In the northern states of Katsina and Borno, residents are increasingly interested in the meme coin dogecoin. Meanwhile, in Delta State, known for its financial services leaders, bitcoin garners significant attention. A Nigerian lawyer has called on authorities to implement cryptocurrency regulations if they aim to have an impact on the industry.
USDT Favored in States With Underdeveloped Banking Infrastructure
Nigeria’s interest in cryptocurrencies has remained robust despite the ongoing crackdown on digital asset exchange platforms, with bitcoin and meme coins like dogecoin dominating in various regions. According to a Nairametrics report, interest in dogecoin is more prevalent in Nigeria’s conservative northern states of Katsina and Borno. These states, along with Akwa Ibom, Jigawa, and Yobe, also show a marked interest in solana, the report added.
Bitcoin (BTC), on the other hand, has Delta State as its stronghold in Nigeria, with Anambra, Bayelsa, Edo, and Rivers states also demonstrating significant interest. The report said Bitcoin’s prominence in Delta State is not surprising, given the region’s reputation for producing some of Nigeria’s leading figures in the financial services sector.
The report also indicates that Nigerians in states with limited banking services appear to prefer the stablecoin USDT. As Google data indicates, USDT is in high demand in the states of Ebonyi, Anambra, Jigawa, Bauchi, and Enugu. Ethereum ranks as the most searched-for cryptocurrency in the nation’s southeast.
Despite the implementation of bans and measures to restrict cryptocurrency trade and usage in recent years, Nigerian enthusiasm for digital currencies has not diminished. The country’s unstable currency and high inflation rate are frequently mentioned as key factors driving Nigerians’ sustained interest in cryptocurrencies.
Nigeria Urgently Requires a Regulatory Framework for Cryptocurrency
Meanwhile, in his recently published opinion piece, Senator Ihenyen, lead partner at Infusion Lawyers, suggested that Nigeria’s interest in cryptocurrency is unlikely to wane. He argued that rather than trying to drive out cryptocurrency trading platforms, Nigerian authorities should consider implementing “an operational risk-based regulation.”
He posited that only with such regulation in place will officials be able to exert the influence over the cryptocurrency industry they seek.
“We need crypto regulation. For years, the Nigeria crypto industry has—with the limited support given to it by governments and regulators—been largely self-regulating. We cannot continue to hawk common inaccuracies and misconceptions about how all or most of the crypto is anonymous, criminal, dark, and opaque. Not in 2024,” Ihenyen said.
According to a Nairametrics report, many Nigerians are turning to cryptocurrencies as an alternative to the U.S. dollar, which is currently in short supply. Crypto assets such as BTC and USDT are being utilized as a hedge against inflation.
