According to local sources, the operators of the Bureau de Change (BDC) in Abuja have indicated that they would be shutting down operations owing to the shortage of dollars.
Analyst and legal representative from Nigerian Web3, Kue Barinor Paul, has said that the P2P cryptocurrency market in the country is not to blame for the closure of the Bureau De Change (BDC) chapter in the nation’s capital.
Nigerian currency dealers, also known as Bureau De Change (BDC) operators, have reportedly declared that they would be closing their Abuja operations owing to a lack of dollars, according to local media. The currency merchants allegedly mentioned that crypto P2P was to blame for its issues.
While highlighting the insignificance of cryptocurrencies in Nigeria’s FX operations, Paul told Cointelegraph that the accusations are without merit. He said that the country’s dependence on imports and price variations are more substantial causes of foreign exchange shortages.
According to Paul, there is no direct rivalry between the BDCs and the crypto industry since BDCs deal in real funds whereas crypto transactions are carried out online with digital assets like stablecoins. Instead of addressing the root causes of the illiquidity problem, he said that the crypto P2P market should be held responsible.
The CBN prohibition in 2021 made Nigeria the largest peer-to-peer market globally. Nevertheless, the crypto restriction was removed from Nigerian banks that processed cryptocurrency transactions in December 2023, according to a letter addressed to all banks in the country.
Foreign currency (FX) transactions may be complicated, and many Nigerians find it difficult to use regular banking services. Paul pointed out that the banking industry now charges much greater costs for moving foreign cash than the crypto market, which makes crypto P2P the more convenient choice.
Rume Ophi, a crypto analyst from Nigeria, supported Paul’s sentiments, saying that the cryptocurrency market facilitates more widespread use of foreign currency and helps ordinary Nigerians protect their currency from inflation.