Nigerians can now transact directly from their Naira-denominated accounts to buy cryptocurrency on Binance. No need for currency conversion or additional fees.
- Binance announced via Twitter and their website that it would now provide a Nigerian Naira fiat payments gateway
- Nigeria is the biggest user of cryptocurrency in Africa and has one of the highest crypto ownership rates
- The NGN is the second African currency to receive red-carpet treatment from Binance in 2022 after the Rand
Cryptocurrency exchange platform Binance has been very busy in top close in on the African market. They recently added support for the Nigerian Naira for buying and withdrawing cryptocurrency. Binance recently added support for the South African Rand, enabling the purchase and sale of cryptocurrency from South African Bank accounts. The move will further cryptocurrency adoption on the African continent.
Binance has grown from a crypto-swapping platform to one of the world’s largest cryptocurrency exchanges. The name has also become synonymous with efforts to improve cryptocurrency adoption globally. From a cryptocurrency education tour in Francophone Africa, to a Guinness World records listing for the largest in-person crypto lesson, Binance plans to acquire a global bank to facilitate crypto adoption.
Binance adds Nigerian Naira fiat payments gateway
Binance announced via Twitter and their website that it would now provide a Nigerian Naira fiat payments gateway. This means users in Nigeria can now deposit and withdraw to or from their Binance wallets in Nigerian Naira.
This removes a significant hurdle for Nigerians who want to use Binance. They can now transact directly from their Naira-denominated accounts to buy cryptocurrency on Binance. No need for currency conversion or additional fees.
This makes the NGN the second African currency to receive red-carpet treatment from Binance in 2022 after the South African Rand was given the same treatment just a month ago. The removal of hurdles such as currency conversion and additional fees will certainly shine a light on crypto adoption in Nigeria.
According to their website, this will aid their mission to increase cryptocurrency adoption and mainstream accessibility of crypto. You cannot argue with that. Nigeria is the biggest user of cryptocurrency in Africa and has one of the highest crypto ownership rates as a percentage of the population. Nigeria is also Africa’s most populous country.
The Central Bank of Nigeria may not look at this move as favourably as crypto-loving Nigerians. Nigeria’s Central Bank Digital Currency (CBDC), the eNaira, recently turned 1 year old but has not received the best of Nigerians’ reception. While Nigeria is interested in crypto, which is under an implicit ban, they have shown no love for the eNaira.
Nigeria could become African Crypto King
Nigeria ranked third (behind South Africa and Kenya) in Africa for crypto ownership as a percentage of the population. This flies in the face of the country’s implicit ban on cryptocurrency. More importantly, Nigeria was only one of three African countries to have a crypto ownership rate above 5 per cent.
Consider that South Africa and Kenya do not have bans on cryptocurrency trading or ownership, whereas Nigeria does. While this does not amount to lifting the ban, simplifying the process of buying and selling crypto could see a reasonable surge in cryptocurrency adoption in the country. It will be interesting to see if they can dethrone South Africa, which recently officially recognized cryptocurrencies as digital assets.
With the rate at which Binance is making moves, it is not inconceivable that they may add more African currency payment gateways to their app and platform. For now, we should expect a surge in Nigerian cryptocurrency users thanks to the ease of access that the Nigerian Naira payment gateway introduces. One can’t help but wonder what this will mean for Africa’s first CBDC, the eNaira. Will the threat of simplified cryptocurrency adoption prove fatal, or will it provide a teachable moment for the Central bank of Nigeria?