The collapse of Nigeria's national currency, the naira, has prompted many residents to invest in alternative assets such as bitcoin and stablecoins to preserve their wealth. Peer-to-peer exchange LocalBitcoins has seen a 258% increase in BTC purchases compared to last week's figures.
Nigeria's official currency, the naira, is going through tough times due to global economic turmoil. Within 4 weeks, it fell significantly against the US dollar, spreading fear among residents. Panic grew as the governor of the Central Bank of Nigeria warned bank clients to refrain from withdrawing naira to convert it into dollars. He stated that the relevant tracking system will monitor whether such illegal transactions are committed and punish those who do not follow the rules. The turmoil in one of Africa's leading economies has prompted many Nigerians to look for investment options that could serve as a hedge against inflation. They mainly focused on bitcoins and stablecoins.
The cryptocurrency exchange, LocalBitcoins, has also seen a significant increase in interest in the primary cryptocurrency. The latest figures showed a 258% increase compared to the previous week's numbers.