As the Nigerian government continues to wield a long stick against crypto companies and users in Nigeria, a crypto leader in the space has revealed that Bitcoin usage and holding always rises astronomically whenever the government takes one of its drastic and crippling measures against the industry.
The leader who disclosed this on condition of anonymity due to the persecution of crypto leaders in the country, said the government cannot force businesses and individuals from holding and using Bitcoin and other cryptocurrencies when most of them depend on the digital currencies to make their businesses and lives better.
Quizzed by this reporter on whether the crackdown of the crypto space by the government and its agencies is not affecting adoption and Bitcoin holdings in the country, the crypto chief said it was not. He said this was so because whenever the government prohibits something, especially without any cogent reason, that was when there was always an all-time high.
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“When you tell us ‘don’t hold BitCoin’ that is when we hold it more. Because when you are telling people they should not remit money, like I am a businessman, I need to buy something in China, I need to settle someone in China. And you are not even making the dollar to be available for me to consume, it is only for the elite classes. I will run to Bitcoin to use it for my settlement,” they said.
The crypto leader also pointed out the sheer joblessness and huge rate of youth unemployment in the country as another reason why a lot of young people are adopting and holding crypto, insisting that it has become a source of livelihood for many youths like themselves.
“Young Nigerians don’t have jobs. I have been feeding from the peer-to-peer (P2P) market since 2016. I do that on a daily basis so it is a source of income for me. I make money from it, I feed my family from it. I am what I am from buying and selling Bitcoin. We lose money, we make money but the government should think about that,” they said.
Bitcoin adoption under an anti-crypto regime
The Nigerian government has come down very hard on the crypto industry in Nigeria. Right from the initial proliferation of Bitcoin, the government has always initiated policies aimed at stifling adoption. The reasons cited by the government range from fraud to terrorism. In its effort to shore up the falling value of the local currency, the naira, the government of President Bola Ahmed Tinubu outlawed the activities of crypto exchanges, stating that they are being used for illegal forex trading.
To this end, crypto exchanges like Binance and Kucoin have exited the country. The others have been operating below the radar, reluctant for publicity and visibility. Crypto leaders have also become endangered, with many going into hiding, carefully watching their movements and reluctant to say things to the media.
Asked about these effects of the crypto policy in Nigeria and how they are affecting the space, the crypto leader said it is taking its toll generally. But specifically, its effects are being felt more to the extent that crypto companies and exchanges are leaving Nigeria and Nigerians working in those exchanges are losing their jobs.
“Right now it is affecting because you see some exchanges leaving Nigeria. Like Kucoin left. Binance left. So what does that mean? Nigerians working in those companies actually lost their jobs. Just because of the bad regulatory landscape and how the government is ruining everything that has to do with crypto. And the government has failed to understand that this is where they can also make a lot of money to add to our economy,” he said.
Speaking about the policy landscape itself, the crypto leader pointed out that right now, the crypto policy in Nigeria is still very unclear. He noted that there is no actual guideline or roadmap for businesses operating in Bitcoin and cryptocurrency to adopt. He said if the government were to be open enough to let the stakeholders guide them on how to create and implement a clear roadmap, it would make Nigeria one of the countries with the best crypto regulations.
