Crypto Not to Blame for BDC Shutdown in Nigeria’s Capital, Analysts Say

In the wake of Bureau De Change (BDC) operators ceasing operations in Abuja, experts are stepping forward to clarify the situation. The shutdown, attributed to a dollar scarcity, had fingers pointed at the crypto P2P market. However, Kue Barinor Paul, a respected Nigerian Web3 legal analyst, argues that this is a misconception.

The Real Culprits

Paul insists that cryptocurrency’s impact on Nigeria’s forex scene is minimal. Instead, he highlights more pressing issues like price volatility and the nation’s import dependency as the true disruptors.

“Crypto P2P businesses in Nigeria are treating dollar BDC operators exactly how email did to the post office. Why use physical $$ when it’s cheaper and easier to use stablecoins like USDT, USDC? Indeed, crypto is disruptive. #CryptoRevolution 🚀💹” #bitcoin

— Thecryptopreacher. (@Rumerule) February 3, 2024

The BDCs, dealing in tangible currency, don’t directly clash with the digital transactions of the crypto world. Hence, implicating crypto in the BDCs’ liquidity challenges diverts attention from the actual dilemmas at hand.

Moreover, Nigeria’s position as a global leader in P2P crypto trade, especially post the 2021 CBN ban lift, showcases the sector’s resilience. With traditional banking fees for foreign currency transfers towering, many Nigerians find solace in the cost-effective crypto P2P market.

As digitalization forges ahead, Paul sees a potential synergy between BDCs and the digital currency domain, pending effective regulation. This collaborative approach could revolutionize how BDCs operate, marrying traditional forex activities with the efficiency of digital solutions.

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2024-02-03 20:20