Nigeria tops global crypto data –Report

Nigeria is the most crypto-savvy nation ahead of the United States and European countries, a new survey has shown. According to a new report from YouGov and ConsenSys, Nigeria’s crypto awareness stands at 99 per cent as the country leads in digital asset knowledge and perceived investment drive. 15,158 survey participants aged 18- 65 were polled from 15 countries to determine the global acceptance of Web3 and how its utility and “technicalities” have been broken down to give a clearer insight into the future. Per the data, 99 per cent were fully aware of cryptocurrencies while 70 per cent understood the value, operations, and fundamentals of blockchain technology. Nigerian participants (1,001) also view digital asset investments as viable with 90 per cent considering such investments over the next 12 months despite the country’s top bank’s uncertain crypto stance. The majority of Nigerians have turned to cryptocurrency as a hedge against inflation in recent years after a poor performance of the naira coupled with double-digit inflation. 65 per cent of participants viewed virtual currencies like Bitcoin (BTC) and stable coins as tools against a weakening local currency. On regulation, 50 per cent of participants want the government to provide clarity in the industry with new rules amongst others while 40 per cent called for more laws to protect investors. On ownership, 76 per cent of Nigeria participants own or previously held top assets like Bitcoin (BTC), Ethereum (ETH), USD Tether (USDT), Litecoin (LTC), etc. Globally, both crypto awareness and adoption seem to have surged over the last 12 months. While 78 per cent of Nigerians were blockchain-savvy, South Korea indicated 63 per cent with South Africa at 61%. Brazil and India recorded 59 per cent and 56 per cent respectively. Overall, the survey indicates a positive perception of the digital asset market and related technologies amidst harsh market conditions. Despite the collapse of FTX and the Terra network last year which wiped off billions from the market cap, eight per cent of respondents viewed cryptocurrencies as related to scams while 31 per cent viewed it as the future of money and an alternative to traditional finance. Over 50 per cent of global respondents also view recent bankruptcy declarations by firms as market-induced without affecting their overall trust in the sector. In the United States, over 50 per cent have a clear understanding of digital assets while a similar percentage has owned assets in the past with 43 per cent on course to invest in the industry over the next 12 months. Figures were slightly lower in Germany with 40 per cent having explicit knowledge of the sector with 14 per cent as previous owners while 16 per cent currently own digital assets.Nigeria’s high numbers come against harsh positions from the government and an uncertain regulatory framework. In 2021, the Central Bank of Nigeria prohibited digital asset ownership citing investor protection concerns with the previous government issuing harsh statements on the market before floating its Central Bank Digital Currency (CBDC), the enaira.The recent amendment of the Financial Act (2023) recognizes virtual currencies as a taxable asset class leading to speculations on a potential change in regulatory approach.