George Residence, a hospitality holding in Lagos, Nigeria, has become the first hotel in the country to accept Bitcoin payments. Additionally, the hotel hopes to expand its balance sheet and adopt the top cryptocurrency as its primary reserve.
A hedge against inflation
Chief executive officer of the luxury hotel Yanju George stated that they decided to hedge against inflation.
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He added that 50% of its cash reserves have been allocated to Bitcoin (BTC), and there are plans to increase it in the future.
He also stated that the company is partnering with Coinest Africa to process cryptocurrency payments when it starts accepting Bitcoin as a payment option for its services. Sanju stated,
Bitcoin is the currency of the future and it is only right that we are strongly positioned so we do not get left behind.
Yanju said that Bitcoin offers guests a more secure and faster method of enjoying the comfort the hotel offers. He added that the goal of George Residence is to provide the comfort and simplicity that its guests desire.
The hotel is located in Lekki, Lagos, the country’s commercial capital. Nigeria’s activity around Bitcoin and cryptocurrencies is one of the busiest in the world. Many traders and investors are turning to cryptocurrencies as a hedge against the rising level of inflation in the country.
Nigeria’s inflation levels have been in the double digits since 2016, recently peaking at 17.33%. This has been made more complicated as the local currency weakens and the COVID-19 pandemic keeps impacting the economy.
The legality of Nigeria’s crypto industry still uncertain
With this increased level of inflation and the increasingly weakening naira, investors are turning to Bitcoin as a hedge and safe haven.
However, the Nigerian crypto industry is still facing legal challenges, as its legal status has not been clarified by authorities. The Nigerian Securities and Exchange Commission is still engaging in discussion with the Central Bank to finalize modalities for digital asset regulation.