The Naira Crisis Is Fueling Bitcoin Adoption In Nigeria
"The recent economic cash crisis in Nigeria, caused by the naira redesign, political climate, and economic conditions, has increased bitcoin's value proposition for average Nigerians. In Africa, bitcoin offers an indispensable financial safe haven."
The naira redesign has exacerbated the current economic hardship faced by Nigerians and increased pressure on the unbanked.
Nigerians headed to the polls on Saturday to decide the next leader of Africa’s largest democracy, with economic challenges being top of mind.
Given the current economic climate, bitcoin is viewed by many Nigerians—especially amongst the younger generation—as a safe haven for both the underbanked and unbanked as economic conditions worsen.
At the moment, there is a cash shortage causing Nigerians to wait in lines at ATMs for hours to get their hands on the new notes. The daily withdrawal limit of ₦20,000, coupled with the unavailability of new notes across banks, makes the situation even worse. Some people are resorting to bringing blankets to sleep in the unmanageably long lines.