CRYPTOCURRENCY AND FINANCIAL INCLUSION: EMPIRICAL EVIDENCE FROM NIGERIA

Abstract

The emergence marked the start of a new phase in financial innovation, upending established banking structures and revolutionizing financial inclusion across the globe. This study investigates the impact of cryptocurrency adoption on financial inclusion in Nigeria. The study employ monthly data spanning from January 2017 to August 2023, on simple static relationships amidst financial inclusion growth, and other explanatory variables, including the volume of cryptocurrency transactions, the number of cryptocurrency users, and internet mobile penetration. Preliminary analysis reveals significant positive correlations between the volume of cryptocurrency transactions, the number of cryptocurrency users, and financial inclusion measure. Increased internet mobile penetration also demonstrates a positive influence, suggesting that greater access to mobile internet facilitates broader participation through cryptocurrency. The results highlight the pivotal role of cryptocurrency in enhancing financial inclusion and depth, driving a more robust financial ecosystem. This study underscores the potential of digital currencies to augment traditional finance and stability in emerging markets. The study suggests policy to support more cryptocurrency adoption and mobile internet infrastructure, as such would bolster financial development in Nigeria.