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Stablecoins in Nigeria for International Remittances

If you’ve ever exchanged dollars or any other currency to naira or vice versa, you’ve probably noticed the significant money lost during the exchange process.

Posted October 6, 2020

Illustration of money transfer between two devices
Illustration of money transfer between two devices

If you’ve ever exchanged dollars or any other currency to naira or vice versa, you’ve probably noticed the significant money lost during the exchange process to third parties such as banks and money transfer institutions. However, this wouldn’t be the case with Stablecoins.

This reality demonstrates the volatility that the global currency system faces. A similar fate is experienced by some digital-money systems (such as Bitcoin); thus creating an environment that is not supportive of vital financial functions, and also presenting a poor choice for remittance operations.

The good news is that investors and private individuals who wish to save, send, and exchange money without incurring costs associated with currency volatility and slippage, can still do so through “Stablecoins”. 

What are Stablecoins?

Stablecoins are digital currencies pegged to a specified quantity of physical assets, such as central bank notes, commodities, and other cryptocurrencies held in reserve by the issuing entity.

What advantages does Stablecoins offer?

Stablecoins offer the advantage of price stability compared to other crypto assets. They can also serve as a hedge to local currency fluctuation.

Stablecoins pegged to central bank currencies offer the advantage of relative price stability when compared to other crypto assets, hence making them ideal for cross border payment and international trade. It can also serve as a hedge to local currency fluctuation. But most importantly, it gives people direct control of their financial assets as it can be held within an individual’s digital wallet and transferred at ease without any middleman and with minimal transaction fees. Lastly, it can also assist governments in tracking illicit payments as transactions can be audited on the blockchain.

Using Stablecoins for remittance

By definition, a remittance is simply money transferred or sent to another recipient party, usually overseas. A common example is personal money transfers made to family and friends back home by a relative living abroad. Conventionally, this is done via wire transfers, electronic payment systems, mails, drafts, or even checks. 

Image of hand extending out holding a pile of coins to depict an act of remittance through stablecoins.

A report by PricewaterhouseCoopers indicates that in 2018, migrant remittances to Nigeria equaled USD $25 billion, representing 6.1% of Gross Domestic Product. In 2019, data from the Central Bank of Nigeria indicated that Nigeria received USD $17.57 billion in direct Diaspora remittances. These figures show the frequency of circulation of assets or money, around the world, with migrants playing an integral role in this. 

With that said, how does one go about making those transfers and exchange of funds with minimal cost to friends and family? On top of the current performance of naira against the dollar in the international currency market in the face of unprecedented uncertainty brought forth by COVID-19. The answer lies in Stablecoins, which can be purchased through Easy Crypto. 

Easy Crypto Nigeria offers instant exchange of Stablecoins for naira with no hidden charges and a 24-hour settlement and customer care services. We also accept payments via credit card or bank transfer. Additionally, we give you a safe platform to buy and sell over 30 crypto assets including Stablecoins like TUSD, USDC, USDT, and BUSD. Not to mention that Easy Crypto is a 5-star reviewed institution on with highly favorable reviews.

On a closing note, cryptocurrency has been steadily on the rise to becoming a reliable and trusted alternative for transactions in Nigeria, as well as around the world. Make sure to stay informed in order to stay ahead of this growing trend in the near future. 

To purchase or sell your Stablecoins and other crypto assets in Nigeria, visit our website today on Easy Crypto.

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Last updated November 23, 2021

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