Nigeria Trades $4 Million Dollars in Bitcoin Every Week Despite Government Warnings

Most of the countries on earth have been increasing the amount of dollars used to buy Cryptocurrencies. In Nigeria, the weekly trading volume is over $4 million dollars and the government is warning its citizens about the risks of investing in this volatile market. But it seems that these warnings have no effect on the society.

Warnings Without Effect

This is not the first time that a government warns its citizens not to invest in cryptocurrencies. At the moment, experts on the matter are calling on the Nigerian government to rethink its position and allow innovation to move forward.

There have been multiple warnings from several institutions about Bitcoin and other cryptocurrencies. Indeed, the Central Bank of Nigeria said that “virtual currencies” were not legal tender and that banks should deal with cryptos at their own risk.

At present, there are 13 operative cryptocurrency exchanges in Nigeria and traders are increasing their interest for the cryptocurrency market.

According to Emeka Okoye, software developer and chief architect at Cymantiks Nigeria, Nigerians invest $4.7 million weekly. Furthermore, he urged the government to take a smart approach rather than a ban.

“It is an attitude of allowing innovation to move forward and let regulation follow. It is about the consumers and not about the players.”

The expert commented that regulations would be highly ineffective due to the fact that cryptocurrencies are international. With a card from another country he can easily buy cryptocurrencies if there is a ban or even create a cryptocurrency exchange abroad.

Apparently, the Senate of Nigeria has ordered an investigation about Bitcoin trading in the country. After it, some important financial institutions received two weeks so as to investigate the viability of bitcoin as a form of investment.

In addition to it, lawmakers have asked the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) and the Nigerian Stock Exchange (NSE) to launch a campaign showing the risks of bitcoin trading. The campaign will be held in all the dialects spoken in the country.