Early this month the Central Bank of Nigeria banned all activities of cryptocurrency traders in Nigeria, we’re now seeing a gradual trend of Bitcoin trading at a premium in Nigeria. While Bitcoin is up at 79% year-to-date, in Nigeria, the value is going upward daily.
The ban on CRYPTOCURRENCY exchanges has seen an increase in the acceptance of Bitcoin in Nigeria.
Nigeria is ranked as one of the leading player of Bitcoin in Africa and all over the world, what the ban has done is to put a premium on Bitcoin prices.
Nigeria’s CRYPTOCURRENCY trading volume on Paxful.
As at Wednesday, Bitcoin was trading at a 36% premium in Nigeria. In simple terms, while Bitcoin is valued at $51,000, in Nigeria, that value is around $71,000.
Regarding the price different, the Naijacrypto CEO says these reflect the cost of getting the naira currency to exchanges. This increased cost, in turn, eliminates any arbitrage opportunities that might exist as a result of the price differences. However, Iwu does concede that for users with “better access” these arbitrage opportunities are real and can be exploited.
Bitcoin prices on a Nigerian cryptoexchange
Nigeria’s Bitcoin premium is also one of the highest globally by a large difference; in South Africa, the premium is 3.2% while countries like Malaysia and Argentina have premiums of about 1%. What it shows is that Nigeria now has an established cryptocurrency culture and there’s little or none a CBN policy can do to change the surge.
Today one bitcoin is N19,760,801.09
In Nigeria, what we’re seeing is that the exchanges are working around government regulation with peer-to-peer trading options. It is in line with the thinking that bans do not work; instead bans make the black market stronger and only making the price to surge upward beyond predictions.