Nigeria’s Cash Chaos Reaches Boiling Point, Underscoring Bitcoin Need

As Nigerians protest the inability to withdraw cash, it should be clear that the country has a Bitcoin-Alternative needs.

This is an opinion editorial by Ray Youssef, a founder and CEO of Paxful and a founder of the Built With Bitcoin Foundation.

The liquidity crisis in Nigeria is reaching a boiling point as 54% of its currency is no longer in circulation. Earlier this month, I wrote about the deadline for the old naira (₦) banknotes to be given away, the scarcity of the new redesign, and the struggle people had to go through to get their hands on the new currency.

But a lot has changed since then

Lines have turned into protests and people are at their breaking points. This chaos comes from confusion. People don’t understand who to turn to when they hear different stories from the Nigerian federal government, the Supreme Court, the Central Bank of Nigeria (CBN), some state governments and the banks.

Last week the Supreme Court announced that the old £200, £500 and £1,000 notes would be valid until February 22 – when the court will select the case for a full hearing. The next day, Nigerian President Muhammadu Buhari ordered CBN to allow old £200 notes to be used until April 10. The President is retiring the old £1000 and £500 notes. Some state governors are siding with the Supreme Court on the federal government and CBN. For example, governors in Lagos, Kaduna and Ogun have openly encouraged Nigerians to continue using the old £200, £500 and £1,000 notes.

Adding to this confusion, CBN is running out of paper to print the redesigned notes, and some believe the banks have been stockpiling new notes – only allowing access to the wealthy and well-connected.

This has caused chaos

Main roads in Ibadan, Oyo state, have been blocked by bonfires and protests over the delay of the new banknotes. In Warri, Delta State, people took to the streets burning ATMs finally. In the Ojota area of ​​Lagos, a fight broke out between commuters and car park workers over the collection of old naira bills. I can feel their desperation and unrest – I felt it when I marched against corruption in Tahrir Square during Egypt’s 2011 revolution.

This money is not play money. Nigerians need naira to buy food at the market and take it to work. Her whole life has been disrupted. And all of this comes less than a week before the country’s general election in 2023. I pray that the election can still take place this Saturday and that people can vote safely.

My hope for the future

The supposed ease of the centralized currency falls apart when one sees what is happening in Nigeria. It’s a terrible situation and a sad but real use case for Bitcoin.

My plea is to draw more attention to what is happening in Nigeria. I love this bitcoin community and hope this opens more eyes to why countries like Nigeria desperately need another alternative – not because they need another investment asset, but because their future depends on their success. I hope we can all stand with the people of Nigeria as they push for change and prosperity.

This is a guest post by Ray Youssef. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.