Former Microsoft software engineer and Buycoins Africa co-founder Tomiwa Lasebikan says some Nigerian expatriates are now using bitcoin to bypass the country’s overvalued exchange rate when sending payments.
According to Lasebikan, a fixed exchange rate of the Central Bank of Nigeria (CBN) of $ 1: 380 robs recipients of 20-30% of their transfer value each time they recover money. At the time of writing, the one dollar collateral exchange rate for the Naira is 1: 480, according to Abokifx.
Similarly, importers hampered by the country’s rigid foreign exchange regulations, are now turning to bitcoin when making payments online or across borders. Speaking in an interview, Lasebikan says that bitcoin has also given Nigerian residents the opportunity to pay for services or utilities that the CBN usually deems unnecessary. He says:
Another thing would be for people who want to access resources outside the country … You want to pay for Nexflix, Apple Music. All the things the government is up against are aggression.
The software engineer explains that, prior to this year’s events such as the Endsars protests, the Nigerian authorities “had forgotten the tremendous potential of bitcoin.” During the closing period, the use of cryptocurrency grew in Nigeria and the country is now considered one of the best cryptocurrency markets. Events in the crypto world in the last twelve months that may have helped change the Nigerian government’s perception of cryptocurrencies.
As a result, as Lasebikan recognizes, officials may now want to take action to slow the adoption of Nigerians from receiving digital funding. According to Lasebikan, one simple way that authorities can achieve this is by addressing centralized crypto exchanges, enforcing more rigorous KYCs or driving crypto companies out of traditional banking infrastructure.
Still, as Lasebikan explains, this will not “kill bitcoin or bitcoin’s value” because “the majority of crypto activities take place in informal channels.” He says no conflicts will result in the dropping of peer-to-peer trading initiated through Whatsapp or Telegram social media chat groups.
Bitcoin trading resists censorship and there is no way for Nigerian authorities to suspend or reverse transactions. Awareness of this and other attributes of bitcoin means that the CBN and others will not succeed in any attempt to control the digital currency. For crypto users, knowing about this is encouraging and helps maintain or accelerate adoption momentum.
Do you agree with Lasebikan about the tremendous power of bitcoin in Nigeria? Share your thoughts in the comments section below.
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