Once again government bans have proved ineffective against cryptocurrencies. This time it happened on Nigeria, whose central bank, three months ago, made the decision to restrict financial institutions from dealing with anything related to cryptocurrencies.
Recent data indicates that P2P trading in Nigeria has since exploded, increasing 27% since restrictions were introduced by the country's central bank.
Nigeria is Paxful's largest market and the largest P2P market in Sub-Saharan Africa. The enthusiasm with which the country's youth have joined cryptocurrencies has made Nigeria known as the Bitcoin Nation of Africa, with its trading volumes setting records before the ban.
The instability of Nigeria's currency, the naira, is perhaps the key factor in understanding the growth of cryptocurrencies in the region. In addition, the country has a large number of unbanked people, but who have smartphones, making them eligible to be included in the financial system through cryptocurrencies.