Peer-to-peer bitcoin traded volumes in Nigeria of over $1.1 billion between January 2021 and June 2022 means the West African nation is now Paxful’s largest market. Kenya, which has seen traded volumes of over $325 million over the same period, now ranks as Africa’s second largest crypto exchange market and fifth overall.
Financial Exclusion Boosts Bitcoin P2P Traded Volumes
According to the latest data from peer-to-peer crypto exchange platform Paxful, bitcoin traded volumes in Nigeria in the first half of 2022 almost surpassed $400 million. Combined with the $760 million in trade volumes seen in 2021, this means the West African nation is now the world’s largest crypto exchange market.
The growing volume of bitcoin being traded in Nigeria through the peer-to-peer (P2P) exchange comes at a time when regulators are cracking down on financial institutions that violate the Central Bank of Nigeria (CBN) February 5, 2021 directive. The directive prohibits banks and other regulated financial institutions from facilitating transactions involving cryptographic entities.
Explaining the reasons for rising P2P volumes in Africa, Paxful told Bitcoin.com News that a general lack of access to financial services across the continent is driving people towards bitcoin. Paxful said:
For a market like Africa, where many people are underbanked and where financial institutions are not as easily accessible, P2P financing offers an opportunity for financial inclusion. There has been an explosion in Bitcoin adoption in Nigeria due to a multitude of factors: a 33% unemployment rate, an unbanked population of 38 million adults, a young and entrepreneurial community (over 75% of its population is under 35) and financial instability. – like the volatility around the Naira.
According to the P2P exchange, all of these factors make “a massive case” for bitcoin, a technology it said was “built for the masses.”
Volume growth in Kenya and Ghana
While Nigeria is Paxful’s largest market globally, Kenya, which saw P2P volumes of over $200 million in 2021 and over $125 million in the first half of 2022, is now the second largest. largest crypto exchange market in Africa and the fifth largest in the world. Paxful added that it “expects trade volume growth of 25% in Kenya for 2022.”
Commenting on the significant growth seen in Kenya and Ghana, Paxful said:
“There are more and more African users sending money over the years – the total remittance user base (users transacting in multiple currencies) on Paxful has grown by almost 140% in Kenya and over 115% in Ghana in 2021. In 2021, Ghana experienced 95% annual growth in trade volume.
Regarding the Central African Republic (CAR) – the first African country to adopt bitcoin as legal tender – Paxful welcomed the move and said it hoped the country would use “bitcoin to set monetary policy to make advance its economy. The crypto exchange, however, said it had “nothing of note” to share regarding CAR volumes.
Register your email here to receive a weekly African news update delivered to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.