.Africa is well known as a hub of all crypto activity on the continent. The reasons are quite simple – general poverty that is a crushing social factor across the continent and in specific countries like Nigeria. Despite being rich with resources and progressive enough in terms of infrastructure and technological availability, Nigeria is still in a dire economic state. The local economy has been mercilessly battered by the pandemic and the constant terrorist attacks that ravage the oil-rich fields of the country’s coast have pummeled the country’s economy and incomes. The central bank has often found it impossible to maintain the dominant status of the local fiat currency – the naira – leading to its unstoppable depreciation.
Having lost over 200% in value in under seven years, the naira is at the bottom of the financial food chain in Nigeria, leaving the local population with no choice but to see alternative means of value preservation and transacting. Luckily, the cryptocurrency market came to the rescue and Nigerians are now able to make purchases using Bitcoin and other, more accessible, cryptocurrencies. Tron, Ethereum and even Dogecoin are the norm in local shops despite attempts by the local central bank to introduce a digitized version of the naira.
Buying cryptocurrencies in Nigeria is not a problem, considering the abundance of local exchanges and their connectivity to the global financial system. More importantly, average Nigerians who have never before had any experience of working with the blockchain, or simply do not know the underlying technological concept of it, routinely purchase cryptocurrencies using one-click gateways.
MoonPay Nigeria is one of the platforms catering to the needs of the local population by providing a simple and convenient gateway for all things crypto-related. By relying on this gateway, Nigerians can exchange their naira for Bitcoin or any other cryptocurrency in a breeze just by entering into a simple and straightforward Peer-to-Peer transaction.
The Peer-to-Peer approach is extremely handy for locals who are distrustful of authorities. By engaging in a transaction with a real person who can be negotiated with, Nigerians exchange their available assets for cryptocurrencies on terms that are acceptable for both parties. Many exchanges in Nigeria provide Peer-to-Peer venues, acting as mediators and third parties guaranteeing the success and fairness of the operations. Some exchanges even offer escrow services to ensure the further transparency of the operation and to act as a safety cushion for newcomers into the market. This additional measure serves the purpose of adding an extra layer of confidence in the cryptocurrency market.
The market for cryptocurrencies in Nigeria is booming, since the local population has become disillusioned with the prospect of ever seeing its national currency rebound in price. The result is the rapid onboarding of cryptocurrencies as a means of payment at local shops and for cross-border transactions. Many exchanges operating on the Nigerian market offer convenient fiat on-ramps, allowing locals to comfortably exchange their seemingly worthless naira for Bitcoin and other crypto assets.