In Nigeria, each bitcoin costs more than $98,000, and its price continues to rise uncontrolled. While this could be the dream of many bitcoiners, the reality is that it has become a nightmare for Nigerian traders.
All this is the product of a government-imposed measure prohibiting the marketing of digital assets.
It's a financial blunder that has led to Bitcoin being 56% more expensive than the average value worldwide. While bitcoin has barely exceeded $57,000 in most countries worldwide, the price in Nigeria continues to rise to $100,000 dollars.
Before the ban on trading cryptocurrencies imposed by the Central Bank of Nigeria, the exchanges held cash in banks and had a steady stream of deposits." Before, there was a single source of liquidity," says The CEO of Naijacrypto Chiagozie Iwu, and therefore there was always cash to exchange bitcoins, and the price was stable.
Will The Nigerian Government Reverse Their Decision?
Iwu believes that there is a possibility that the Nigerian government will revoke the decree against cryptocurrencies in the future and allow trading again. However, this option is hard to believe when we consider that the state narrative is that Bitcoin is a threat to the economy.
Recently Nigerian Senator Mohammed Musa accused Bitcoin of turning the national currency into an "almost useless" asset. A speech that reinforces the idea that it is better that Bitcoin does not circulate within the country.
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Author: Adam Lee
Asia News Desk
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