Barriers against early adoption of Bitcoin in Nigeria

Dorcas Agbogun

November 24, 2020 3:30 PM

Now boasting 11 years in existence, Bitcoin continues to grow - challenging the traditional financial system and championing a new era in currency.

Barriers against early adoption of Bitcoin in Nigeria

However, the potential of Bitcoin and cryptocurrency in general is at its infancy and still faces major obstacles. In Nigeria, the situation is very complicated.

Despite ranking number one in Africa in peer-to-peer Bitcoin payments, Nigeria still remains an unclaimed territory for cryptocurrency.

In this article, we look specifically into three barriers of Bitcoin adoption in Nigeria.

Lack of Public Confidence

Bitcoin suffers a negative perception in Nigeria, seen mostly as either a ruse or a financial venture not to be trusted.

For many, these skepticism can be traced to their real experience with ponzi schemes, fake cryptocurrency programs and the prevalence of internet fraud in the country. Unfortunately, in many of these fraud cases, there is a lack of education and sometimes desperate greed on the victim’s part.

And now, Self-regulatory bodies like Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) are taking up the responsibility to ensure consumer protection against scammers.

Limited Commercial Acceptance

For a lot of users in the cryptocurrency community, there is only a motivation to accumulate Bitcoin only for its speculative value without an intention to actually spend it in everyday transactions.

This is because the number of spending options for a currency like Bitcoin that is not yet widely accepted in commercial points can be pretty slim. Leaving Bitcoin owners to mostly engage in peer-to-peer exchange without exploring its commercial versatility.

With cryptocurrency startups like Patricia building and multiply Infrastructures within the country that encourage seamless e-transactions like Bitcoin debit cards, Bitcoin payment gateways and simple solutions like Patricia Refill which allows bitcoin owners buy data, airtime and pay bills, we can expect to see a mass adoption of Bitcoin as a real means of commercial exchange.

Worries About Liquidity

Although Bitcoin boasts of the convenience of being entirely online without a third-party gateway, accessibility is still one important quality for mass adoption to happen. In this case however, Bitcoin accessibility refers to how it can quickly be converted to cash on demand. As an asset, investors in Bitcoin need the assurance of quick convertibility.

This is one reason why Patricia launched its Bitcoin-to-Naira ATMs, its Naira Debit Card for Bitcoin owners, and a payment solution which allows business owners to receive Bitcoin from customers and get settled in their local currencies.

Notwithstanding the barriers, the future of Bitcoin in Nigeria looks much brighter than ever before.

And through public education, providing secure exchange platforms and most importantly, innovatively integrating practical daily activities with cryptocurrency use, Patricia, Nigeria’s biggest cryptocurrency company is certain that a revolution is certainly around the corner.

Curious about how you can adopt Bitcoin in your daily transactions? Visit mypatricia.co.

*This is a featured post.

Dorcas Agbogun