TheCable

Coinbase, one of the biggest cryptocurrency exchanges in the world, says Nigerians are using cryptocurrencies to buy goods from China — despite the ban in the country.

In February 2021, the Central Bank of Nigeria (CBN) issued a circular to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

Despite the ban, Nigerians have been using peer-to-peer crypto networks to trade cryptocurrencies, driving some of the biggest adoptions in the world.

In its most recent crypto newsletter, Coinbase said Nigerians were using the alternative currency to import goods from China.

“Digital currencies have become many Nigerians’ on-ramp to the global economy, despite government efforts to restrict crypto,” Coinbase said.

“Some Nigerians are using crypto to import goods — from China, for example — that can then be resold domestically. And Nigeria isn’t alone.

“Throughout sub-Saharan Africa, more than $80 million in bitcoin was sent via peer-to-peer exchanges in the last month, roughly as much as was transferred in North America.”

The crypto exchange said this matters because “developing economies lead the world in crypto adoption, requiring governments to come to terms with its existence”.

“India, which was reportedly planning a crypto ban earlier this year, is now working on a regulatory structure.

“Both Nigeria and India are planning to launch Central Bank Digital Currency pilot programs soon (CBDCs are state-issued money, unlike BTC, which is decentralized), joining at least 81 countries around the globe, from China to Sweden.”

Nigeria has been ranked sixth on a list of top 20 countries globally with the highest grassroots crypto adoption.