According to a statement from the crypto exchanger, the decision to add a fiat gateway for the naira is part of efforts to increase the adoption and mainstream accessibility of cryptocurrencies in the country.
The newly launched fiat gateway will alleviate the difficulties that merchants and investors in Nigeria frequently face when trading cryptocurrency.
“Binance is pleased to announce that it has added a fiat gateway for Nigerian Naira (NGN) as part of Binance’s mission to increase the adoption and mainstream accessibility of cryptocurrency,” the statement reads.
“Users are now able to deposit and withdraw NGN to and from their Binance wallets.”
However, the company stated that all users must complete the Know Your Customer (KYC) requirement in order to make Naira deposits and withdrawals on Binance.
It is unclear whether this action means that the Central Bank of Nigeria (CBN) has lifted the ban on cryptocurrency trading in the country.
In 2021, the apex bank directed all Deposit Money Banks (DMBs), Other Financial Institutions (OFIs), and Non-Bank Financial Institutions (NBFIs) to immediately close accounts operated by entities that facilitate digital currency trading. Binance complied with the order by temporarily ceasing to accept deposits and withdrawals in Nigerian Naira in February 2021. However, the crypto exchanger promised to work out arrangements that would allow Nigerian customers to continue using the service. It announced the fiat gateway for the naira more than a year later.
Despite the CBN ban, Nigeria is one of the world’s largest cryptocurrency trading countries and Africa’s largest crypto market. The country also has one of the highest rates of cryptocurrency adoption in the world, with residents trading more than $5 million in bitcoin each month.
With the Naira continuing to fall in value, many people have chosen to hedge their assets in cryptocurrencies which will further aid the country’s growing crypto adoption rate.