According to a survey by crypto exchange KuCoin, Nigerians are entering the crypto world due to a lack of inexpensive financial services and high inflation rates, with 35% of them doing so in the previous six months.
Cryptocurrencies, according to KuCoin, are filling a need in the traditional currency-based system because Nigerians are utilizing them to store and transfer assets. According to the survey, 33.4 million Nigerians, or 35% of the population aged 18 to 60, presently hold or have traded cryptocurrencies in the last six months.
Peer-to-peer (P2P) is a popular method among Nigerians, with 65% of crypto investors using P2P platforms to deposit fiat money into cryptocurrencies. Furthermore, 52% of Nigerian crypto investors have put half of their money into digital currency.
According to KuCoin, 70% of Nigerian crypto investors want to expand their cryptocurrency investments in the next six months, indicating that digital asset usage is rising.
The national currency, the Naira, has depreciated by more than 209% in the previous six years due to high inflation rates on Nigerian soil.
According to the survey, women investors in Nigeria have not been left behind on the crypto bandwagon, as they are equal to their male counterparts at 50%.
Nigeria has made a name for itself in the crypto world since being the first African country to launch a central bank digital currency (CBDC) last year.
This digital money, dubbed the “eNaira,” aims to push the boundaries of the payments system, making financial transactions more frictionless and convenient.
This CBDC would also be Nigeria’s only digital currency that is legal tender, accepted alongside real cash, and accompanied by an official mobile wallet application.