VIRTUAL CURRENCY AND ECONOMIC GROWTH IN NIGERIA

Abstract

Despite the recent rise in the value of several cryptocurrencies, the rate at which they are traded is still very volatile. Prices of the virtual currency are determined by supply and demand. As a result, it is vital to analyze their capitalization, which is determined by their pricing, in connection with economic performance. This study therefore looked at how virtual currency affects economic growth in Nigeria. Ex-post facto research design was used in the study. The data was collected during a ten-year period, from 2014 to 2023, using secondary sources. However, the Coinmarketcap website provided the statistics on virtual currencies, and the CBN Statistical Bulletin provided the measures of Nigeria's economic growth (real gross domestic product). The gathered data was analyzed using regression analysis, correlation, line charts, and descriptive statistics. The results showed that the real gross domestic product of Nigeria was not significantly affected by Bitcoin and Ethereum coin. The study came to the conclusion that the price of virtual currencies like Bitcoin and Ethereum coin cannot be used to forecast Nigeria's GDP. The study recommended that Nigerian government should consider enacting regulations that would protect against the excessive volatility of virtual currencies and their vulnerability to illegal operations in Nigeria.