira, Nigeria’s currency, equivalent to $38,200 U.S. dollars. This represents a nearly 60% increase over the current price of Bitcoin of $23,150 at this time of writing.
Nigeria Paris about Bitcoin and the adoption of digital assets.
The Bitcoin pump in this cryptocurrency exchange from Nigeria comes after the country's central bank has started to limit cash withdrawals at the counter (OTC) by individuals and businesses weekly.
This policy allows Nigerians to withdraw only up to a maximum of 20,000 naira (ngn), with a value of approximately $43, distributors in the country on a daily basis, and up to 100,000 ngn, worth $217.
The letter published in December 2022, in which the Central Bank of Nigeria redesigned its policy regarding cash withdrawal limit, has resulted in a premium being added to the price of Bitcoin in the African country.
This measure allegedly aims to eliminate money laundering and reduce inflation in the African country, which in Nigeria's latest inflation rate report stood at 21.34% in December 2022. A slight decrease from its high of 21.47%.
The Nigerian Central Bank also gave Nigerians until 24 January to exchange their older, higher-value notes for the new currency. It caused public unrest; people said it was too short, which resulted in an extension.
Longstanding relationship between Nigeria and crypto assets.
Nigeria's Central Bank has come a long way with digital currency adoption. In 2021, the central bank issued a circular to all financial institutions to discontinue the provision of services to crypto central offices. He also requested that the accounts of individuals and businesses that actively use cryptocurrencies and trade in digital assets be closed.
A few months later, Nigeria expected to pass legislation recognizing Bitcoin and digital assets as capital for investment. This industry has generated a great deal of interest and alternatives to diversify capital and offer solutions to economic problems in various countries.
This law was implemented after the central bank of the country did not introduce a digital central bank (cbdc). This digital asset, known as e-Nav, was badly accepted and adopted by the public last year, with a 0.5% adoption rate.
Nigeria has also been in discussions with Binance, the world's leading crypto exchange, to develop an economic zone to support crypto and blockchain enterprises in the region.
Bitcoin started a correction from the moment of the press, down by 4.6% in the past 24 hours. And a 0.1% decrease in global markets over the last 7 days. Investors expect tomorrow's Federal Committee on the Free Market (FOMC) meeting to impact prices.
