Bitcoin BTC/USD demand in Nigeria keeps rising due to its great economic instability, as well as the implications of government monetary policies and the introduction of a central bank digital currency.
The Central Bank of Nigeria has been promoting a digital, cashless economy and introduced the eNaira, Nigeria's central bank's digital currency (CBDC). So far, adoption rates have been poor. Less than 0.5% of the population reported using the eNaira as of its inception on Oct. 25, 2021.
To further promote the shift to a cashless society, the Central Bank of Nigeria has tightened limits on ATM cash withdrawals, restricting individuals and businesses to withdrawing no more than $45 (20,000 Nigerian nairas) each day and $225 (100,000 nairas) every week from ATMs.
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Additionally, there is a weekly withdrawal cap for both people and businesses of $225 (100,000 nairas) and $1,125 (500,000 nairas), respectively. Any funds taken out in excess of those restrictions would incur a 5% fee for individuals and a 10% cost for businesses. The daily cap for cash withdrawals from point-of-sale terminals is also $45 (20,000 nairas).
As the government withdraws all circulating fiat currency from the market, the demand for a free, decentralized currency like Bitcoin has surged. This led to an inflation of its price, which caused an exponential increase in Bitcoin trades. At the time of writing, a single Bitcoin is worth an extraordinary 16.2 million naira ($35,000 USD) on the Nigerian crypto exchange, NairaEX. That's a massive 62% premium over the current global market price of Bitcoin, around $21,600.
Copy Trading & Bots
Nigeria's interest in copy trading and trading bots is on the rise too, and the country is leading the charge in the adoption of these innovative financial technologies, according to a report by Tradingbrowser.com.
With an impressive 800% and 1900% increase in Google searches for copy trading compared to the U.K. and the U.S., respectively, Nigeria's interest in trading bots and copy trading is showing no signs of slowing down. The report also found that mobile trading is a preferred method among Nigerians, with "copy trading app" being a top search term.
This growing trend towards innovative financial technologies is likely due to high levels of mobile phone usage, increasing fintech adoption, and as a means of navigating the uncertain economic climate.
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Disclaimer: This content has been edited using AI tools and was reviewed and published by Benzinga editors
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