According to fresh statistics from peer-to-peer (P2P) exchanges, Bitcoin trading increased in Nigeria, Kenya, and Ghana in the first quarter of the year 2021. Kenya and Ghana placed second and third, respectively, in terms of Bitcoin transaction volumes, according to CoinMarketCap. On the other hand, volumes in South Africa, which was in second place in 2020, decreased slightly, resulting in the country being demoted to fourth place, according to statistics.
Meanwhile, a local media article has linked the rise in P2P increasing volumes in Kenya and Ghana to the two nations’ acceptance and support of cryptocurrencies, according to the report. To provide just one example, a recent announcement by the Ghanaian Central Bank of the establishment of a legal “safe harbor” that favors blockchain-based businesses, including cryptocurrency startups, may have contributed to the country’s increased participation in the P2P bitcoin boom. However, this is in contrast to the situation in South Africa, where regulators have reinforced their warnings against cryptocurrency usage and investment as a result of the collapse of Mirror Trading International, which occurred in February.
Bitcoin 2020, a cryptocurrency network that gained notoriety in 2020, was dubbed the greatest hoax of the year.
It is said that South Africans lost millions in bitcoin investments when the platform’s proprietor fled to Brazil, as reported by Chainalysis. Since then, cryptocurrency transactions in South Africa have come under greater attention as a result of tighter laws, which include obligatory licenses and fees that force investors to sell their holdings. E-Play Africa also claims that bitcoin trading in South Africa has essentially lost its autonomy, which has reduced the market’s attractiveness to investors, according to the publication. The data indicates that P2P volumes in Nigeria have increased as a result of the Central Bank of Nigeria (CBN) order against crypto firms, which was issued on February 6 and has been in effect since then. The top bank prohibited fintech firms from facilitating payments related to cryptocurrencies, according to a statement. According to statistics from Tulip, a well-known platform use case in Nigeria, P2P bitcoin trading volumes among Nigerians have increased to over $100 million in the last 90 days. The fact that this number is almost two and a half times higher than that of Kenya, which came in second, indicates that more bitcoin users are now using P2P networks.
Nigeria has also developed a reputation as a hotspot for cryptocurrency trading as a viable alternative to the country’s official currency,
which is subject to rapid devaluation. Nigerians have discovered a variety of applications for decentralized digital money, ranging from trading bitcoin to earning a livelihood, despite the fact that some cryptocurrency users in the country have expressed their dissatisfaction with the instructions. Customers have flocked to P2P after the Nigerian government decided to prohibit cryptocurrency facilitation, according to reports. At the same time, to continue to use cryptocurrencies by adopting a peer-to-peer (P2P) technique that is more difficult to identify and halt. Because of the decentralized nature of cryptocurrency ownership and trade, individuals in Nigeria may still purchase and sell themselves.
Meanwhile, according to Tulp statistics, P2P traded volumes in many other African nations increased significantly following the implementation of lockdown measures in March 2020; since then, several countries on the continent have seen their P2P bitcoin traded volume increase consistently over time. Peer-to-peer (P2P) transactions, on the other hand, refer to a situation in which User A places their bitcoin in escrow with the exchange. User B, on the other hand, sends an amount of money equal to the value of the cryptocurrency being bought to the bank account of User A upon receipt of naira equivalent currency. User A verifies the transactions, and the crypto is given to User B. User A certifies that the transactions were successful. Despite the resurgence of peer-to-peer transactions, there have been an increase in the number of instances of cryptocurrency fraud.