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Nigeria, two others are strongholds for cryptocurrency- Analyst

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Nigeria, South Africa and Kenya have been identified as top markets for cryptocurrency.

An analyst at Quantum Economics Olumide Adesina said that young Africans in these countries had begun to enjoy returns on their investments.

Adesina spoke on Tuesday on News Central TV’s programme titled “Business Edge.”

He said, “The crypto market is gaining a stronghold in South Africa, Kenya and Nigeria in particular. This can be linked to the dollar exposure and ease of investment. A lot of Africans are already seeing returns on investment.”

Adesina, who described bitcoin as the best financial performing asset of all time, said at least 87 per cent of young millionaires had crypto exposure, enabling the creation of more financially stable individuals on the African continent.

Speaking on the rise of illicit transactions in crypto, he highlighted that less than 10 per cent of the transactions were illegal, saying that Africa was the continent with the least exposure to fraud.

“From the regulatory point of view, we realise that the specialised nature of the crypto market has made it difficult for it to be regulated. I think, to be honest, it is safe. If you look at data on forensics around crypto transactions, less than 10 per cent are illicit. Out of that 10 per cent, Africa has the smallest and the most exposed is the Asian market.

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“However the centralised model of the crypto market has given concern to regulators. For the first time, crypto can be moved without traditional institutions (banks) and it is moving over $400bn dollars per quarter, which is creating some nightmare not only in Africa but in western markets like the United States,” he explained.

The analyst, who also doubles as a journalist, argued that cryptocurrency had helped Nigerians in the diaspora with remittances.

He added that the assets had done more good than harm and created incomes for a growing number of Nigerians, as well as the fintech platforms.

Meanwhile, the Federal Government’s ban on cryptocurrency is still on.

In February, The ICIR reported that the Central Bank of Nigeria (CBN) had directed commercial banks across the country to discontinue cryptocurrency-related services. The apex bank also warned Nigerians against trading and investing in cryptocurrency because of its volatile nature.

The bank noted that cryptocurrency had become an avenue for fraud and money laundering due to its decentralised nature.

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