Nigerians resort to purchase of Bitcoin amidst reports of economic downfall

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African most populous Nation, Nigeria official currency, the naira  is the latest experiencing tough times because of the global economic turbulence. In a matter of a month, it has tumbled significantly against the US dollar, which has caused growing concerns among its citizens.

The panic multiplied when Godwin Emefiele, Governor of the Central Bank of Nigeria, Nigeria’s apex bank warned bank clients, high-profile individuals, and politicians to refrain from withdrawing naira to convert it into the greenback. He said that a relevant surveillance system will track whether such illegal transactions are committed and will punish those who do not abide by the rules.

The confusion in one of Africa’s leading economies has  prompted many Nigerians to look further to other investment options that could serve as a hedge against inflation. In particular, they focused on bitcoin and stablecoins.

The crash of Nigeria’s national currency (naira) reportedly pushed many residents to turn to alternative assets such as bitcoin and stablecoins to preserve their wealth. The peer-to-peer exchange LocalBitcoins marked a 258% increase in BTC purchases compared to last week’s figures.

Nigeria isn’t the only country where citizens have resorted to the purchase of cryptocurrencies to serve as a hedge against the present economic downfall with Turkish and Argentines following suit due to the galloping inflation and its devaluation of the national currency, becoming a reason for many Turks to convert their funds into Bitcoin and Tether. It was considered a surprise why locals displayed such interest in those digital assets since gold has been their favorite choice for years.

Not long ago, though, the government urged people to bring their “under-the-mattress” precious metal into the banking system and thus support the falling financial network.

Argentina is another country that battles monetary distress and political chaos. At the beginning of July, the Minister of Economy, Martin Guzman resigned from his post, which inflicted more panic among the locals.

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