Brazil has recently surpassed Nigeria in Google Trends’ interest-in-Bitcoin rankings, securing the second position. El Salvador, known for its unwavering commitment to Bitcoin, has retained its top spot. This shift in rankings reflects the growing popularity of Bitcoin in Brazil, the most populous nation in Latin America. In contrast, Nigeria, which held the second position in 2022, has now slipped to the third spot.
El Salvador maintains its position in Bitcoin interest rankings
Notably, the data indicates a noteworthy trend where Nigerian crypto users are increasingly favoring the USDT stablecoin over Bitcoin. This shift in preference could be attributed to the stablecoin’s link to the widely accepted U.S. dollar, providing a safeguard against inflation and the devaluation of the naira, Nigeria’s currency. El Salvador’s dedication to Bitcoin is underscored by its leading position in Bitcoin interest. In a recent development, the government, in collaboration with stablecoin issuer Tether, introduced the Freedom Visa.
This innovative citizenship-by-donation program by El Salvador offers residency and a pathway to citizenship for individuals contributing a $1 million donation in Bitcoin (BTC) or Tether (USDT) to the country. Brazil, in a move reflecting changing attitudes toward digital assets, witnessed its largest private bank, Itau Unibanco, enter the cryptocurrency space. Starting with Bitcoin and Ether trading services, this expansion aligns with a series of cryptocurrency regulation changes in Latin America.
Notably, on December 12, Brazilian President Luiz Inacio Lula da Silva signed a law imposing taxes on crypto assets held abroad by Brazilian citizens. In Nigeria, the preference for stablecoins has risen due to their association with the U.S. dollar. This shift not only provides financial security against market fluctuations but also serves as a hedge against the devaluation of the naira. The 2023 Geography of Cryptocurrency Report by Chainalysis highlights the surge in peer-to-peer trading rates of the naira against USDT, more than doubling the starting rate.
Brazil takes second spot as Nigerians shift to stablecoins
Despite facing challenges, the crypto market in Nigeria remains a significant transactional tool in the sub-Saharan nation. However, it is gradually losing prominence to more crypto-friendly countries such as the United Kingdom, the United Arab Emirates, and now Brazil. The Central Bank of Nigeria (CBN) implemented a ban on licensed banks participating in cryptocurrency-related activities over two years ago. This regulatory stance aimed to control the rise of unregulated transactions.
Despite this, Nigeria continues to lead in cryptocurrency adoption in Africa and globally, experiencing a 9% annual growth rate, according to a Chainalysis report. This sustained growth suggests ongoing interest and activity in the crypto space, even amid fluctuations in Bitcoin interest. The evolving cryptocurrency landscape highlights the dynamic interplay between regulatory developments, institutional involvement, and user preferences.
Brazil’s ascent in Bitcoin interest is closely tied to its private banking sector’s embrace of cryptocurrency services, signaling a shifting attitude toward digital assets. In contrast, Nigeria’s leaning towards stablecoins may reflect a strategic choice by users seeking stability amid currency challenges. As the global cryptocurrency narrative unfolds, the roles played by countries like El Salvador, Brazil, and Nigeria underscore the complex factors shaping the industry.
