Bitcoin Benefits from Nigerian Central Bank's International Credit Card Ban

Recently, the Central Bank of Nigeria issued an order prohibiting its citizens from using foreign credit and debit cards. Although this is only a temporary measure, it has still caused a series of problems and brought difficulties to local commercial banks. The real reason why the Central Bank of Nigeria made this decision is still unclear, but can this bring new opportunities for the development of Bitcoin in the local area?

The central bank’s new decision led to a depreciation of the local currency

Although the ban will take effect on January 1, 2016 , its impact extends far beyond traditional commerce. Without the ability to pay with credit cards, Nigerians have been forced to turn their attention away from foreign online e-commerce and towards domestic physical stores .

Analysts pointed out that this harsh decision was mainly due to Nigeria's increasingly severe financial situation. Due to the decline in international crude oil prices, Nigeria has lost a lot of fiscal revenue and its currency has begun to depreciate. Oil exports are Africa's largest source of economic income. Although the government has made efforts to boost its economy, the outlook does not seem optimistic.

Like most other African countries, Nigeria has a small “rich class” that makes up a small percentage of the total population, while the rest of the population barely makes ends meet. The rich regularly travel abroad to shop, and of course, they usually use credit cards to complete the transactions. The central bank’s decision poses a problem for them.

Bitcoin's Huge Opportunity

Needless to say, the financial turmoil in Nigeria has undoubtedly created a good opportunity for the prosperity of Bitcoin. Unlike credit cards and legal tender, Bitcoin is not issued and controlled by the central bank, so it can be circulated in Nigeria as a foreign fund.

The current situation in Nigeria is a microcosm of the fractured global financial ecosystem. In fact, Bitcoin can be used as a universal digital currency around the world. In addition, the cost of cross-border payments using Bitcoin is much lower than traditional payment methods.