Nigerian Bitcoin Premium Reaches 164% Amid Demonetization

Key Points:

• Due to the impending invalidation of the fiat currency, demand for Bitcoin (BTC) has skyrocketed in Nigeria. Due to this increase in demand, BTC is currently being traded in Nigeria for a premium of up to 163.77%.
• The BTC premium had reached over 36% by February 2021, when the Nigerian central bank forbade financial institutions from offering services to cryptocurrency exchanges.
• In 2022, the central bank of Nigeria will demonetize, rendering the present fiat notes useless. The action was taken to reduce money laundering, inflation, and counterfeiting.

Due to the impending invalidation of the fiat currency, demand for Bitcoin (BTC) has skyrocketed in Nigeria. Due to this increase in demand, BTC is currently being traded in Nigeria for a premium of up to 163.77%.

Peer to peer dealers are currently offering BTC on LocalBitcoins for as much as $62.499. This is 163.77% more expensive than the current BTC price of $23,694.

According to LocalBitcoins, BTC is currently trading at an average price of around $38,000, indicating Nigerians must pay a minimum of a 60% premium due to the rising demand.

BTC trades between $28,000 and $39,300 on Paxful in the nation, denoting premiums ranging from 18.1% to 65.8%.

Due to the impending invalidation of the fiat currency, demand for Bitcoin (BTC) has skyrocketed in Nigeria. Due to this increase in demand, BTC is currently being traded in Nigeria for a premium of up to 163.77%.

The BTC premium had reached over 36% by February 2021, when the Nigerian central bank forbade financial institutions from offering services to cryptocurrency exchanges.

Bitcoin demand in Nigeria?

In 2022, the central bank of Nigeria will demonetize, rendering the present fiat notes useless. The action was taken to reduce money laundering, inflation, and counterfeiting.

Following the declaration of demonetization, banks began limiting the amount of cash that Nigerians could withdraw from ATMs. The nation is also attempting to increase the use of eNaira, the digital money issued by its central bank.

On January 29, the monetary authority extended the deadline for submitting old currency from January 31 to February 10. Nigeria now has a cash shortage as banks work to swap out outdated notes for new ones.

Nigerians can only withdraw about $44 from ATMs each day as of January.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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