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Why Nigerians are paying a 50% premium for bitcoin

Luno’s Marius Reitz on how Nigerians are skirting their central bank’s shutdown order for bank accounts associated with crypto trading.

Bitcoin in Nigeria traded last week at a 50% premium to the price available in most other countries, after the Central Bank of Nigeria instructed banks to shut down accounts associated with crypto trading. Marius Reitz, Africa GM for crypto exchange Luno, explains what impact this has had on Africa’s fastest-growing crypto market and how Nigerians are finding ways around it.

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Strange how when they don’t understand something they try and destroy it.

Looks as though the opposite will happen to what the government hopes will happen. Hahaaa!

That 50% premium is way worse than a typical commercial bank’s foreign exchange margin 😉

In whose pockets does the 50% premium goes?

Crypto has little or competitive cost… It’s the future of money, they say.

The premium goes to the person selling the Bitcoin. They say this is how supply / demand works…

the concern is that as the price in btc goes up too much in Nigeria speculators from other countries will start to buy btc/sell it in Nigeria and then take out more currency. Speculative attack theory.

In SA at least we have enough SAns closing the price gap by round-trip of BTC, so for now we just have arbitrage opps to make a profit. If SAns lose faith in the ZAR I’d be concerned.

End of comments.

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