Nigeria’s inflation rate has been staggering. According to reports, annual inflation in Nigeria rose to 24.08% in July, marking the highest level in 18 years.
Despite the best efforts of the current administration, tackling inflation hasn’t been easy. And, although different policies have been put in place, all signs point to the Dollar exchange rate hitting ₦1,000 before the end of the year.
As you’d imagine, many citizens have been looking towards stemming this tide. And, with access to the dollar being especially difficult, cryptocurrencies – particularly, stablecoins – could be the best alternative. And, Quidax is championing this cause.
What is Inflation?
Put simply, inflation is the rate at which the prices of goods and services increase over time. It is usually determined by two factors:
- An increase in the price of goods and services.
- A decrease in the purchasing power of a currency.
When inflation rises, people spend more money to buy the same quantity of goods and services. Remember when our parents talked about things being cheaper “back in the day?” Well, that’s the effect of inflation.
How Does Inflation Start?
Inflation happens when there’s an increase in the amount of money circulating in a country. This can be due to several things:
- A country’s government may print more money to fund its military, carry out a project, etc.
- The government could also print more money as a form of relief. For instance, governments around the world printed money for stimulus packages during the COVID-19 pandemic.
Whatever the reason, this excessive money printing means that people can buy more things. As a result, sellers also raise their prices so they can meet up with demand.
Soon enough, prices rise everywhere, and the value of the currency itself drops.
The Stablecoin Solution
Anytime inflation’s effects start to get worse, the primary solution is for people to save their money in Dollars.
The Dollar is the world’s reserve currency, with demand for it growing across the world. As such, its value has maintained stability over time.
Sadly, people looking to save in Dollars in Nigeria haven’t been able to easily access it. Policies by the Central Bank have restricted access to the currency, meaning that most people are unable to easily make exchanges.
Thanks to stablecoins, access to the Dollar is as convenient as possible. Basically, stablecoins are cryptocurrencies whose values are backed against stable assets – such as gold, fiat, etc.
Take USDT, for instance. Its value is tied to that of the Dollar, so 1 USDT is always equal to $1. Stablecoins are perfect for investors looking to access foreign currencies while also avoiding the inherent volatility of most traditional cryptos.
Today, the most popular stablecoins you can buy easily in Nigeria include Tether (USDT), USDCoin (USDC), and Binance USD (BUSD). And, they’re all available on Quidax.
Quidax Dollar Savings: Beat Inflation And Earn Returns
To make things even better, Quidax now offers a Dollar Savings product that allows anyone to save their money in Dollars and earn interest!
The exchange’s Dollar Savings product allows you to deposit Naira, convert it to Dollars, and save it. What’s more, you get to earn up to 10% in interest annually.
With the Dollar Savings product from Quidax, Nigerians get the perfect way to protect their money from inflation – and, earn considerable interest, which itself is also paid in Dollars. It’s the perfect combination for risk-averse investors looking for the safest way to hold their money.
You can take advantage of this opportunity today. Sign up on Quidax, and you can get started!