Nigerian Analysts Set the Record Straight: Crypto Not to Blame for Bureau De Change Shutdown
Feb 4, 2024
Contrary to claims made by Bureau De Change (BDC) operators regarding the role of the Nigerian cryptocurrency peer-to-peer (P2P) market in their shutdown, Nigerian Web3 legal representative and analyst Kue Barinor Paul has refuted these allegations. According to local reports, BDC operators in Abuja cited the unavailability of United States dollars and the presence of P2P crypto exchanges as reasons for their shutdown. However, Paul explained that cryptocurrency plays a minimal role in Nigeria's foreign exchange activities, with more substantial factors like price fluctuations and the country's dependence on imports contributing to forex shortages. He emphasised that BDCs deal in physical fiat currency, while crypto transactions involve digital assets like stablecoins, making them distinct and not in direct competition. Paul asserted that blaming the crypto P2P market for BDC liquidity issues distracts from addressing the root causes of the problem.