Grassroots Crypto Adoption Despite Government Bans

11 February 2025 12 Comments Michael Jones

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Article Context: In Nigeria, where inflation hit 24% in 2023, the naira lost 90% of its value against the dollar over five years. This tool demonstrates why people use crypto as a survival tool.

When a country’s money loses 75% of its value in less than a decade, people don’t wait for permission to find a solution. In Nigeria, they turned to cryptocurrency-not because it was trendy, but because their savings were disappearing faster than they could earn them. The government tried to ban it. Banks blocked transactions. Yet crypto usage didn’t just survive-it exploded. Today, Nigeria ranks second in the world for crypto adoption, even after multiple crackdowns. This isn’t an anomaly. It’s a pattern repeating across the Global South, where people are building their own financial systems, one peer-to-peer transaction at a time.

Why People Risk It

In Nigeria, inflation hit 24% in 2023. The naira, once worth 150 to the US dollar, now trades near 1,500. That’s not just a number-it means your salary buys less than a quarter of what it did five years ago. Many people can’t access foreign currency legally. Remittances from family abroad cost up to 8% in fees through traditional channels. For someone sending $200 home, that’s $16 gone. Crypto cuts that to under $2. No middlemen. No delays. No permission slips.

It’s not just Nigeria. In Argentina, where inflation hit 280% in 2024, people use Bitcoin to protect their wages. In Vietnam, young workers use stablecoins to save for college, bypassing banks that charge high fees for small accounts. In Ghana and Kenya, mobile money users are switching to crypto to send money across borders without waiting days for clearance. These aren’t speculators. They’re everyday people using crypto as a survival tool.

How It Works Without Banks

You won’t find crypto ATMs in most of these places. You won’t see ads from Coinbase or Binance. Instead, adoption spreads through WhatsApp groups, Telegram channels, and local market stalls. A vendor in Lagos might accept USDT (Tether) because it holds value better than naira. A student in Buenos Aires buys Bitcoin through a peer-to-peer app like Paxful, then sells it slowly to pay rent. No ID required. No bank account needed. Just a smartphone and a Wi-Fi signal.

The infrastructure isn’t perfect. Internet outages happen. Prices swing. But the trade-off is clear: crypto is more reliable than the local currency. In 2023, Nigeria’s central bank blocked banks from handling crypto transactions. Within weeks, people started using decentralized exchanges and peer-to-peer platforms like LocalBitcoins and Binance P2P. Transactions moved to cash meetups, digital wallets, and even QR codes on posters. The government could shut down banks-but it couldn’t shut down people’s need to store value.

The Role of Youth and Technology

Nigeria has one of the youngest populations in the world. Over 60% of its 210 million people are under 30. They grew up with smartphones. They don’t trust institutions that failed them. They don’t want to wait for a bank to approve a loan. They want control.

This generation uses crypto not just to send money, but to access global markets. A designer in Abuja sells NFT art to buyers in the US. A coder in Kano builds DeFi tools on Ethereum and gets paid in USDC. A farmer in Port Harcourt uses a crypto-based microloan app to buy seeds, then repays in stablecoins after harvest. These aren’t fringe activities. They’re becoming normal.

Smartphone penetration in Nigeria is over 50%. In Kenya, it’s 80%. In India, where crypto is heavily taxed but not banned, over 100 million people now hold digital assets. The tools are simple: apps like Trust Wallet, Phantom, or MetaMask. No paperwork. No credit check. Just a seed phrase you write down and protect.

Young people across continents trade crypto using cash and phones, with digital coins floating like stars.

Government Bans Don’t Work-They Just Drive It Underground

Nigeria’s central bank issued a ban in 2021. It threatened banks with penalties if they processed crypto transactions. The result? Crypto usage jumped 1,200% in the next year. People didn’t stop using it-they got smarter. They used cash exchanges. They traded through friends. They used VPNs to access foreign exchanges. The ban didn’t stop adoption. It made it more decentralized, more resilient.

The same thing happened in Venezuela. After the government cracked down on Bitcoin in 2019, usage didn’t drop-it diversified. People started using crypto to buy food, pay for medicine, and even rent apartments. In Iran, where international banking is cut off, crypto is used to import goods and pay for online services. In Turkey, where the lira lost 40% of its value in 2023, crypto became the go-to savings tool for middle-class families.

