Nigerians trust Bitcoin for financial security than banks – Report

Nigerians have more trust in Bitcoin-based systems than in traditional alternatives such as banks and government, a new report by an open-source blockchain website, Elastos, has stated.

Elastos stated in its inaugural BIT Index (Bitcoin; Innovation & Trust) that emerging markets are driving the adoption of Bitcoin, with Nigeria and the UAE leading the charge.

The report revealed that 66 percent of Nigerian respondents and 35 percent from Brazil had more confidence in Bitcoin-based systems than alternatives like banks or national governments, compared to just 16 percent in Germany and 21 percent in the UK.

The survey also revealed that 20 percent of Nigerian consumers use Bitcoin to conduct transactions at least once a day, while 67 percent would have more trust in Bitcoin to protect their life savings than traditional services like banks, local governments, and cash.

The platform claims that 1,407 self-described “tech savvy” respondents from Brazil, Germany, Nigeria, South Korea, the UAE, the UK, and the US participated in online interviews that formed the research.

A third party, a registered market research company, conducted the interviews between March 30 and April 4, 2024.

“When it comes to ensuring the integrity of online transactions, emerging market respondents also revealed their relative confidence in Bitcoin compared to alternatives,” it indicated.

According to the report, 66 percent of Nigerian respondents and 35 percent of Brazilians have more confidence in Bitcoin-based systems than alternatives, such as banks or national governments, compared to figures of just 16 percent (Germany) and 21 percent (UK), who feel the same.

Meanwhile, Elastos’ Global Head of Business Development & ESG, Jonathan Hargreaves, described the BIT Index’s inaugural findings as indicative of the role the ‘global south’ was playing in the adoption of decentralised currencies such as Bitcoin.

“The BIT Index offers a fascinating and sobering insight into the industry. The fact that over two-thirds of Nigerian consumers and a third of their counterparts from the UAE and Brazil would feel more confident entrusting their life savings to Bitcoin rather than traditional financial instruments speaks volumes about the protagonism these regions are already playing.

“In many instances, the driving factor is the absence of viable, accessible alternatives to, for instance, conduct cross-border transactions or mitigate the impact of inflation,” he said.

According to Chainalysis, a cryptocurrency research firm, Nigeria’s crypto transaction volume grew year-over-year to $56.7 billion in 2023.

Despite market turmoil in the space, the country’s crypto economy continued to grow.

On the contrary, the government has been taking strong measures to restrict and clamp down on cryptocurrency exchanges and platforms operating in the country.

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