Ray Youssef, the Chief Executive Officer of NoOnes, a leading cryptocurrency platform in Nigeria, has disclosed that peer-to-peer (P2P) transactions constitute a significant business in the country, estimated to be around $500 billion. Youssef made these remarks during an interview with Techpoint Africa, amidst discussions about an impending ban on cryptocurrency in Nigeria. He emphasized that most of these P2P transactions occur outside formal platforms like Binance, taking place on channels such as WhatsApp, Telegram, and in various physical locations like coffee shops.

The interview shed light on the scale of P2P transactions, revealing that the official cryptocurrency volume in Nigeria stands at $59 billion annually, a figure derived solely from centralized exchanges that can be tracked on the blockchain. However, Youssef suggested that the actual volume is likely ten times higher, reaching approximately $500 billion, considering the extensive informal P2P trading landscape in the country.

Youssef elaborated that despite the prominence of centralized exchanges like Binance and NoOnes, the majority of P2P transactions occur through informal channels. He noted that Nigerians exhibit ingenuity in utilizing platforms for purposes beyond their original design, contributing to the substantial volume of P2P trading in the country.

The interview also touched upon recent regulatory actions concerning cryptocurrency in Nigeria. In February 2021, the Central Bank of Nigeria issued a circular instructing banks and financial institutions to close accounts associated with cryptocurrency transactions. However, this directive was later reversed by the administration of President Bola Tinubu, allowing banks and other financial institutions to resume cryptocurrency services under certain regulatory guidelines.

Despite the regulatory changes, concerns persist regarding cryptocurrency trading's impact on the Nigerian economy. Some commentators argue that cryptocurrency is not the root cause of the weakening Naira and call for a more nuanced approach to regulation. Additionally, there are growing apprehensions about potential regulations targeting P2P trading, which could further shape the cryptocurrency landscape in Nigeria.

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