The use of cryptocurrency in promoting economic development

Nigeria’s information and communication sector (digital economy) grew by 15.09 percent in real terms in the second quarter of 2020, compared to 9.99 percent growth in the first quarter of 2020 and 9.01 percent growth in the second quarter of 2019, despite the disruption caused by the pandemic to the financial markets.

In the first quarter of 2020, Bitfxt, a fast-growing Nigerian crypto-trading firm, obtained $15 million in Series A financing to support the development of its operations, which resulted in the creation of new employment and investments in an economy that was in desperate need of financial infusions.

Consumers may purchase and trade cryptocurrency using the Lagos-based cryptocurrency firm.

Such a broad view demonstrates how quickly Nigerians are adopting crypto technology, which, in turn, is improving the country’s economy.

In an exclusive interview with Nairametrics, Otatade Happy, a Paxful Peer, discussed how the current crypto development might help to further strengthen the Nigerian economy, namely in the areas of payments and transactional processing.

It is well-known that sending money from Nigeria to other nations is a laborious task, but with cryptocurrency, payments can be performed instantaneously without the difficulties of standing in line at a bank. I may also receive money from overseas without experiencing any difficulties. The cost of transferring cryptocurrency from one wallet to another is quite low. As a result, many individuals in Nigeria are embracing cryptocurrency, and the elder generation may eventually come around to accepting it.”

Unsurprisingly, a substantial number of young Nigerians have begun to use cryptocurrencies

in an effort to avoid the myriad difficulties associated with conventional money transfer services, such as exorbitant charges and sluggish transfer speeds, amongst other things. cryptocurrencies

In Nigeria’s economy, the crypto evolution is already printing successful startups. According to reports, a Nigerian cryptocurrency exchange startup, Yellow Card, has raised $1.5 million in seed capital from the popular American venture capital firm, Andreessen Horowitz, and a fast-growing crypto hedge fund, Polychain – in order to expand its reach across Africa’s thriving crypto market.

Raymond Asogwa, an Ambassador for Paxful as well as a power dealer, talked on the competitive advantage that cryptocurrency provides to the Nigerian industry.

“Crypto has opened up a plethora of chances and created a new niche for the Nigerian labor market to take advantage of.” The exposure to blockchain technology has resulted in a boom in the Nigerian IT sector.”

When writing an explanatory note for the Nairametrics website, Ekene Ojieh, Head of Public Relations and Corporate Strategy at Buffalo Chase – a crypto analytic organization – shared important insights into how some Nigerians are using bitcoin to protect their money.

“Bitcoin is used not just as a store of value in Nigeria, but also as an investment vehicle. Bitcoin has gained more than 28 percent in value over the previous 30 days. Because of its accessibility, anybody may send and receive bitcoin from anywhere in the globe, as opposed to obtaining US dollars for international transactions, which is not possible with bitcoin. It’s important to remember that bitcoin is still a very volatile asset. In addition, the advantage of doing so is that one may earn a considerable amount of money in a short period of time,” – remarked Ojieh.

The Feminist Coalition, a Nigerian women’s rights organization, has exploited the power of cryptocurrency to press for police changes during the #EndSARS rallies in the country.

To accept cash and give necessary financial assistance for protestors in cities like as Lagos, Abuja, and Port Harcourt, among other places, the organization turned to cryptocurrency technology. It also utilized cryptocurrency technology to pay for the medical costs of some wounded demonstrators.

Due to an apparent ban on the organisation’s transactions by the Central Bank of Nigeria, the group has limited itself to only receiving Bitcoin contributions – which it does via BTC Pay – as of late (CBN). BTC Pay is a free, secure, decentralized, and censorship-resistant platform that allows users to send and receive bitcoins.

Bottomline

In Nigeria, a substantial number of individuals and businesses are swiftly embracing cryptocurrency, which is perhaps the most disruptive technology to have ever been developed. As a result, the rising use of cryptocurrency is helping to propel Nigeria’s economic development at a time when the COVID-19 outbreak is having a negative impact on the country’s primary export earning commodity — crude oil.

In a recent proposal, the Nigerian Securities and Exchange Commission (SEC) suggested new regulations to regulate cryptocurrency tokens and cryptocurrency coin investments, where the nature of the investment qualifies it as a financial instrument within the jurisdiction of the SEC. This serves to underline the significance of cryptocurrency to the Nigerian economy.

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