RE: This is why Nigeria is not a cryptocurrency hotspot
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I will argue that crypto adoption is gaining momentum in Nigeria. It's left for the bug fintech companies to adopt. Crypto certainly will not be supported by the central bank of Nigeria. It is disruptive and the system doesn't want anything disruptive. Fundamentally, crypto is here to stay but the time they realise it will be too late.
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Fair point. Nigeria has the largest trade volume in Africa but that is derived from international businesses KYC data, rather than from businesess running in the country.
My view is that, while the people have embraced itz the Government and powers that be have taken a middle ground of sorts, and if you add that to the uncertainty revolving around everything in the country, it becomes an unfavorable place to establish a crypto based business.
Compare that to Seychelles where there are specific guidelines and rules set up by the government to protect these sort of businesses. In Nigeria, it is still a jungle and that means bad for business
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I hope this is the case and would love to see thousands of Nigerians on Hive and the other applications. It is something that would certainly help, I believe.
We need to target the "rich environments", areas with people who are in need of an alternative. Cryptocurency can offer that. Rich obviously does not mean wealth but, rather, those who are willing to get involved in something different...a powerful target market.
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unfortunately, there are many get-rich schemes disguised as cryptocurrency in Nigeria which has given a lot of people a wrong notion of what cryptocurrency is about.
I have invited a few friends here but they always get lost and lose interest. Hive can be a handful. For me, it is important that they know the technology exist. That knowledge will come in handle soon. With the government pushing to regulation social media activities in Nigeria, it is only a matter of time before people start pushing for decentralised solutions like hive. I talk about this briefly in my last 3speak vlog
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Hive is rather difficult to get use to but it is easier than a life of misery.
Promoting one of the DApps is a much easier sell. Such as having people come here to do vlogs on 3Speak. That is an easier sell than trying to get them to understand all the tentacles of Hive.
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The people in that situation can not afford mobile data. They’re not connected and when their mobile phone is probably generations old and may not be able to run wallets. Which is a reason why I love Hive (although it is VERY data intensive).
One error many people in crypto make (at least some years ago because the topic is less common nowadays): to include the unbanked you have to talk TO the unbanked. Not talk about them because you don’t know their problems otherwise.
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They will be hesitant to do so without regulatory framework.
Coins.ph was very early to the game and within its first months had launched in both the Philippines (its home base) and Vietnam. Only some months after being in Vietnam the country decided against crypto - ironic because Vietnam is host to thousands of solid blockchain engineers — and Coins had to pack up. Pretty much over night.
Of course, while trying to raise funding that totally ruined their numbers. In fact, they couldn’t raise international funding until the Philippines had created a holistic approving framework (third world/developing nation so everything depends on central licensing).
They are expanding internationally again, but only in countries where there is actual legal approval and they can get licensed. All that pretty much totally ruined their early entry in the market benefit.
And to expand aggressively, and reach a wide population, lots of money (read funding) is needed because user acquisition is expensive. Even worse so if telcos are the usual Goliaths who will eventually enter the market to flex the smaller one out. Even if that means merger & acquisition.
Without a legal approving framework it is VERY risky for any startup.
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I do get your point. We've seen businesses in this part crumble due to lack of proper regulatory framework. Go-okada was one of such businesses that lost millions this year after the ban on motorcycles in major cities in Nigeria.
However, I will like to see more local inclusive or should I say participation esp amongst the heavyweights companies in the Nigerian market. Everyone acts like crypto doesn't exist when in fact it is thriving. I bet if proper research is done it will show it contributes significantly to our GDP.
Infrastructure wise, Nigeria might not be the ideal location for crypto miners because of the poor electricity and cost of doing business. However, Fintech is growing in Nigeria and I believe crypto should go with the trend. Like you said proper regulatory framework is needed esp to protect local crypto businesses.
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It will happen like it happens here in South East Asia.
The new fintech startups will expand their mobile wallets. When they are good with the telco (I bet you huys have millions of mobile payments every day via SMS), and the gov seems favorable, they will include the first few cryptoes in the mobile wallet (BTC, ETH, and probably XRP because of Western Union).
As the Gov sees there's no huge issue with those, they will be lobbied for a holistic regulatory framework. With potentially more international funding coming in as "bait". Then one will eventually launch an exchange.
That's how it went here. Now we have more than 10 million local crypto wallets but majority are used just as mobile payment wallet. But he sector has been legalized. A part of it, of course, being a development nation the legal part is not always helpful either. But it's a start.
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