Nigeria and UAE Markets Surge Towards Bitcoin Overtaking Traditional Payment Methods
One-in-five Nigerian (20%) consumers are using Bitcoin to conduct transactions ‘at least once a day’, while 67% would have more trust in Bitcoin to project their life savings than traditional services such as banks, local Governments and, even, cash, according to new research published by Web3 infrastructure specialists, Elastos.
The inaugural BIT Index (Bitcoin; Innovation & Trust) – compiled from over 1,400 self-defined ‘tech savvy’ respondents from 7 countries across the globe* – sheds light on the actual perception and use of Bitcoin in people’s daily lives, irrespective of its current valuation. Elastos’ BIT Index is part of ongoing research to better track the ‘real world’ use of Bitcoin together with users’ motivations, expectations and barriers around the same.
In particular, the data reveals the role being played by emerging markets in terms of understanding, usage and confidence around Bitcoin. Nigerian respondents’ levels of usage and trust compare starkly with those expressed from so-called ‘established’ markets such Germany and the UK and Germany where daily usage levels are just 8% (for German respondents) and (9% for their UK counterparts).
In terms of trust – in addition to Nigeria – significant proportions of respondents from Brazil (35%) and the UAE (32%) would have more confidence in Bitcoin-based services to protect their life savings compared to those from markets such as the UK (20%) and Germany (22%).
When it comes to ensuring the integrity of online transactions, emerging market respondents also revealed their relative confidence in Bitcoin, compared to alternatives. According to the data 66% Nigerian respondents and 35% from Brazil have more confidence in Bitcoin-based systems than alternatives such as banks, or national Governments, compared to figures of just 16% (Germany) and 21% (UK) who feel the same.
Jonathan Hargreaves, Elastos’ Global Head of Business Development & ESG, described the BIT Index’s inaugural findings as indicative of the role the ‘global south’ is playing in the adoption of decentralized currencies such as Bitcoin.
“The BIT Index offers a fascinating and sobering insight into the industry. The fact that over two-thirds of Nigerian consumers and a third of their counterparts from the UAE and Brazil would feel more confident entrusting their life savings in Bitcoin than traditional financial instruments speaks volumes about the protagonism these regions are already playing. In many instances, the driving factor is the absence of viable – accessible – alternatives to, for instance, conduct cross-border transactions or mitigate the impact of inflation,” he says.
In terms of usage, the research revealed the purpose to which Bitcoin was increasingly becoming a currency of choice amongst emerging market consumers:
- To send and receive money from abroad: Nigeria (48%), compared to a global average of 28%); Germany (just 18%), the UK (20%)
- To store savings; Brazil (51%) and Nigeria (49%) compared to a global average of 43% (South Korea, just 27%)
These respondents also revealed optimism with respect to the future. According to the data, 78% of Nigerian respondents and 70% of Brazilians believe that usage (and valuation) of Bitcoins will continue to rise during the year, compared to a global average of 60% (UK (42%) and South Korea (47%)).
The index also covered the issue of this month’s Bitcoin halving, an event conducted every four years when the incentive for Bitcoin mining (effectively, validating transactions) is reduced by half; the policy is embedded in the currency’s algorithm and designed to mitigate the effects of inflation by maintaining scarcity.
While there is considerable speculation about the impact of this event on valuations, consumers themselves revealed little awareness or concern about the same with 30% claiming to have “no idea” what the halving is; and a further 39% (globally) see it as “irrelevant” to their use of Bitcoin.
“The inaugural BIT Index demonstrates the global south’s role in shaping the decentralized economy; this is particularly evident in Nigeria where usage, trust and awareness levels outstrip those of other markets surveyed. Equally revealing were the reasons behind Bitcoin’s adoption in markets such as Nigeria, Brazil and, also the UAE, where issues such as cross-border payments, savings protection and mitigation of (traditional) banking charges are predominant. Insights such as these will be crucial in defining the next generation of Bitcoin apps and services in the global south and beyond,” says Jonathan.
With its Bitcoin Layer 2 technology, BeL2, Elastos is building the infrastructure to allow Bitcoin users to transact directly with buyers/sellers on any terms they choose, and without the requirement to share personal data with any third party. Launched in December last year, BeL2 effectively converts Bitcoin into a Layer 2 digital currency, offering Bitcoin holders the potential to denominate smart contracts directly in the currency, reducing transaction fees, and eliminating the need for intermediaries.
*The research was compiled from online interviews conducted with 1,407 self-defined ‘tech savvy’ respondents in Brazil, Germany, Nigeria, South Korea, UAE, UK, and US. The interviews were completed by a third party, registered market research company and completed between 30 March and 04 April ’24.
About Elastos
Elastos is a public blockchain project that integrates blockchain technology with a suite of reimagined platform components to produce a modern Internet infrastructure that provides intrinsic protection for privacy and digital asset ownership. The mission is to build accessible, open-source services for the world, so developers can build an internet where individuals own and control their data.
The Elastos SmartWeb platform enables organizations to recalibrate how the Internet works for them to better control their own data.
https://www.linkedin.com/company/elastosinfo/
Media Contact
Roger Darashah
roger.darashah@elastoselavation.org
