Despite contrary indications from the Central Bank of Nigeria, it appears that the new payment technology, cryptocurrency, has gained significant traction in the past year. This may indicate a strategic positioning for the next stage in Nigeria’s changing payment landscape.
According to the Luno Cryptocurrency 2018 Awareness Survey, 65% of Nigerians expressed familiarity with cryptocurrencies. It further indicated that of the total respondents, 76% of men and 54% of women said they were aware of cryptocurrencies.
The report indicates that there is expected growth in adoption of cryptocurrency in 2019, despite the significant price volatility experienced in 2018. This is evident from the number of people who do not currently own any cryptocurrency but indicated willingness to buy.
According to the report, 48.09% of the participants said that, while they do not presently own cryptocurrency, they were willing to buy in the future. Notably, female respondents edged this group at 51%.
Also evident in the report is the fact that Bitcoin remains the king of cryptocurrencies in terms of awareness. Over 80% of those who own
cryptocurrency claim to own Bitcoin, specifically. Ethereum, Bitcoin Cash, and Litecoin are a distant 2nd, 3rd and 4th at 30%, 23% and 22%respectively.
Why Nigerians buy Cryptocurrency
An overwhelming 76% majority buy cryptocurrency as a form of investment. Those who use cryptocurrencies for payment or remittance (30%) came in second while online shopping and micropayments were other significant uses.
And, the report indicates that majority of Nigerians are willing to invest in cryptocurrencies if they feel secure. According to 42% of respondents, improvements in transaction security and protection against hacking
will positively influence their level of confidence in cryptocurrencies in the future.
With continuous awareness, 2019 may be a great year for Cryptocurrency trading. And, Luno Cryptocurrency has assured of their readiness to drive more publicity.
“In the coming months, we will continue contributing to the growth of the cryptocurrency market in Nigeria, focusing on education and accessibility.”
Owenize Odia, Luno Country Manager
A Bit About Cryptocurrency
Developed by a person (or group) called Satoshi Nakamoto in 2008, Bitcoin was the first cryptocurrency, created for the digital world, and is entirely decentralised.
Prices of Bitcoin, Etherum and Ripple have skyrocketed over the last year, but they drag with them a huge volatility risk. Last year, the market cap for cryptocurrency was $661.2billion (in comparison, Nigeria’s GDP is $510 billion).
Meanwhile in Nigeria, cryptocurrencies are in popular demand. According to Bloomberg, peer-to-peer transactions have risen almost 1,500% this year.