Recent closure of account holders of Cryptocurrency by the Central Bank of Nigeria (CBN) has forced down the volume of transactions on Bitcoin by 43per cent.
Before the drop, Nigerians posted weekly P2P volumes of about $9.4 million, followed by Kenyans and South Africans with nearly $2.8 million and $1.8 million respectively.
Peer to peer in BTC refers to an exchange of BTC between parties (such as individuals) without involving a central authority. Peer to peer exchange of Bitcoins between individuals and groups takes a decentralized approach but still, a growing number of Nigerians use their banks to settle in cash while carrying out their P2P trading.
Banking regulators appear to be closing accounts of residents and companies that trade cryptocurrencies as part of a broader plan. Banks were previously forbidden by the central bank from servicing crypto exchanges earlier this year. Among the reasons given for the restriction were volatility, money laundering, and terrorism financing.