The Central Bank of Nigeria has passed a rule that leaves well-nigh Nigerian money transfer operators unable to render services to that country, making bitcoin a to a greater extent than valuable remittance tool, according to The Daily Post Nigeria. Only 3 companies – Ria, Money Gram, too Western Union – tin move proceed money transfer operations. Nigerians using these services volition convey to pay high fees for sending money across international borders. Hence, bitcoin offers a solution since it allows people to ship whatever amount anywhere at whatever fourth dimension at negligible cost, ordinarily inwards less than 5 minutes.
Fiat Remittances Cumbersome
Sending fiat currency across borders requires sending the funds from an originating banking concern through a 3rd political party that provides the money transfer service, such every bit Ria, MoneyGram or Western Union, which charges fees too often incur glitches inwards delivering the funds to the receiver.
The postulate for remittances is growing because families increasingly convey members living inwards dissimilar countries who often convey an urgent postulate of money. Parents tin move ship their children who powerfulness last studying abroad straightaway too safely.
Entrepreneurs inwards Nigeria oftentimes postulate to ship funds to concern partners inwards other countries. With bitcoin, they no longer convey to hold off days to have funds or pass a lot of fourth dimension waiting inwards work at a banking concern or an ATM.
Another Attraction for Bitcoin
The government’s crackdown on money transfer services is non the entirely attraction bitcoin offers inwards Nigeria.
The Central Bank of Nigeria also planned to ban credit too debit carte du jour purchases abroad this twelvemonth to tiresome the catamenia of unusual central out of the country, CCN reported. The key banking concern fixed the central charge per unit of measurement inwards Feb too blocked access to foreign currencies for sure as shooting kinds of imports inwards June.
The restrictions larn inwards harder to brand purchases from unusual retailers both online too piece traveling abroad. Those well-nigh probable to discovery the alter include wealthy Nigerians looking to purchase luxury items on the international market. Some luxury goods convey already larn scarce inwards Nigeria every bit a consequence of the Central Bank’s ban on using unusual central for sure as shooting imports.
Foreign Exchange Crisis Aids Bitcoin
Nigeria’s unusual central crisis demonstrates how using bitcoin tin move solve to a greater extent than or less of the monetary problems involved inwards international trade. Bitcoin becomes a promising option to the naira (Nigeria’s currency) because it makes international purchases to a greater extent than convenient for consumers piece also easing the strain on Nigeria’s unusual central reserves.
Buying bitcoin inwards Nigeria is easier than inwards another countries in Africa thanks to the Nairex electronic currency exchange. The Nairex central allows a user to central cash for bitcoin too sell bitcoin at competitive marketplace rates. Featured icon from Shutterstock.