It’s Time to Adopt the New Paradigm: Why Nigerian Businesses Should Own, Accept, And Pay with Crypto

Africa is home to many unemployed adults exploring new ways to make money and embracing the promise of evolving financial technologies. With the blockchain system, individuals can work remotely for an employer from another country, which gives equal opportunity to everyone and earn the necessary money to pay for housing, food, and so on.

Only a tiny percentage of the Sub-Saharan population has access to a formal bank account, and cryptocurrency bolsters financial inclusion, with services delivered via mobile phones. Peer-to-peer transactions are more common in Africa than anywhere else, which translates into the fact that many people have integrated crypto coins into everyday life. It doesn’t come as a surprise, given that local fiat currencies depreciate against the dollar. 

As the usage of digital assets continues to spread from country to country, Africa is slowly but surely becoming the next frontier for cryptocurrency. Nigerians are amongst the most enthusiastic as far as crypto adoption is concerned; for many, it’s the primary choice for the storage and transfer of assets.

Until now, Binance has offered free beginner-level courses to over 400,000 Africans to help them pursue crypto literacy on topics ranging from the best way to buy Bitcoin to what role blockchain will play in Web 3. Even if the eNaira can be transferred or exchanged using blockchain technology, just like Bitcoin, Nigerians’ passion for blockchain doesn’t extend to the central bank offering. 

Nigerian Businesses Can’t Afford to Keep Ignoring Crypto 

Despite the fact that Nigeria accommodates young professionals and aspiring entrepreneurs with a wide array of innovation skills, some organizations are still reluctant to implement blockchain technology. The most significant obstacles holding businesses back from owning, accepting, and paying with crypto are the lack of information, intricacy, and skills deficit, to name but a few.

Regrettably, there are no quick fixes to these issues, meaning it takes time and patience for organizations to see value in investing in the technology. Due to the high adoption rate of blockchain technology, it’s only a matter of time before crypto goes mainstream in Nigeria, so it makes sense for companies to act now. 

Bitcoin isn’t the only virtual token available, so it’s important to look into other options, such as Ethereum, Cardano, Dogecoin, Tether, and Ripple, which haven’t fulfilled their potential yet. The list of potential benefits that companies can derive from saying yes to crypto is long. Here’s a brief summarization of the business benefits of cryptocurrency: 

  • Reduce transaction costs. Transaction costs produce a considerable effect on the economic efficiency of small and medium-sized businesses in terms of operating activities. Enterprises accepting crypto can deal directly with customers. Since there’s no intermediary involved, the costs are extremely low; higher fees are rarely needed to complete a transfer. Attention must be paid to the fact that fees vary depending on whether payment is accepted to a personal wallet or a third-party provider is deployed. 
  • Protect customer privacy. Sensitive data can result in identity theft, financial fraud, and other issues that collectively cost customers and companies. It’s necessary to build privacy that works for everyone. Crypto transactions ensure anonymity, helping users conceal their identities and making the business attractive to prospects. In spite of sophisticated encryption and privacy features, it’s impossible to guarantee full anonymity because the transactions are accessible on the public ledger. 
  • Boost reputation, sales, & bottom line. Anyone who’s ever used crypto to pay for goods and services can confirm that it’s the most straightforward way to perform a transaction. Crypto can, therefore, be a brand-building tool if used properly. More exactly, it’s possible to reach new audiences, opening up the business to an entirely new market. By building on a more relatable brand proposition, organizations can build trust, advancing in the industry. 

In The Near Future, Nigeria Will Recognize Crypto as Legal 

Nigeria has had a conflicting relationship with crypto, but it’s nothing new. In 2021, the Central Bank of Nigeria imposed a ban on all individual and business users of digital assets, so people began trading Bitcoin peer-to-peer. The factors behind crypto usage included a lack of access to traditional finance, the depreciation of the naira, and, last but not least, inflation. In defiance of regulators’ attempts to limit access, crypto users found new methods of making transactions. When the eNaira was launched, officials hoped it would promote financial inclusion, but citizens don’t want the government-backed crypto. It’s only managed to obtain a 0.5% adoption rate. 

Now, the Central Bank of Nigeria and the Securities and Exchange Commission want to recognize Bitcoin and other cryptocurrencies as capital for investment to keep up with global practices. The capital market has undergone numerous changes lately, and key developments will be reflected in the new act.

Regulation means more stability, which protects investors and doesn’t pose a threat to decentralization. Fraudulent activity can be prevented within the crypto ecosystem, not to mention that clear guidance will be provided to allow companies to innovate in the new economy. Repeated and recent evidence suggests that crypto has become more widely used for investment purposes, the limited supply creating an incentive that encourages users to stock on coins. 

The robust regulatory framework that will soon be put in place will safeguard the financial system and the generality of Nigerians (particularly the younger population) from the risks inherent to digital assets. Authorities will do everything within their power to educate the population to avoid fraudsters and speculators, but it’s recommended they take learning into their own hands.

Final Thoughts 

Even if crypto won’t go mainstream and replace fiat currencies, it’s still a good idea to accept various payment options since more people are going cashless. There are several web-based tools that help enterprises build websites with the capacity to accept Bitcoin, Ethereum, and so forth, so it’s not necessary to have coding skills to design for the web. There’s no better time than now to integrate futuristic technologies such as blockchain, so make sure you’re prepared for the eventuality that crypto becomes the norm.

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