The Central Bank of Nigeria (CBN) banned financial institutions from supporting cryptocurrency transactions. However, the citizens have found ways to use cryptocurrencies. George Residence has become the first hotel in the country to accept Bitcoin.
Nigeria’s hotel now accepts Bitcoin
Nigeria is the most populous black nation in the world and the leading economy in Africa. Hence, it is not a surprise that it was the leader in cryptocurrency adoption in Africa. It was one of the top crypto users in the world until the CBN decided to ban financial institutions from supporting cryptocurrency transactions.
Admittedly, the move hasn’t stopped Nigerians from adopting cryptocurrencies. The adoption is growing, resulting in George Residence becoming the first hotel in the country to accept Bitcoin. George Residence, a luxury hotel which entered the Nigerian market last year, announced yesterday that it is now accepting BTC as payment for its hotel rooms.
Chief Executive Officer Yanju George announced this yesterday, stating that ‘‘we have allocated around 50% of our cash reserves to Bitcoin…We hope to increase that as time goes on. Bitcoin is the currency of the future, and it is only right that we are strongly positioned, so we do not get left behind.”
According to the CEO, Bitcoin adoption allows their customers to have a faster and more secure way to enjoy the comfort the hotel offers. George Residence partnered with Coinvest Africa, a leading cryptocurrency brokerage firm, to process the cryptocurrency payments.
George Residence is located in the Lekki area of Lagos. It provides high-end hospitality services to celebrities and business travelers in Nigeria.
Nigerians remain interested in cryptocurrencies
The CBN made it tough for Nigerians to buy and sell cryptocurrencies after banning financial institutions from supporting crypto transactions. However, Nigerians resorted to using peer-to-peer (P2P) platforms such as LocalBitcoins and Paxful. They also use the P2P feature available on Binance, which is the leading cryptocurrency exchange in the country.
The high demand for cryptocurrencies stems from the instability of the Naira, Nigeria’s local fiat currency. The currency has been devalued several times over the past six years. Furthermore, the country is suffering from hyperinflation, with the prices of foods, electronics, petrol, and others rising massively in recent years.
All these factors pushed Nigerians towards adopting cryptocurrencies. In fact, Bitcoin and others help protect their wealth from hyperinflation and constant currency devaluation.