Top U.S regulator says more crypto banks coming

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Nigeria, the largest economy in Africa, has been unable to efficiently tackle its increasing unemployment rate – a ticking time bomb, if not addressed quickly. In 2020, the frontier market witnessed a rise in its unemployment rate, due to an ever-growing dependent population, reduction in the total output of goods and services, and the unprecedented COVID-19 pandemic, which negatively impacted the economy and led to job loss for thousands of Nigerians.

Data from the National Bureau of Statistics (NBS) revealed that:

  • Nigeria’s unemployment rate as at 2020 Q2 reached 27.1% — indicating that about 21,764,614 (21.7 million) Nigerians are unemployed.
  • Also, 13.9 million Nigerian youths are unemployed.
  • Youths between 15-24 years constituted the highest unemployment rate, 40.8%; followed by youths between 25 – 34 years, 30.7%.

Such unimpressive economic data can be curbed, if Nigerian regulators and stakeholders tap into the potentials inherent in cryptos, to further strengthen the development of Africa’s largest economy.

Cryptocurrencies can help tackle the numerous challenges faced in international trade by many Nigerians, who don’t have a bank account. With the help of blockchain technology, many unemployed Nigerians can utilize the tools behind crypto and blockchain to generate income, as traditional jobs steadily become outdated.

Cryptocurrencies like Bitcoin could also help the unemployed facilitate small-scale international trade. Bitcoin enables these parties to sell products in exchange for Bitcoin and a boycott of traditional e-commerce systems, which often involves having to set up a merchant account with traditional banks, coupled with its attendant charges.

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Cryptos, when fully adopted, will have a considerable impact on Nigeria, by increasing financial inclusion of individuals and companies. Particularly, by reducing the transaction fees and time, cross-border payments can be improved. This is beneficial for remittance payments, peer-to-peer lending, and international trade.

Experts discuss the utilization of cryptos to curb unemployment

In an exclusive interview with Nairametrics, Chike Okonkwo, Business Development Manager, OKEx, spoke on the role crypto can play in providing income for a substantial number of young Nigerians.

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