El Salvador tops Bitcoin-interest charts as Brazil overtakes Nigeria

In Nigeria, stablecoins have become the favored cryptocurrency because they’re tied to a widely accepted asset, the U.S. dollar, providing a hedge against inflation and the devaluation of the naira.

Brazil has recently surpassed Nigeria, Africa’s largest economy, in terms of interest in Bitcoin, moving into second place behind El Salvador, according to Google Trends data. This shift indicates a growing enthusiasm for Bitcoin in Brazil, Latin America’s most populous nation, while in Nigeria, there’s an increasing preference for the USDT stablecoin over Bitcoin.

In 2022, the ranking was different, with El Salvador leading, followed by Nigeria and Brazil. El Salvador’s continued interest in Bitcoin is evident, especially with the government’s recent initiative. On December 7, in collaboration with Tether, the El Salvador government launched the Freedom Visa program. This citizenship-by-donation scheme offers residency and a path to citizenship for those who donate $1 million in Bitcoin (BTC) or Tether (USDT), aiming to attract 1,000 participants.

Brazil’s growing interest in cryptocurrencies is also reflected in the actions of its largest private bank, Itau Unibanco, which began offering Bitcoin and Ether trading services in early December. This move followed several changes in cryptocurrency regulations across Latin America. Additionally, on December 12, Brazilian President Luiz Inacio Lula da Silva signed a law to tax crypto assets held abroad by Brazilian citizens.

In Nigeria, the preference for stablecoins like USDT is driven by their link to the U.S. dollar, offering a hedge against inflation and the devaluation of the Nigerian naira. Stablecoins provide not only stability against market volatility but also attractive trading opportunities. The 2023 Geography of Cryptocurrency Report by Chainalysis highlights a significant increase in peer-to-peer trading rates of the naira against USDT in 2023.

Despite the Central Bank of Nigeria’s (CBN) ban on licensed banks from engaging in cryptocurrency-related activities since over two years ago, Nigeria’s crypto market continues to be an essential transactional medium in the country. However, Nigeria is gradually losing its crypto prominence to more crypto-friendly nations like the UK, UAE, and Brazil.

Nigeria still leads in cryptocurrency adoption both in Africa and globally, with a 9% annual growth rate as reported by Chainalysis. Although there’s a recent dip in Bitcoin interest, Nigeria remains in the top three countries for consistent growth in cryptocurrency engagement since 2021.