Nigeria: Leader in Bitcoin Interest Level
Date: 2024-06-03 Author: Gabriel Deangelo Categories: IN WORLD
Nigeria has taken first place in the world in terms of the number of Bitcoin-related search queries. This happened despite tightening government oversight of the cryptocurrency sector. This article will look at the reasons for this interest, as well as the regulatory and economic conditions affecting the cryptocurrency market in the country.
Leading Position in the World Ranking
According to Google Trends, Nigeria ranked first in the number of searches for "bitcoin". The country has even surpassed El Salvador, where Bitcoin is recognized as an official means of payment. Nigeria received the maximum 100 points, while El Salvador scored 97 points. The top five also included Ethiopia, Switzerland and Brazil. Ukraine, for comparison, is in 53rd place.
Impact of Tighter Regulation
Since the beginning of 2024, Nigerian authorities have significantly tightened oversight of the cryptocurrency sector. This may be one of the reasons why interest in Bitcoin is so high in the country. In October 2021, Nigeria became the first country in Africa to launch its own central bank digital currency (CBDC), eNaira. However, the project did not live up to expectations, and a year later the eNaira adoption rate was only 0.5%.
Interest in Bitcoin against the Backdrop of Tough Politics
Despite government pressure, local interest in cryptoassets remains high. In February 2022, the government banned banks from servicing crypto companies, and in February 2024, it was reported that they were planning to completely block crypto exchanges. It was part of efforts to stabilize the national currency, which authorities say has been undermined by the peer-to-peer sector fueled by cryptocurrency platforms.
New Regulatory Measures
In March 2024, the local regulator published new guidelines for virtual asset service providers. These recommendations included increasing the registration fee by 400% and requiring the CEO of a company planning to operate legally in Nigeria to reside in the country.
Impact on Fintech Firms and Crypto Exchanges
In May 2024, it became known that fintech firms began to block client accounts for transactions with crypto assets. At the same time, one of the largest crypto exchanges, Binance, faced regulatory pressure, and two of its top managers were taken into custody.
Nigeria, which has become a leader in the level of interest in Bitcoin, provides a unique example of how high interest in cryptocurrencies can coexist with a strict regulatory environment. In the face of increasingly stringent regulatory measures, the country's population continues to show significant interest in crypto assets, which reflects the depth and complexity of the interaction between economic, social and regulatory factors in this area.
