Nigeria has emerged as the global leader in cryptocurrency ownership, according to the second annual Global Survey conducted by ConsenSys, underscoring the country’s growing dominance in digital assets despite regulatory concerns and economic challenges.
The survey, released on Monday, revealed that 73% of Nigerians own cryptocurrencies, the highest percentage worldwide. Other leading emerging markets include South Africa at 68% and the Philippines at 54%, reflecting strong cryptocurrency adoption in developing economies.
This compares favorably to South Africa (74%) and the Philippines (61%), underscoring Nigeria’s leading position in both education and understanding of Web3 technologies, such as decentralized finance (DeFi), staking, and non-fungible tokens (NFTs).
Notably, 75% of respondents expressed fears about the potential for artificial intelligence (AI) to exacerbate fraud and disinformation. However, 54% believe that blockchain technology can address these issues by offering greater transparency and accountability.
Speaking on these trends, Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, emphasized the significance of blockchain technology:
“It is impossible to overestimate the crucial role that blockchain technology and decentralization play in improving privacy, trust, and transparency in the way our data is handled. The adoption of Web3, blockchain, and cryptocurrency has accelerated recently, with 2024 being a key year.”
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Lubin added that a shift toward clearer regulations, particularly following the recent U.S. presidential elections, has also boosted market confidence, potentially paving the way for a more favorable environment for digital assets globally.
For many Nigerians, crypto assets provide an opportunity to earn and preserve value amid economic uncertainty. Chainalysis, a blockchain analytics firm, estimates that 33% of Nigerians currently invest in cryptocurrencies, placing the country second globally in crypto adoption behind India.
Nigerians in the diaspora also utilize crypto as a faster and cheaper alternative to traditional remittance channels, bypassing high fees and delays associated with banks and money transfer services.
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Despite its popularity, Nigeria’s crypto boom has raised concerns among policymakers who argue that the rapid adoption of digital currencies could undermine the struggling naira and weaken state control over financial systems.
The government under President Bola Ahmed Tinubu has adopted a mixed carrot-and-stick approach. While the Securities and Exchange Commission (SEC) has introduced regulations for a handful of local crypto exchanges, stringent policies have forced at least three major cryptocurrency companies to exit the Nigerian market this year.
The growing appetite for cryptocurrencies coincides with a surge in Bitcoin’s value, which climbed to a record $106,000 on Monday. Analysts attribute this rally to expectations of a potential interest rate cut by the U.S. Federal Reserve later this week.
Bitcoin has recorded a 50% increase since the U.S. elections and is up 145% year-to-date, driven by hopes of a more crypto-friendly regulatory environment under the incoming Donald Trump administration. Speculation around the creation of a national strategic Bitcoin reserve in the U.S. has further buoyed investor optimism.