Cryptocurrency: Challenges Of Business Transactions In A Digital Economy – Report

A new leeway was discovered and  paved for digital currency during the pandemic and lockdown of things globally.

Bitcoin trade had its highest spike of 30% during the national lockdown in Nigeria and the highest volume traded during the peak of the pandemic.

Bitcoin is a digital currency that was created in January 2009.

According to experts, Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized Authority.The identity of the person or persons who created the technology is still unknown.

Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power.

During the End – Sars protests in Nigeria in October 2020, bitcoin came to play when the government shut out protesters from using local payment platforms for collecting donations to support it.

The young, tech-savvy protesters quickly switched to using bitcoin, and in about a week bitcoin accounted for around 40% of the nearly $400,000 raised. It was just one high-profile example of how young Nigerians increasingly use bitcoin to navigate a complicated and restrictive banking and monetary system.

Hence the ban on cryptocurrency by the Apex bank in Nigeria, to stem the possibility of another incedent from re-occuring.

Tesla can now be bought for bitcoin, Elon Musk says

Tesla Inc. customers can now buy its electric vehicles with bitcoin, its boss, Elon Musk, said on Wednesday, marking a significant step forward for the cryptocurrency’s use in commerce.

“You can now buy a Tesla with bitcoin,” Musk said on Twitter, adding that the option would be available outside the United States later this year.

The electric-car maker said last month it bought $1.5 billion worth of bitcoin and would soon accept it as a form of payment for cars, in a large stride toward mainstream acceptance that sent bitcoin soaring to a record high of nearly $62,000.

Bitcoin, the world’s biggest digital currency, rose more than 4% after Musk’s tweet and was last trading at $56,429.

In the last five years, Nigeria has traded 60,215 bitcoins, valued at more than $566 million which, apart from the US, is the largest volume worldwide on Paxful, a leading peer-to-peer bitcoin marketplace.

Nigeria is the second largest bitcoin market on Paxful, Kenya No. 8 and South Africa, No. 10

Country              Volume $                  Country                         Volume BTC

USA                       $3,755,463,837                  USA                       535,660

Nigeria                  $566,668,692                      Nigeria                  60,215

China                     $181,329,392                      China                     20,553

Experts say, bitcoin transfers are “much cheaper and faster than using traditional money transfer operators

The company says Nigerians make up around a quarter of its customer base with 1.3 million registered accounts.

Tech investors say, In Nigeria, as banks were closed, the agency outlets recorded much higher transaction volumes. They think this shift was inevitable, and it is not a temporary pandemic boost alone but appears to be the order of the day moving forward. With all the uncertainties trailing the digital currency market, from regulation issues, fluctuations or outright ban, one may begin to wonder what the fate of Digital economy will be in developing countries with little or no technological development.