After the Central Bank of Nigeria released a circular instructing the banks to play no role in crypto trading and investing, there has been a frenzy on social media.
While enthusiasts and traders largely condemned the actions of the CBN, most are assured that the new directive will not impede crypto activity in the country. Veteran traders took to twitter and other social media platforms to dispel any form of panic among holders and other traders.
Interestingly, after the circular was released, bitcoin peer-to-peer trading increased dramatically in the country. Nigeria already holds a top spot in the world, when it comes to crypto adoption. Bitcoin has become a viable alternative to the country’s weakening Naira.
Barely a week after the directive by the Central Bank, Usefultips revealed that peer-to-peer lending of bitcoin, surged by 15%.
Nigeria leads Africa by a whopping $7.5 million in peer-to-peer lending. Kenya, which was closest, came in second at $2.86 million while South Africa comes in third with a transactional peer-to-peer value of $2.38 million.
Nigeria’s population, which is dominated by tech savvy youths, has proved that the new CBN directive will not deter crypto usage in the country. The news seems to have sparked a wave of interest in crypto usage and trading.
Alternatives To Fiat Deposit And Withdrawal
Moments after the CBN directive made rounds in the news, exchanges disabled fiat deposits and withdrawals of naira. This made buying directly from exchanges and withdrawing crypto equivalents into naira bank accounts impossible.
While some expressed their fears over the new development, some simply decided to turn to peer-to-peer. Those who needed to turn crypto into fiat simply sold to those who needed to turn fiat into crypto.
This method however, makes newbie crypto users and traders susceptible to crypto scams. In light of this susceptibility, some exchanges have provided services that protect users and make peer-to-peer easier.
PaxFul P2P Marketplace
When it comes to peer-to-peer trade in Africa, Paxful is at the forefront. The exchange overtook LocalBitcoins in June last year to become the biggest peer-to-peer marketplace in the world.
A quarter of Paxful’s users are made up of Nigerians, they also constitute the company’s second largest bitcoin market.
As the biggest peer-to-peer trading platform in the world, it is certain that Paxful will have no troubles catering to customers who have to turn to p2p following CBN’s new directive.
Binance P2P Escrow Service
While peer-to-peer trading might seem like a simple alternative to bank deposits and withdrawal of crypto, parties involved in the exchange might not always hold up their end of the deal.
Binance’s escrow service reduces the risk associated with peer-to-peer transactions. An escrow service ensures fair trade between two parties. It ensures that both parties are adequately compensated after a trade has been made. An escrow is a trusted third party that holds on to funds until the buyer and seller are satisfied with the transaction.
In Binance’s escrow service, once the buyer places an order, the seller’s cryptocurrency is automatically deposited into the escrow wallet. The crypto will be sent to the buyer once the transaction has been completed.
The escrow service follows clear and easy steps. Once an order has been placed, buyer and seller will begin to communicate. The buyer proceeds to pay once an agreement has been made. Seeing the payment confirmation, the seller releases the crypto to the buyer
In cases where either party acts unfairly, the escrow service withholds the crypto and sends it to the rightful owner after enough investigation. Buyers are implored to have screenshots of their conversations with sellers, including payment receipts.
BuyCoins NGNT Token
Stablecoins are cryptocurrencies without the volatility of cryptocurrencies. This is because they’re pegged to the value of a particular fiat cryptocurrency. A stablecoin pegged to the dollar will have the same value as the dollar.
NGNT is a stablecoin pegged to the naira. Consequently, one NGNT equals 1 naira. NGNT extends the advantages of blockchain and digital currencies to the naira. It is fully collateralized by USDC, the leading dollar stable coin.
NGNT was created by BuyCoins Africa. Announced in Q1 of 2020, the coin is now supported by Paxful, BuyCoins and Busha.
NGNT avails traders of the need of using digital fiat to purchase cryptocurrencies, they also escape the volatility associated with converting fiat to cryptocurrencies, as the NGNT is pegged to the naira.
Bundle’s First Mobile Peer-to-peer
Binance-backed crypto exchange, Bundle, is looking to build the first mobile peer-to-peer platform.
Yele Badamosi, Bundle CEO, revealed on Twitter, that the exchange is “working with partners to integrate our alternative channels to fund and withdraw from your cash wallets…
We will work on creating a mobile-first Peer-to-Peer (P2P) platform that will allow you to swap assets with other Bundlers quickly, securely, and simply.”The mobile peer-to-peer will be a remarkable innovation in the crypto space. Positive results are imminent if Bundle integrates the platform.
With a policy highly intolerant of scams, crypto users new to p2p can carry out all transactions with peace of mind.
Nigeria is constantly proving that cryptocurrencies and blockchain is in fact made for Africa. With levels of transactions recorded in the country amid the apex bank’s ban, it’s safe to say there’s nothing that can stop crypto adoption in Africa.