Cryptocurrency usage continues to surge in Nigeria as the nation, Africa’s most populous, faces a weakening currency and rising inflation, according to a report released Wednesday by New York-based blockchain research firm Chainalysis.
Ranking second globally on the firm’s Global Adoption Index, Nigeria saw approximately $59 billion in cryptocurrency transactions between July 2023 and June 2024.
This marks a 4.06% increase from the $56.7 billion recorded in the same period the previous year.
Similar to other African countries, Nigeria is grappling with a foreign exchange crisis, which has driven more people towards digital currencies.
“Around 70% of African countries are experiencing an FX shortage, leaving businesses struggling to access the dollars they need to operate,” explained Chris Maurice, CEO and Co-Founder of Yellow Card.
The report highlights that many Nigerians are turning to stablecoins as a solution to the dollar scarcity. “Banks don’t have dollars, the government doesn’t have dollars, and even if they did, they wouldn’t make them available,” Maurice added.