Bans work only if people have no alternatives. When the alternative is losing everything, people choose crypto-not because they love blockchain, but because they have no other choice.

The Shift in Global Policy

Governments are starting to realize they can’t win this fight. In 2025, the US passed the GENIUS Act, a bipartisan law that created clear rules for stablecoins. It didn’t ban crypto. It regulated it. The same year, the Trump administration issued an executive order stating it was policy to “support the responsible growth and use of digital assets.” Even the SEC, once seen as crypto’s biggest enemy, paused lawsuits against major exchanges.

This isn’t a sudden change. It’s a reaction. When millions of people use a technology daily, governments have to respond-not by banning it, but by managing it. Nigeria’s government, after years of resistance, quietly began allowing licensed crypto exchanges to operate in 2024. They didn’t cheer. They didn’t celebrate. But they stopped trying to shut it down.

The lesson is clear: you can’t stop grassroots adoption. You can only try to control it. And when you do, you risk pushing it further into the shadows.

A student, farmer, and freelancer use crypto for daily needs in a whimsical, blockchain-shaped city.

What This Means for the Future

This isn’t just about money. It’s about autonomy. People in countries with broken financial systems are building their own. They’re not waiting for the IMF or the World Bank to fix things. They’re using code, networks, and trustless systems to take control.

In the next five years, we’ll see more countries follow Nigeria’s path. India, Indonesia, Egypt, and Brazil are already showing signs of similar behavior. As inflation rises and banking access stays limited, crypto will keep growing-not because it’s perfect, but because it’s better than the alternative.

The real question isn’t whether governments will ban crypto. It’s whether they’ll recognize that the people using it aren’t criminals. They’re customers. They’re workers. They’re parents trying to feed their kids. And when you have that many people on one side, the rules change.

What Comes Next

Crypto won’t replace banks overnight. But it’s already replacing the parts of banking that failed people. No more 3-day wire transfers. No more 10% remittance fees. No more frozen accounts. No more currency collapses wiping out savings.

The future of finance isn’t in Wall Street boardrooms. It’s in the hands of a student in Lagos buying USDT with cash from a market vendor. It’s in a mother in Buenos Aires using Bitcoin to pay her daughter’s school fees. It’s in a freelancer in Nairobi getting paid in USDC instead of waiting for a bank to clear a check.

These aren’t outliers. They’re the new normal.

Why do people use crypto when their government bans it?

People use crypto when their government bans it because they have no other way to protect their money. In countries with high inflation, unstable currencies, or blocked access to foreign money, crypto offers a way to save, send, and spend without relying on broken systems. It’s not about ideology-it’s about survival.

Is crypto legal in Nigeria?

Nigeria banned banks from processing crypto transactions in 2021, but it never made owning or trading crypto illegal for individuals. By 2024, the government began licensing exchanges and allowing regulated platforms to operate. While there’s still no formal legal framework, enforcement has shifted from blocking to managing.

Can crypto replace traditional banking in developing countries?

Crypto won’t replace all banking functions, but it’s already replacing the most broken parts: cross-border payments, savings protection, and access to global markets. For millions without bank accounts, crypto offers a faster, cheaper, and more reliable alternative. It’s not perfect, but it’s often the only option left.

How do people buy crypto without a bank account?

People buy crypto through peer-to-peer platforms like Paxful, LocalBitcoins, or Binance P2P. They meet sellers in person, pay in cash, and receive crypto directly to their wallet. Others use mobile money services like M-Pesa to trade for crypto. No bank needed-just a phone and trust in the person they’re trading with.

Why did the U.S. change its stance on crypto in 2025?

The U.S. changed its stance because crypto adoption became too big to ignore. Millions of Americans hold digital assets, and global competition forced policymakers to act. The GENIUS Act and executive order in 2025 weren’t about promoting crypto-they were about controlling it. When regulation fails, governments shift from banning to governing.

Is crypto safe for everyday people in unstable economies?

It’s not risk-free. Prices can swing, scams exist, and losing your seed phrase means losing everything. But for many, the risk of holding devaluing currency is worse. Crypto isn’t a magic fix-but in places where the system has failed, it’s often the least bad option available.