Many people are actively wondering what it will take for Bitcoin adoption to reach critical mass over the coming years. Over in Nigeria, Bitcoin interest is growing on a daily basis, as the oil bust is dragging this emerging market down. Trillions of USD in untapped crude oil is not all that appealing with the low prices, forcing consumers and enterprises to look for alternative solutions.
Crude Oil Crisis is Positive for Bitcoin in Nigeria
For a country once labeled as the emerging market of Africa, things are looking rather grim in Nigeria. A reduction in oil revenue results into the US Dollar becoming very scarce in the country. Moreover, the Nigerian government is hoarding foreign currency to ensure they keep some reserve at all times, in the hopes of averting a financial crisis.
As a result of this volatile situation, both consumers and businesses in Nigeria are feeling the brunt of this financial turmoil. In fact, the country’s economic growth has decreased by over 50% in just one year, which is not a promising sign. Keeping in mind how there are over 187 million people living in the country, financial issues is the last thing that economy needs.
This turnaround comes at a time when Nigeria was on the cusp of becoming on the world’s 20 largest economies. After noting several years of economic growth – at an average of 7% per annum – things were looking quite positive for the region. But things have started to slip ever since the beginning of 2015, and there seems to be no improvement in sight.
Due to the scarcity of US Dollars in Nigeria, factories are no longer to import the parts. Unfortunately for most people, the US Dollar dictates the world economy, and limited access to that type of currency throws a monkey wrench in the business side of things. A new global currency solution needs to be found, and even though the Nigerian government is considering a yuan-denominated bond, an alternative is not that hard to find.
It comes as no surprise to find out Bitcoin is gaining more interest in the country as of late. The digital currency ecosystem works beyond the borders of traditional finance and governments, and can be exchanged for any fiat currency in the world. In a way, this gives consumers and businesses in the region access to US Dollars, without relying on traditional finance.
Moreover, the country has several Bitcoin exchanges for users to buy or sell digital currency. NairaEx was launched recently, and Ice3X has been active in Nigeria for quite some time now. Additionally, there is also a booming LocalBitcoins market, which will go a long way in boosting Bitcoin interest in the region.
Source: The Australian
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