For the longest time, peer-to-peer (P2P) trading has been the go-to method for trading digital assets in emerging economies like Argentina, Brazil, Mexico, South Africa and Nigeria, providing crypto access to the lion’s share of the world’s almost 2 billion unbanked residing in those regions.
A growing interest in digital assets has seen Nigeria, Vietnam, Kenya, Ghana, India, Tanzania, Cameroon, Ethiopia and Pakistan leading the charge in P2P exchange trade volume globally, according to the 2023 Geography of Cryptocurrency Report by Chainalysis.
Centralized exchanges (CEXs) have traditionally been the popular platforms for P2P trading within the cryptocurrency ecosystem. However, centralized exchanges are not without their limitations. They are susceptible to regulatory restrictions and operational risks, which can impact the reliability and accessibility of P2P trading services.
In a recent years, Binance, one of the world’s largest CEXs, has faced regulatory restrictions and scrutiny in several countries including the United States, United Kingdom, Canada, China, Japan, Thailand, Germany, India and Nigeria to name a few. Despite CEXs suspending certain services or facing regulatory hurdles, P2P trading continues to thrive as it operates on a decentralized model where transactions occur directly between individuals. This decentralized nature ensures that users can continue to trade digital assets peer-to-peer, irrespective of external restrictions.
WAVY, a decentralized peer-to-peer exchange for stablecoins (e.g USDC, USDT, NGNC, EURC, ARS, BRZ etc.), has emerged as a viable alternative for traders seeking to continue their trading activities amidst the crackdown on CEXs. The platform operates on a peer-to-peer basis, allowing users to connect with one another and execute trades securely and efficiently leveraging an escrow smart contract. With this users have greater control over their funds and can avoid the potential risks associated with centralized exchanges.
One of the key advantages of WAVY for users in emerging economies is its support for stablecoins, which are digital assets pegged to the value of traditional fiat currencies like the US Dollar, Euro, Brazilian Real, Canadian Dollar, Indonesian Rupiah, South African Rand and Nigerian Naira. Mainly held in digital self-custodial wallets (i.e Coinbase Wallet, TrustWallet, Zerion, Binance Wallet etc.), users are provided with more control over their funds. For traders seeking stability in their financial transactions, stablecoins offer a secure and predictable alternative to traditional fiat currencies.
WAVY also sports a seamless integration with traditional banking systems, allowing users to deposit and withdraw funds directly from their bank accounts, mobile money wallets and other forms of digital payment. This functionality provides a bridge between the blockchain and traditional finance, making it easier for users to enter and exit the stablecoin market.
In a market where accessibility and convenience are crucial, WAVY stands out by offering instant access to foreign exchange and accommodating local payment methods. This platform is tailored to meet the needs of crypto traders in emerging economies.
Victor Nwaejie — Product and Strategy Lead, LINK.
The information provided is for educational purposes only and should not be construed as financial advice. Cryptocurrency trading carries risks, and readers should conduct their own research before making investment decisions. The views expressed are those of the author and not necessarily endorsed by WAVY or any other organization mentioned.
