Crypto
Crypto: Peer-to-peer trading is worth $500bn in Nigeria – Cryptocurrency expert
The Chief Executive Officer of one of the leading cryptocurrency platforms in Nigeria, NoOnes, Ray Youssef, has revealed that peer-to-peer popularly known as P2P is probably like $500bn business in Nigeria alone.
Youssef said this in an interview with Techpoint Africa on the heels of an imminent ban on cryptocurrency in the country.
Speaking on the astronomical P2P transactions on Friday, the NoOnes boss asserted, “Peer-to-peer is probably like a half a trillion dollar business inside Nigeria alone. That’s the truth. Officially, cryptocurrency volume in Nigeria is at $59 billion a year, and that’s just all the official volume of everything that is happening on centralised exchanges that can be tracked on the blockchain. Yeah, let’s say $59bn to $60bn.
“That’s a joke; the real volume is ten times more than that. That’s peer-to-peer, and that’s not just volume that has happened.”
Youssef added that most of the P2P transactions do not happen on Binance or any other platform but on WhatsApp, Telegram, coffee shops and everywhere on the streets.
“Most peer-to-peer doesn’t happen on Binance P2P or NoOnes or any of these other platforms. They happen on WhatsApp, Telegram, the coffee shops, everywhere on the streets. That’s where most peer-to-peer is really happening. And in fact I would even say $60 billion going through the centralised exchanges. I think most of that is actually peer-to-peer volume they are kinda covering up too because Nigerians are very crafty and have ways to use things for things they weren’t necessarily mean’t to be used for,” he maintained.
Recall that in February 2021, the Central Bank of Nigeria issued a circular to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and OFIs to close accounts of persons or entities involved in cryptocurrency transactions within their systems.
But the administration of President Bola Tinubu lifted the ban directing all banks and OFIs to carry out cryptocurrency services with with the provisions of the guidelines to regulate the activities of virtual assets service providers.
The aftermath of the ban was the discovery by CBN that crypto traders use peer-to-peer trading to manipulate the naira via a pump-and-dump strategy.
In February 2024, the Central Bank Governor, Olayemi Cardoso, claimed $26 billion in untraceable transactions were processed by Binance.
This led to a crackdown on the global exchange Binance and the freezing of over 1,000 bank accounts involved in peer-to-peer transactions.
However, Nigerians, especially the P2P traders have begun to express displeasure at the new development by the Federal Government as many believe that cryptocurrency is legal and should not be seen as a factor behind the naira weakening.
A user, Kalu Aja, wrote in a thread on his handle, @FinPlanKaluAja2, “The Nigerian economy is slowing grinding to insignificance.
“The economy is dying. The policymakers (Central Bank of Nigeria) know and are already warning with specificity.
“The political class response is to divide and distract.
“Guys I am not being alarmist; the economy is failing, it’s not my data or analysis.”
He claimed that economic activity has been contracting for eight consecutive months, mainly due to exchange rate pressures, rising input prices, security challenges, and others.
He added that the Composite Purchasing Managers’ Index declined sharply to 39.2 index points in February 2024 from 48.5 index points in the previous month.
He continued, ‘Both food and core inflation rose in February 2024, underpinning an acceleration in headline inflation to 31.70 per cent in February 2024 from 29.90 per cent in the previous month. This continued rise in inflation was mainly due to high production costs, lingering security challenges and exchange rate pressures,
“All quotes from CBN. Is this an environment that can attract FDI? When are Nigerian companies already in Nigeria not buying or investing?
“Abuja, we have a problem.”
Another user, who tweeted with @trendwithola, said, “So the Central Bank of Nigeria still feels cryptocurrency is the cause of Naira woes?
“Naira will keep trailing 1 USD, 1 GBP, 1 CAD if the right thing is not done.
“@cenbank should stop chasing shadows. You had better get your economic policies right. Don’t just copy and paste. Get a blueprint from the man wey sabi, Peter Obi or leave office,” she added.
“Rather than battling against cryptocurrency, why isn’t the Central Bank of Nigeria focused on leveraging the system to their advantage? Why not concentrate on regulating it for beneficial use? After all, you can’t dismantle what you haven’t built,” a user with the handle @Themytea2 submitted.
Recently, at least three Nigerian fintech startups, including Moniepoint, Paga and Palmpay, have threatened to block the accounts of their customers dealing in cryptocurrency and report those transactions to law enforcement agents after the National Security Adviser classified crypto trading as a national security issue.
