The central bank of Nigeria has just limited cash withdrawals to $44 per person per week. For businesses, the limit is $11,000. Immediately after, Google searches for “Buy Bitcoin” exploded in the country and now dominate all other countries.
Why are young Nigerians increasingly looking to buy bitcoin?
Searches to buy bitcoin have reached an all-time high at the start of the year in Nigeria, to the point where it dominates other countries as we learned Bitcoin Magazine. However, it should be noted that the country has always been one of the leaders in the crypto industry. Indeed, in Africa’s largest economy, “how to buy bitcoin” searches have remained quite high since 2017. They peaked around mid-2020. perform the most cryptocurrency transactions.
Nigeria, towards a fully digital economy
It is not a financial or economic crisis that is causing the central bank of Nigeria to limit cash withdrawals. On the contrary, it is a voluntary and well-considered decision which must lead to a complete digitalization of the Nigerian economy. Moreover, Modibbo R. HammanTukur, Head of the Nigerian Financial Intelligence Unit (NFIU) said “ As far as we are concerned, Nigeria will become a fully-fledged non-monetary economy by March 1, 2023. Accordingly, any government official who withdraws even one Naira from any public account from of March 1 will be investigated and prosecuted. »
” Public officials are increasingly vulnerable to money laundering and its predicate offenses due to their exposure to cash withdrawals from public accounts ” he added. Recall that almost 85% of the 3,230 billion naira (7.2 billion dollars) in cash in circulation are no longer held by banks, but are in the hands of citizens.
In addition to reducing corruption and money laundering, this decision by Nigeria’s central bank will boost the adoption of its e-Naira. This digital currency was launched, but did not achieve the expected success. Would this strategy be the right one to boost the adoption of digital currencies ?
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