As old fiat notes are invalidated Bitcoin soars in demand in Nigeria.
In Nigeria, peer-to-peer Bitcoin prices soared to over $60,000 due to high demand, a premium of over 150% compared to U.S. crypto exchange prices of $23,600.
Peer-to-peer Bitcoin buyers and traders in Nigeria are paying more for their Bitcoin compared to anywhere else in the world.
Nigerian Bitcoin premium pushes prices up 150%
With Nigeria introducing new fiat Naira notes citizens have until February 10 2023 to swap their old notes for new ones.
Many financial analysts believe that citizens should be given more time to exchange their old currency as the old notes are phased out in order to reduce inflation.
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According to reports, some people are having difficulty exchanging their old notes due to a lack of new notes in circulation, as well as difficulties withdrawing cash from local banks.
The Central Bank of Nigeria has previously encouraged people to use digital payment methods rather than relying too much on bank notes. In addition, regulators are attempting to integrate the eNaira CBDC into Nigerian society.
In 2021 the Central Bank of Nigeria banned financial organizations from offering services to crypto exchanges.
As a result of the multiple issues surrounding the note swap, some Nigerians have decided to put their money into Bitcoin, resulting in such high demand for the cryptocurrency on peer-to-peer platforms.