As Nigerians protest their inability to withdraw cash, it should be clear that the country needs a Bitcoin alternative.
This is an editorial opinion by Ray Youssef, founder and CEO of Paxful and founder of the Built With Bitcoin Foundation.
Nigeria’s cash crunch has reached boiling point as 54% of the currency is not in circulation. Earlier this month, I wrote about the deadline for converting the old naira (₦) notes, the lack of a new redesign and the lengths people have to go to get the new currency.
But a lot has changed since then
The line has become a protest and people are already at breaking point. This chaos comes from confusion. People do not know who to turn to when they hear different stories from the federal government of Nigeria, the supreme court, the Central Bank of Nigeria (CBN), some state governments and banks.
Last week, the Supreme Court announced that the old ₦200, ₦500, ₦1,000 notes are valid until February 22 – when the court will select the case for a full hearing. The next day, Nigerian President Muhammadu Buhari ordered the CBN to continue using the old ₦200 note until April 10. From the president, this leaves the old ₦1000 and ₦500 notes out of circulation. Some state governors are involved with the supreme court regarding the federal government and the CBN. As an example, governors in Lagos, Kaduna and Ogun have openly encouraged Nigerians to continue using the old ₦200, ₦500 and ₦1,000 notes.
On top of this confusion, the CBN has run out of paper to print the newly redesigned notes and some believe that the banks have stolen the new banknotes – giving access only to the rich and well-connected.
This Has Caused Chaos
A major road in Ibadan, Oyo State, was blocked by bonfires and protests because of the new record delay. In Warri, Delta State, people have taken to the streets, burning ATMs as a last resort. In Ojota area of Lagos, there was a fight between commuters and motor park workers over collecting old naira notes. I can feel the desperation and the unrest — just like I felt when I marched in Tahrir Square against corruption in the 2011 Egyptian revolution.
This money does not play cash. Nigerians need naira to buy food from the market and use it as fare to go to work. His whole life has been disrupted. And all this will come less than a week from the country’s 2023 general election. I pray that the elections will still be held this Saturday and that the citizens will be able to vote safely.
My Hope For The Future
The suspected ease of a centralized currency breaks down when you look at what is happening in Nigeria. A dire situation and a sad but real use case for Bitcoin.
My request is to pay more attention to what is happening in Nigeria. I love this Bitcoin community and I hope this opens up more about why countries like Nigeria need another alternative – not because they need another investment asset, but because the future will be successful. May we all stand with Nigerians as we push for change and prosperity.
This is a guest post by Ray Youssef. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.