Nigeria Turns to Crypto Amid Low Confidence in Naira

Nigeria, also known as the "Giant of Africa," has seen its residents acquire more crypto, including Bitcoin (BTC) and stablecoins, as there was a 258% increase in BTC purchases when compared to last week, according to the P2P Bitcoin exchange LocalBitcoins' latest report.

The news arrives after Nigeria’s official currency naira dropped significantly against the US dollar, causing massive concerns amongst Nigerians.

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Likewise, last week, Godwin Emefiele, Governor of the Central Bank of Nigeria, advised the bank’s customers to not withdraw naira and convert it into the dollar, as the bank would take legal action against those who did.

Thus, it seems as though the massive drop and the news from the bank have encouraged Nigerians to take measures into their own hands, as they started buying digital assets as a safety measure.

Aminu Gwadabe, the president of the Association of Bureau de Change Operators of Nigeria (ABCON), shed some light on the situation and mentioned that a significant portion of Nigerians have lost confidence in naira, adding:

"The USD rate on the crypto floor is used in determining the value of the local economy."

Nonetheless, it seems as though Nigeria isn't the only country to experience such a boom in cryptocurrencies. For instance, earlier in July, Martin Guzman, Argentina's Minister of Economy, resigned and caused some panic amongst the locals. Since then, according to some data, Argentines started massively buying Tether (USDT) using Argentinian pesos (ARS).