Ray Youssef, the Chief Executive Officer of NoOnes, one of Nigeria’s leading cryptocurrency platforms, has shed light on the staggering scale of peer-to-peer (P2P) transactions in the country, estimated to be a half a trillion-dollar industry.
In an interview with Techpoint Africa, Youssef disclosed that P2P transactions represent a substantial portion of Nigeria’s economic activity, surpassing official estimates of cryptocurrency volume. He emphasized that the true magnitude of P2P transactions far exceeds reported figures, which only account for activities on centralized exchanges tracked on the blockchain.
Youssef emphasized that the majority of P2P transactions occur outside traditional cryptocurrency platforms like Binance, taking place instead on messaging apps like WhatsApp and Telegram, as well as in coffee shops and other informal settings. He asserted that while official figures may peg cryptocurrency volume at around $59 to $60 billion annually, the actual volume is likely ten times higher.
The revelation comes amidst ongoing debates surrounding cryptocurrency regulation in Nigeria. In February 2021, the Central Bank of Nigeria (CBN) issued a circular instructing financial institutions to cease facilitating cryptocurrency transactions. However, the ban was later lifted by the administration of President Bola Tinubu, allowing banks and other financial institutions to resume cryptocurrency services under certain guidelines.
Despite the lifting of the ban, concerns persist regarding the impact of cryptocurrency trading on the Nigerian economy. The CBN has raised alarm over the use of P2P trading to manipulate the value of the Naira through pump-and-dump schemes. In February 2024, the Central Bank Governor, Olayemi Cardoso, reported $26 billion in untraceable transactions processed by the global exchange Binance, prompting a crackdown on P2P trading and the freezing of over 1,000 bank accounts involved in such transactions.
In response to the government’s actions, Nigerians, particularly P2P traders, have voiced discontent, arguing that cryptocurrency is a legal asset and should not be scapegoated for economic challenges. Social media users have criticized the government’s focus on cryptocurrency regulation, urging policymakers to address fundamental economic issues instead of stifling innovation.
