Bitcoin soars on banking restrictions in Nigeria

Demand for Bitcoin has skyrocketed in Nigeria due to decisions by the country's central bank that seek to reduce the use of paper money and encourage the population to use the country's digital money.

The cost of Bitcoin on Nigeria's leading crypto exchange, NairaEx, is currently trading at around 17.6 million Naira, the currency of Nigeria, which is equivalent to $38,200 US Dollars. This represents an increase of almost 60% compared to Bitcoin's current price of $23,200.

This spike in the price of Bitcoin from NairaEx came after the country's central bank began limiting over-the-counter (OTC) cash withdrawals by individuals and corporate organizations per week.

This withdrawal limit policy only allows Nigerians to withdraw a maximum of 20,000 Naira ($43) from ATMs in the country per day, and with a limit of 100,000 NGN ($217).

This measure is supposedly aimed at eliminating money laundering and reducing inflation in the African country, whose rate released in December 2022 was 21.34%. In addition to it, the Central Bank of Nigeria has also given Nigerians until 24th January to exchange their old higher denomination notes for the new currency.

Increasingly Bitcoin penetration has increased in Nigeria, it is estimated that last year, 32% of the population used the cryptocurrency. With the dissatisfaction due to the new decisions of the Central Bank of the country, the country should remain firm in the trend of increasing the use of Bitcoin.