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Banking Infrastructure, Central Bank of Nigeria, Centralized Exchange, Cryptocurrency, Endsars, Exchange Rate, Foreign Exchange, KYC, Netflix, Telegram, Tomiwa Lasebikan, uycoins Africa
A former Microsoft software engineer and co-founder of Buycoins Africa Tomiwa Lasebikan said that some Nigerian expatriates now use Bitcoin when sending remittances to circumvent the country’s overvalued exchange rate.
According to Rasebican, the Central Bank of Nigeria (CBN) has a fixed exchange rate of 1:380, and every time they withdraw money, they will grab 20-30% of the recipient’s remittance. According to Abokifx, at the time of writing, the parallel exchange rate of one dollar to naira is 1:480.
Similarly, importers who are bound by the country’s strict foreign exchange regulations now resort to Bitcoin when making payments online or across borders. In an interview, Rasebican said that Bitcoin also provides Nigerian residents with an opportunity to purchase services or utilities that CBN usually considers unnecessary. He said:
Another thing for people who want to access foreign resources is… you want to pay for Apple Music’s Nexflix. The government is actively curbing everything.
The software engineer explained that prior to this year’s Endsars protests, Nigerian authorities “did not realize the huge potential of Bitcoin”. During the lock-up period, the use of cryptocurrency in Nigeria has grown, and the country is now listed as one of the top cryptocurrency markets. The cryptocurrency world events in the past twelve months may help change the Nigerian government’s view of cryptocurrencies.
Therefore, as Lasebikan acknowledged, officials may now want to take action to slow the adoption of digital currencies by Nigerians. According to Lasebikan, the authorities can achieve this goal by simplifying centralized encrypted transactions, enforcing stricter KYC, or expelling crypto companies from traditional banking infrastructure.
However, as Lasebikan explained, this “will not kill Bitcoin or the value of Bitcoin” because “most crypto activities occur in informal channels.” He said that any restrictions will not lead to the passage of Whatsapp Or the peer-to-peer transaction initiated by the Telegram social media chat group dropped.
Bitcoin transactions are censorship-resistant, and Nigerian authorities cannot stop or cancel transactions. Being aware of this and other attributes of Bitcoin means that CBN and others will not succeed in controlling digital currencies. For encryption users, knowing this is reassuring, which helps maintain or accelerate the momentum of adoption.
Do you agree with Lasebikan about the great power of Bitcoin in Nigeria? Share your thoughts in the comments section below.
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