Nigeria competes with Venezuela as the ideal remittance case study for Bitcoin

Chris Dannen

By Chris Dannen

Nigeria has unfortunately become an ideal environment for Bitcoin adoption, with a massive population of 173 million people and a black-market premium of up to 70% on currency conversions. Under strict currency controls, Nigerians face less inflation than Syrians or Venezuelans, but more than other famously-troubled economies like Egypt at around 15% per annum. However, Nigeria hasn't yet reached Veneuzeula-level adoption. On a pro rata basis Venezuelans still use LocalBitcoins.com more than any other country; it is the #213 most-trafficked site on the Web in that country, while its global average ranking is #5,641.

A Case Study of Use of Bitcoin for Remittances in a Currency Crisis: Nigeria in 2016
"So Cash Dollars convert to the greatest amount of local Nigerian currency but there remains the problem, how does the expatriate Nigerian deliver physical cash dollars to his family in Nigeria? Using Bitcoins is a close number 2 in terms of the total return, but does not encounter the problem of physically transporting currency to the destination. And selling Bitcoins for NGN on LocalBitcoins.com is not a crime, whereas selling USD for NGN in the black market is a crime."

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