Introduction

Hi everyone, I'm glad to use this opportunity to write about currency in Nigeria, and how crypto currency is being able to thrive in the Nigerian economy. Please read through this article.

Edited on Polish App

What is Crypto currency?

A crypto currency is a digital means of payment. It is a digital money that can be used in acquiring goods and services just like the visible money or notes. Crypto currencies are mostly decentralized and only the holders can have access to it.

Crypto currency is stored in a medium called 'wallet address'. It is also decentralized in the sense that it has no singular or universal mega control So, it can be explored solely by every owner of it through a block chain that is decentralised too. Everything about crypto is plain and transparent.

With these definitions from my knowledge of crypto currency, it is clear that the using of crypto is more easy, safer and reliable than notes.

How have naira notes faired in Nigeria?

Naira notes in Nigeria include: 1000 naira note, 5000 naira note, 200 naira note, 100 naira note, 50 naira note, 20 naira note, 10 naira note, and the 5 naira note.

These forms of currency are perishable when in the solid state in the sense that when fire burns these notes, the money goes in extinction. Also, when it tears beyond fixing, the value perishes. These facts limit the reliability and security of the notes, and affect the flow and circulation of the money. In fact, it is always rumoured that direct contact with these naira notes to some sensitive parts of our body and skin can cause cancer.

Due to the way people treat these notes roughly, some are being rejected while some go out of validity for usage, thereby, get recycled by the central banking system.

Also, saving the naira with the local banks can cost a lot. Most times, they deduct maintenance costs for ATM cards, transaction fees, and other minor deductibles. This can be frustrating sometimes.

Funny enough in Nigeria, some people think that poverty can be alleviated if the central bank of Nigeria prints more money and share to everyone. But that is not possible because, the amount of notes available should be directly or approximately equal to the amount of funds the economy of the nation has in figure. And this figure is solely influenced by local market activities, international business, goods and services exchanged in the country, and finance rates. The figures must be equal to the notes and printing more notes than the figures is an international crime.

All the financial information and activities of each Countries are supervised by the World Bank in Switzerland.

The value of the Naira

In the world current market system, the value of Euros, Dollars, And other popular currencies are used as key comparisons because they are the most traded with. Countries with the highest level of economic growth also tend to have an edge in the cost of currency. In matching Naira with other currencies, the value is very low. For instance, currently as of when I am making this post, One naira is equivalent to 417 US dollars.

The key factors that influences the price of a currency (digital or paper) are its demand, circulation and usage.

Now let me write a bit about how Crypto currency has impacted Nigeria.

Evolution of crypto currency in Nigeria

Nigeria launched its digital currency in October 2021, known as the e-Naira, this is a digital form of the Nigerian Naira, and its used also as the Naira. Furthermore, we cannot say that the e-Naira is a Crypto.

As a matter of fact, in 2009, Satoshi Nakomoto was said to launch the first ever crypto currency of the world, known as Bitcoin. Bitcoin is considered the father of the cryptos. It has been widely used in many countries of the world including Nigeria.

Since the invention and implementation of bitcoin, many other people have mimicked that trend and invented other thousands of cryptos to ensure a digitalized scheme of currency flow in the world.

One of these Crypto currencies is Steem. I came to know about steem when I joined the Steemit platform. I have benefited a lot from the acquisition, usage and knowledge of steem. Currently, 1 steem is equivalent to around 205 Naira, and I have acquired thousands of steem on this platform, which I have used to trade and solve my financial problems. The Steemit platform also has another Crypto to offer, which is the steem dollars(sbd). Currently, as of when I am writing this post, 1 sbd is equal to 2,100 naira.
Steem Crypto symbol.

How have Nigerians reacted to this trend?
Actually, Nigeria currently ranks among the first five countries with the most Crypto holders. The screenshot is below

Screenshot Source
Amazingly, Nigeria really responded well in coping with the technical know how as regards the use and awareness of crypto. It's not an easy achievement to rank 3rd in the world, having more than 13million crypto owners. This shows that Nigeria is Crypto inclined, and an advocate of digital monetization.

Talking about Bitcoin, it is the mostly circulated and used crypto in Nigeria and the world as a whole.

Talking about steem, Thousands of Nigerians are also on the Steemit platform, making a lot of profit in the crypto market and utilizing their creativity by publishing quality contents on Steemit.

Nevertheless, even though the regulation of crypto was banned in 2021 in Nigeria, The holders of Crypto still trade with other countries in advanced ways and also exchange Crypto through other uncontrolled means in Nigeria.

Note: Crypto is not illegal in Nigeria. It's rather not under regulation.
Initially, it was banned because of some reasons:

• Illegal activities carried out with it by scammers
• The misconceptions of dominance by digital monetization against local banking systems which brought about concerns to the economic, employment and funds system in Nigeria.

The biggest questions still remain :

1. WILL THE USE OF CRYPTO REDUCE EMPLOYMENT RATE IN NIGERIA?
2. IS THERE ANY CHANCE OF INCREASE IN CORRUPTION WITH THE USE OF CRYPTO?

Not withstanding the fact that these questions should be scrupulously scrutinized, I still believe that in 20 years to come, Crypto currency will dominate 90% of world's trade and monetization system.

This simply means that it is necessary to start now to improve and implement the usage and knowledge of crypto currency in Nigeria the more.
Many people prefer to have crypto over paper currencies, and some companies and service renderers are now exploring the acceptance of crypto currency in trading.

Advantages of crypto currency

• It is easy to store, and the storage cost is zero
• It is easy to access. With your wallet address and password or pin, only you would have easy actress to your digital currency
• It is decentralized. This means that nobody on earth manages a focal unit of all the cryptos. There is no bank, organization or office that controls the affairs of our Crypto. We are sole owners and controllers of it. This emphasizes on the rate of privacy and security in the usage of crypto
• It improves our knowledge of the tech world. In the quest to acquire, use and transfer Crypto, we learn new things about technology, science and computer operations. This enhances the tech level of world population.

I am hereby convinced that we should be advocates of digital currency in Nigeria, in preparation for what the future holds for the world.

Thank you for going through this article. I hope to be back with another intriguing story soon.

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