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Impact Of Crpto OTC On Business And Finance In Africa - Business - Nairaland

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Impact Of Crpto OTC On Business And Finance In Africa by Yungsam1(m): 2:58am On Mar 10, 2022
Impact of Crpto OTC On Business and Finance In Africa!

Among all other reasons including financial market underdevelopment and high inflation rates as well as economic hardship, Africans, most notably Nigerians and Kenyans, are constantly adopting crypto trading for their businesses and to defend their savings against the rapid and continuing depreciation of the many African currencies (the Naira being a particular case of study) and to beat FOREX bottlenecks in sending payments to and receiving payments from abroad.
Interestingly, in spite of the Central Bank of Nigeria’s ban on crypto trading in March 2021, Nigerians have continued to store their value in crypto assets and have even increased the volume of their crypto-based assets and transactions.

A Nigerian artist and business man, Sly Megida, speaking about how crypto over-the-counter (OTC) has affected his business and finances, said "The naira is digressing and we are trying to keep the value of the art," further sharing that crypto is "the currency where people don't think that I am paying too much or too less," while he spoke about the larger amounts of crypto OTC payments allow him to quietly receive.

Beaming as he spoke, he further shared that his customers from across the globe happily accepted to pay in crypto, and that has helped him to protected his purchasing power and art from depreciating along with the Naira.

For clarity, “crypto” is the short form “cryptocurrency” and cryptocurrency refers to a digital currency with verified transactions and maintained ordered by a decentralized blockchain system that uses crytography. Meanwhile, over-the-counter (OTC) trading is a way to exchange crypto that allows people to move big amounts of crypto anonymously.
With stories also abounding of how crypto OTC is also making life easy in the African logistics and freight industry, another Nigerian, art merchant, Ebuka Joseph, who started adopting cryptocurrencies last year when COVID-19 ground several businesses to zero. He has now gotten hooked even though Nigerian financial authorities disapprove.
In his own words, "Crypto just allows me to transact freely and within minutes we are done with our transactions," the man, now 28-year-old told Reuters.

As far as several Nigerians like Joseph are concerned, though, the ban only goes ti show the advantages of adopting currencies not within the central bank's control,
Chainalysis, reporting concerning African crypto, said Nigeria’s central bank ban locked many Nigerians out of traditional crypto exchanges, so they trooped to this over-the-counter and the peer-to-peer system.
Crypto OTC has had a laudable impact on the business and financial market landscapes in Africa, affording Africans large money movements and a reliable store of value.

Written by
Sam Akanimo
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Re: Impact Of Crpto OTC On Business And Finance In Africa by Chukatabra: 10:31pm On Jun 08, 2023
I agree actually. It has had its fair share of impact, especially for traders who trade really high volumes.

Didnt actually know the extent of its relevance till I stumbled across this article - https://blog.bitmama.io/what-is-crypto-otc-trading/

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