Since roughly after 11 days since Nigeria banned all regulated financial institutions from offering services to cryptocurrency exchanges within the country. At the danger of stiff penalties, all banks and institutions were directed to shut cryptocurrency-related firms’ accounts immediately.
In the wake of the controversial move, public interest in Bitcoin [BTC] in Nigeria continues to outstrip other countries, consistent with the newest available data from Google Trends. Even more stark is that the hefty 36% premium on Bitcoin’s price as of the time of reporting.
The premium translates into a $71,150 USD tag per Bitcoin, as compared with the typical commodity exchange price of $51,314 USD calculated. The premium is additionally incomparable to the five next leading premiums globally at present: 3.24% in South Africa, and between 1% and 3% in Argentina, Peru, Malaysia, and Vietnam.
As reported earlier, the immediate impact of the central bank ban appears to possess done little to quell what its author referred the “hyperbitcoinization” of retail trading culture within the country. Blockchain.com revealed a report earlier in Aug. last year revealing that Nigeria had been the best-performing country on its platform since April of that year. Google Trends at the time likewise reflected the country’s persistent top ranking in terms of worldwide search interest in Bitcoin.
Citing the results of the central bank ban, Nigeria’s SEC [Securities and Exchange Commission] halted its planned regulatory sandbox for cryptocurrency firms last week.
Nigeria senator Sani Musa remarked within a plenary Senate on 11th Feb. that Bitcoin posed a big threat to the national fiat currency, the naira, although other lawmakers countered his argument with an argument in favor of cracking down on rogue actors using crypto assets, instead of preventing citizens from doing “great business” and taking advantage of opportunities within the crypto industry.
Representatives from one crypto business in Nigeria declined on the premium, citing a sensitive climate following the central bank of Nigeria’s ban on banking services to cryptocurrency businesses.