Nigeria Tops Global Cryptocurrency Adoption, but CBN Ban Still Have Ripple Effect

Nigeria Tops Global Cryptocurrency Adoption, but CBN Ban Still Have Ripple Effect

  • Binance, the largest cryptocurrency exchange company in the world, says Nigeria has the highest adoption rate globally
  • Despite the Central Bank of Nigeria ban on the use of cryptocurrency for transactions within the country, the adoption rate hit 32%
  • Nigeria leads Vietnam, Philippines, Turkey and Peru according to Binance's report of The World Goes Crypto: Top 5 Countries Adopting Crypto and How BUSD Helps

Nigeria leads the world in the adoption of cryptocurrency in 2021, a new crypto industry research report by the largest digital asset platform, Binance, states.

In the Binance report titled, 'The World Goes Crypto: Top 5 Countries Adopting Crypto and How BUSD Helps.' Nigeria was ranked top based on the volume of adoption.

The African country beat the world by 32% adoption rate, with Vietnam, Philippines, Turkey and Peru falling behind with 21%, 20%, 16% and 16% respectively.

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Cryptocurrency adoption in Nigeria is the highest in the world despite CBN ban, but digital currency restriction has ripple effect
Godwin Emefiele, governor of Central Bank of Nigeria (CBN) and illustration of cryptocurrencies. PHILIP OJISUA/AFP (R) and Marc Bruxelle (L)
Source: Getty Images

What Binance report says about Nigeria

The report released on Friday, was based on Statista’s survey on selected countries using cryptocurrency or that owns digital asset since Satoshi Nakamoto first introduce bitcoin in 2009.

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According to Binance, the adoption of cryptocurrency is fueled by the growing culture of sending money and me making payment through the phone among Nigerian youths.

The reports read in part:

“Topping the list is the African nation of almost 200 million people, mainly on the younger, more tech-savvy side.
"With most Nigerians adept at sending money and paying through their phones, almost a third of Nigerians surveyed by Statista have used or owned crypto at some point.”

CBN ban still having a ripple effect

According to Olumide Adesina, a crypto buff with Coindesk, despite Nigeria leading the adoption, the rate is affected by ban on cryptocurrency by the Central Bank of Nigeria (CBN).

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He said the peer-to-peer is driving growth, but the end-use of the crypto mostly benefits persons with offshore accounts, which reduces their exposure to CBN restriction.

Adesina explained that most Nigerian exchanges have relocated, targeting Nigerians from their foreign base, an example being Patricia, which operates from Australia.

Nigerian government to tackle cryptocurrency market with regulatory digital coin

The report of Binance was released a month before the Central Bank of Nigeria (CBN) releases its government-supported digital currency in October this year.

The CBN has severed ties between banks and exchanges, while outlawing unregulated bitcoin and altcoins for payment or store of value within the country.

The Nigerian digital currency is expected to serve as an alternative to the popular cryptocurrencies, but will be regulated by the apex financial institution.


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