Twenty-seven percent of Nigerian internet users own cryptocurrency data, according to a report

This is despite the Central Bank of Nigeria’s restriction on digital currencies in the country.

The CBN had ordered banks in February 2021 not to allow transactions related to crypto assets in the banking sector.

The main bank said: “In addition to previous regulatory directives on the subject, the bank wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”

However, cryptocurrency adoption has continued to grow largely due to peer-to-peer transactions. Growth in cryptocurrency adoption increased 21 percent last year.

According to the report, men are much more likely to own cryptocurrencies, as 59% of cryptocurrency holders are men and 41% are women.

Bitcoin (47%) is the most popular digital asset in the country, followed by Ethereum (25%).

Finder cryptocurrency specialist James Edwards said: “We saw big drops in the price of Bitcoin in early May and June, which led to a decline in cryptocurrency ownership in other markets.

“However, looking at Google Trends, search interest for ‘buy Bitcoin’ in Nigeria has increased over the past year, suggesting that consumers are hoping to buy the dip. This suggests that while some people have sold, others are holding on for the long term or may have bought cryptocurrency for the first time at what they consider to be a discount.”

According to Edwards, with the recent volatility seen in the cryptocurrency sector, investing in the sector is not for the faint-hearted. He added that he is surprised by the growing acceptance of the digital asset in the nation despite its recent market downturn.

A Chainalysis report in 2021 indicated that the crypto market in Nigeria and other African countries grew by 1,200 percent in one year. He added that Africa had the third fastest growing crypto economy in the world.

According to the International Monetary Fund, countries with stable inflation, exchange rates, and credible institutions were highly unlikely to adopt cryptocurrencies as legal tender.

With the increasing adoption of the digital asset, experts have said that there is a need for the CBN to regulate the currency rather than ban it.

From early 2021 to June 2022, Nigerians have exchanged N497.35 billion ($1.16 billion) worth of Bitcoin on Paxful, a P2P crypto platform.

Commenting on its 2021 operations, the company stated that Nigeria was its largest country based on trade volume, with over $760 million in trade volume and over six million successful trades.

In a previous interview with the punch, Blockchain Nigeria User Group Founder/Convenor Chimezie Chuta said: “Unfortunately, in February 2021, the Central Bank of Nigeria published that circular which restricted financial service providers from interacting and dealing with crypto entities. . But that did not in any way slow down the adoption of crypto assets in Nigeria.”

He added: “In my opinion, not regulating is a great disadvantage for an economy that wants to prop up revenue through taxes and Foreign Direct Investment. It is counterproductive not to regulate a flourishing sector like cryptocurrencies.

“The result is that the nation is losing a lot of money, a lot of revenue that could have come as VAT. Because if you don’t regulate, you can’t tax”.