Another country overtakes Nigeria as top Bitcoin trading nation, data shows new interest

Brazil has displaced Nigeria in Bitcoin trading, with the current top position occupied by El Salvador and Nigeria trailing in the third place.

Interest in the world's largest cryptocurrency is increasing in Brazil and has been boosted by the country's largest bank, Itau Unibanco's foray into the cryptocurrency market.

Brazilian bank begins crypto trading

The bank initially offered crypto trading services in Bitcoin and Ethereum, but its expansion into the digital asset ecosystem is based on recent happenings in crypto regulation in Brazil.

The top-tier bank's entry into Brazil's crypto market will put it in direct competition with local firms such as Mynt and Binance.

The bank operates a dual trading platform and custodian of digital assets, thus setting it apart from its competitors.

The country's president, Luiz Inacio Lula da Silva, recently signed a law taxing crypto assets held by Brazilians abroad. Nigeria's Central Bank restricted commercial banks and financial institutions from trading in cryptocurrency, clamping down on the rise in transactions.

Nigeria bars banks from crypto trading, releases eNaira

Instead, the country created Africa's first Central Bank Digital Currency (CBDC), the eNaira, to lure citizens away from core crypto trading. Analysts believe the eNaira has floundered since it was created, struggling to gain mass adoption by Nigerians.

Crypto trading gained traction in Africa's largest economy as its citizens battled high inflation, which recently hit 28.20%, a 15-year high.

Despite CBN's clampdown on crypto trading, Nigeria's crypto market has emerged as the biggest in Africa.

Nigeria remains top crypto trading country in Africa as Bitcoin rises in value

The country's crypto usage remains among the highest in Africa and developing countries, with an annual growth rate of 9%. Data from Chainalysis show that Nigeria is third on the list of six countries with consistent growth since 2021.

According to reports, Nigerians now prefer Stablecoins as they are pegged to a popular reference asset, the US dollar, as a hedge against inflation and the naira devaluation. Reports say Nigerian businesses and the diaspora population are adopting USDT and other stablecoins to make payments.

Bitcoin has spiked in price this year despite price setbacks, gaining about 150% in market value and 305% in year-on-year growth.

The world's largest cryptocurrency traded lower recently, above $41,000, while ether maintained its level despite a selloff wave, trading at $2,100.