Nigeria’s Central Bank’s push for digital money promotes Bitcoin adoption among citizens with a 60% premium on the NairaEX crypto exchange.
In December 2022, the Central Bank of Nigeria introduced the Naira redesigned policy. The new policy would limit ATM cash withdrawals with the aim of promoting the adoption of the eNaira CBDC. The directive limited individuals and businesses to withdraw $225 per week from ATMs.
The central bank’s efforts to promote the use of digitalized money pushed the citizens into embracing Bitcoin. Currently, the price of Bitcoin in Nigeria has significantly surged to higher than the market levels.
1 Bitcoin now equates to 17.8 million Naira on the NairaEX crypto exchange, equivalent to $38,792. This reflects more than a 60% increase compared to the current market price of Bitcoin, which is around $23,700.
Also read; SEC Nigeria Sets Regulations for Digital Asset Platforms
Central Bank imposes limits on cash withdrawals
As of January 9th, citizens would only take out a maximum of 20,000 NGN per day, with a limit of 100,000 NGN. Equating to $43.50 per day from ATMs.
Earlier before the withdrawal limits, the bank redesigned new Naira banknotes to curb inflation and money laundering. Citizens had until Jan. 24 to exchange their old higher denomination bank notes for the new currency.
However, this led to long lines and complaints about insufficient time to exchange the old banknotes for the new currency. The deadline was later extended to February 10th.
Nigeria’s ban against crypto exchanges
The central bank’s previous ban on regulated financial institutions from providing services to crypto exchanges in February 2021 also led to the increase in Bitcoin premium in Nigeria. Google Trends indicates that the popularity of Bitcoin in Nigeria reached a peak of 36%.
The Central Bank of Nigeria previously launched a domestic card scheme, “AfriGo.” The new card focused on providing better access to bank card services and avoiding expensive foreign card fees and exchange costs.
Related; Vigor for Cryptocurrencies in Nigeria Deters Adoption of the eNaira
