Bitcoin selling at 36% premium in Nigeria
- Bitcoin hikes to a whopping 36% in Nigerian Crypto Market.
- Ban on Crypto transactions in Nigeria a significant reason for the hike.
- The ban was enacted because the crypto market might be a danger to the nation’s fiat currency.
For 12 days and counting, Nigerian banks have adhered to the CBN’s ban on cryptocurrency transactions. The crypto ban has caused the price of Bitcoin in Nigeria to go haywire. There is no regulation whatsoever on the price as Nigerians still trade Bitcoin via various backdoor opportunities.
All Nigerian banks and other regulated institutions were ordered to halt any operations that have to do with cryptocurrency or face dire penalties. Any account that is found to be making any crypto-related transaction is to be closed down with immediate effect.
Interest in Bitcoin Unwavering
However, the interest of the Nigerian populace in Bitcoin has not wavered. In fact, according to Google Trends, the Nigerian market continues to exceed other countries in the trading of cryptocurrency. More daunting is the fact that a huge 36% premium has been placed on the price of Bitcoin as of February 16.
Bitcoin is sold at the market price of $51,314; it is sold at $71,150 per bitcoin in Nigeria. The premium is unmatched when compared to the highest premium prices globally. The next in line in South Africa, with a tip of 3.24%, a difference of 32.86% to that of Nigeria.
An analysis made by Cointelegraph suggested that the crypto ban’s impact looks like it has done nothing to quench the Nigerian Market’s crypto trading. Transactions are mostly now done on a retail scale. Nigeria has been known to be one of the most hyper-performing nations in the Crypto market according to Blockchain.com and Google Trends.
Reasons for the crackdown
According to a Nigerian Senator, Sani Musa, the fiat currency is being threatened by the very existence of Bitcoin in the Nigerian economy. He claimed that the naira has become almost valueless due to bitcoin’s introduction into the country’s week economy.
Other speculation cited on the internet stated that the crypto ban was because the CBN has been finding it hard to regulate. In the process, it tax any transaction made with cryptocurrency.
