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Bitcoin trading at $60,000 in Nigeria

As Nigeria pushes to launch its CBDC eNaira, Bitcoin's value is rising in the country.

By Mike Hesp
• 2 min read
Bitcoin trading at $60,000 in Nigeria

As Nigeria pushes to launch its CBDC eNaira, Bitcoin's value is rising in the country.

Bitcoin is currently trading on Nigerian crypto exchanges at a price of $60,000. Since the government pushed the rollout of its own digital central bank currency, the eNaira, interest in a decentralized, open, and secure alternative to the CBDC has surged. Bitcoin has become a way for people to push back against centralized money control. And that shows in its price.

This is why the BTC price has risen so much

The Nigerian Monetary Authority recently set February 10 as the deadline for the surrender of old banknotes. The government is replacing old banknotes with new ones. The move is designed to accelerate the transition to the central bank's digital currency (CBDC) and curb counterfeiting, inflation, and money laundering.

Because of the resulting cash shortage, demand for Bitcoin has risen. But supply is tightly limited, so the BTC price on peer-to-peer (P2P) platforms like LocalBitcoins sits at an average of $38,000. About 65 percent above the current coin price of $23,000. Other selling offers top $60,000 per bitcoin.

This uptick in interest can be measured. According to Google Trends, searches for "buy Bitcoin" and "how to buy Bitcoin" are currently the top online queries in Nigeria.

CBDC: Nigeria wants to promote the eNaira

Nigeria is one of the few countries that already has a digital central bank currency (CBDC) in circulation. The eNaira is part of the cashless Nigeria monetary policy. The central bank sees big opportunities for the financial infrastructure in digitizing money: "An efficient and modern payments system correlates positively with economic development and is a key driver of economic growth."

But uptake of the eNaira among the population remains low. It is estimated that less than 0.5 percent of citizens use the CBDC. To boost adoption, the government has restricted cash withdrawals since early January. Individuals can only withdraw $45 a day from ATMs. If you withdraw more, a 5 percent fee applies.

Whether the government will succeed with these strict measures remains to be seen. With Bitcoin gaining traction among the population, the state now has a seriously growing competing currency.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.