That designation means a new crypto regulation that will ban peer-to-peer trading of cryptocurrencies is in the works, said Tosin Eniolorunda, the CEO of Moniepoint.
There are also growing concerns that a regulation to ban p2p trading may soon be made public.
Key Takeaways
- The yen fell to 162.27 per dollar on June 30, its weakest level against the greenback since 1986.
- A wide rate gap, the BOJ at 0.75% versus the Fed’s 3.50%-3.75%, keeps pressuring the currency.
- Japan spent a record 11.73 trillion yen ($72.4 billion) on intervention from late April to late May.
A Four-Decade Low
The yen’s slide to a four-decade low has put Japanese authorities back on intervention watch. The currency has been dragged down by a persistent interest-rate gap between Japan and the United States, heavy speculative short positioning, and the limited staying power of Tokyo’s earlier efforts to prop it up.
The mechanics are straightforward given the Bank of Japan (BOJ) typically holds its policy rate at 0.75%, while the U.S. Federal Reserve’s target sits at 3.50% to 3.75%. That spread rewards investors who borrow cheaply in yen and park funds in higher-yielding dollar assets, a so-called carry trade that steadily pressures the Japanese currency.
Japan’s Finance Minister Satsuki Katayama signaled Tokyo’s readiness to act, saying the government was prepared to take appropriate action against excessive currency moves.
Intervention Has Already Failed Once
Tokyo has been here before and recently Japan launched its first yen-buying operation in nearly two years (after the currency punched through the politically sensitive 160 level). Authorities then spent a record 11.73 trillion yen, about $72.4 billion, defending the yen between late April and late May, only to watch it weaken again.
That track record is why traders doubt a fresh round would hold because the forces dragging on the yen are structural, rooted in the rate gap rather than short-term sentiment, and intervention can slow the slide without reversing it. Markets are now watching whether a move toward the 160-to-162 range triggers another defense from the finance ministry.
Where Does Crypto Fit Into All This?
A depreciating home currency has historically nudged some Japanese savers toward alternative stores of value, and bitcoin sits among them. Japan is one of the world’s most active retail crypto markets, and a yen losing ground against the dollar strengthens the argument that scarce, non-sovereign assets can hedge currency risk. Bitcoin priced in yen has tracked far higher than its dollar quote, mirroring the currency’s erosion over time.
The pressure also feeds into global risk appetite since a weaker yen can unwind carry trades suddenly when sentiment shifts, a dynamic that has spilled into crypto and equity markets before, sending leveraged positions scrambling.
In any case, the immediate question is whether Tokyo intervenes again or lets the slide run. With the rate gap unlikely to close soon, the Fed has held rates elevated while the BOJ moves cautiously. That said, the yen’s path ahead depends heavily on the next moves from both central banks and until that spread narrows, the currency’s weakness looks set to persist.
OHIO — The Ohio Department of Commerce Division of Financial Institutions issued a consumer alert on Monday for Ohioans who have used cryptocurrency ATM kiosks operated by Bitcoin Depot Inc.
The alert follows Bitcoin filing for bankruptcy last month in the U.S. Bankruptcy Court for the Southern District of Texas. Since the filing, it has shut down its ATM network, meaning consumers may be eligible for outstanding funds.
Bitcoin previously operated in 33 states, including Ohio, holding money transmission license number OHMT 263 with the division.
A Bitcoin ATM is a physical kiosk allowing people to buy or sometimes sell cryptocurrency, usually using cash or a debit card, but unlike a traditional ATM, it does not connect to a bank account. Instead, it transfers cryptocurrency to a digital wallet or an address the user provides.
“In the past year, Bitcoin Depot processed 10,637 individual transactions in Ohio across at least 50 machines,” the division said in a news release. “Any Ohioan who believes they may have been impacted by a scam involving these machines is encouraged to file a claim.”
There are 32 consumers who are owed a total of $90,907 in refunds, ranging from $18 to $43,000. These individuals will be contacted directly, but the division is calling attention to the situation to ensure any other Ohioan who used the service is aware of the potential refund.
Those who believe they are owed money, or who have an outstanding claim with Bitcoin Depot, can file a claim through the bankruptcy case. They can also call the company’s restructuring hotline at 844-339-4117 (Toll-Free U.S./Canada) or +1-332-232-7827 (International), or email BitcoinDepotInfo@ra.kroll.com.
Before filing a claim, consumers are encouraged to gather all recepts, transaction records and supporting documents.
For additional information, contact the Division’s Office of Consumer Affairs via email at web.dfi@com.ohio.gov or call 614-728-8400.
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