Hello Friends, |
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Welcome to Nigeria my country, where the current economic and financial state of the nation is at its worst. Let me start by telling us that the current rate of our local currency (Naira) to the US Dollar as of the time of writing this article is $1 ≈ ₦1591.17 NGN.
This shows that the value of our local currency have lost its value to a very large extent. Infact, this has caused more hardship and financial instability in the price of the items sold in the country.
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You can't go to the market today and buy what you bought one week ago at the same price. Infact, the fluctuating of prices tend to happen every 2days interval, and when the price of items goes up, it's usually hard to come down.
My Government's Reaction Of Dollar Rate To Naira |
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Most of my lovely readers would be wondering why I started this article with the rate of dollar to naira. The reason I did so is because this became the basis on which cryptocurrency exchanges became banned in Nigeria.
It would have been normal, if the rate at which item's prices went up was bit by bit. But you won't believe that a bag of cement that ranged around 3-4 thousand naira ( ₦3,000 - ₦4,000) catapulted to around 10 thousand naira ( ₦10,000) within few days.
It became alarming, how prices would go up so fast within the twinkle of an eye, as a result of high dollar rate to naira. And this sparked up various allegations and possible causes of the increase in dollar rate here in Nigeria.
The government came to the conclusion that one of the major causes of the continues increase in dollar rate to naira was that some big market makers in the crypto firms are manipulating the price of dollar.
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Reports from the Nigerian government through Nigerian Communications Commission (NCC), states that all exchanges that pertains to cryptocurrency should cease it's operation in Nigeria.
The government believes that it's citizens are using the crypto space to perform illegal transactions, as nobody is regulating them, because of the decentralized nature of some exchanges.
According to the Nigerian government, some of this big crypto traders become very greedy, and manipulates the market, thereby causing our native token to loss it's value.
It got worst when the value of our local currency to naira got to ₦1,900. The government then banned all the big exchanges including Binance our favourite.
I called Binance our favourite because it supports the peer to peer feature. This is a feature that allows us to see ready buyers and sellers, as well as their rates for transactions.
The Effect Of This Policy |
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Banning exchanges that supports P2P means that even with our cryptocurrency assets, we would still struggle to see buyers that are ready to buy our assets at the correct rates.
This would make lots of people to become reluctant in investing and navigating the blockchain ecosystem. Because they would feel like it's time wasting to navigate and generate coins that you wouldn't be able to sell out of you want to.
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For a person like me that have diverse options on how to still sell my tokens without Binance, it might be easier to continue. But what about the newbies who only knows about Binance?
My Suggestions And Conclusion On This |
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Trading of cryptocurrency assets has not been easy for some few days now here in Nigeria, but that shouldn't be break us. Instead it should help is to try out other available options of trading.
Cryptocurrency trading has come to stay, although it is clear that many nations are yet to adopt it because of its decentralized nature.
With time, I believe the government of my nation would see a greater need to adopt crypto into their financial sector. But before then, let's not give up on our pursuit for greatness in the blockchain space.
To those that misses Binance P2P, I would recommend you check out OKX exchange. It is very much reliable, and it has a great P2P features too.
The verification process for OKX is very fast and easy, and I know you would love it. If you encounter any challenge, I am here for you.