It’s okay if there are slight nuances in an asset price across different exchanges and locations but not when it becomes so unbearable. On Sunday, the price of Bitcoin reached its all-time high of $58,300. In that same timeframe, the price of Bitcoin in Malaysia, India, Singapore were $53,047, 51,133, and $49,727 respectively.
But in Nigeria, the price of Bitcoin stood at an outrageous fee of $86,000. Different reasons could have been responsible for this price differences across these regions. Most times, the major cause of this imbalance is usually between market pressure and government policies.
While we can all agree that the value of digital assets across countries could vary because of the differences between USD and the local currency, but these differences should not be as much as what we have in Nigeria presently. This is even if the Bitcoin price variances were as a result of the selling and buying pressure.
According to the 2020 index of economic freedom, Nigeria ranks low on the table for investment and financial freedom. One key factor that contributed to this low ranking is the tough government regulations that is also playing out in the crypto sector of the country.
Why is Bitcoin Price High in Nigeria?
The central bank of Nigeria recently banned all financial institutions, especially banks, from providing their services for crypto related transactions in the country. It also ordered banks to shut down all accounts trading crypto while threatening to sanctions institutions that do not comply with this regulation. This could be the major reason why there is a 70% premium on Bitcoin price in comparison to what could be found in the rest of the world.
#Bitcoin Price is now $80,000 in Nigeria – a 60% premium.
That’s what happens when you try to ban something people want.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) February 18, 2021
Notably, Nigeria is the only country in the world with a premium that high. A tweet from Bitcoin Archive claims that the rise in Bitcoin price can be tied to the ban on BTC by the apex bank. General sentiments also reveal that there is a high demand for the asset in the country, especially among the youths.