Nigeria has continued to experience growth in adoption of cryptocurrency despite its ban, by the country’s apex bank, the Central Bank of Nigeria (CBN). Despite its ban by Nigeria’s central bank, adoption of cryptocurrency has continued to grow in Nigeria, as it ranks 6th leading country in the world in adoption.
According to the Chainalysis’ 2021 Global Crypto Adoption Index, Nigeria ranks 6th in the world in the adoption of cryptocurrency.
Also the global adoption of crypto assets has leaped by over 2,300 per cent since third quarter 2019 with P2P platforms driving crypto currency usage in emerging economies, the data which was published on Wednesday has revealed.
Chainalysis is a blockchain data platform that provides data, software, services, and research to government agencies, cybersecurity, exchanges, financial institutions and insurance companies in over 60 countries.
Part of the report read, “At the end of Q2 2021, that total score stands at 24, suggesting that global adoption has grown by over 2,300 per cent since Q3 2019 and over 881 per cent in the last year.
“Our research suggests that reasons for this increased adoption differ around the world – in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.
“In a year when cryptocurrency prices rose dramatically, each region’s respective reasons to embrace the asset class seem to have proven compelling.”
The evaluation involved 154 countries and is based on: on-chain cryptocurrency value received, on-chain retail value transferred and peer-to-peer exchange trade volume.
The report further read that, “Several countries in emerging markets, including Kenya, Nigeria, Vietnam, and Venezuela, rank high on our index in large part because they have huge transaction volumes on peer-to-peer platforms when adjusted for PPP per capita and internet-using population.
“Our interviews with experts in these countries revealed that many residents use P2P cryptocurrency exchanges as their primary on-ramp into cryptocurrency, often because they don’t have access to centralised exchanges.”
Vietnam, India, and Pakistan were listed as the leaders in cryptocurrency adoption. While Kenya was ranked above Nigeria at number five, the United States and China both featured in eighth and ninth positions respectively.