Every day, I ask myself, "What exactly is the future of cryptocurrency in Nigeria?" The Nigerian government has banned cryptocurrency for more than a year. Since the government primarily banned banks from conducting crypto-related transactions. This means that it is not unlawful to own or trade cryptocurrency. The banned basically implies that the bank of financial institutions is not responsible for any crypto transactions you do as a citizen of the country.
What Happened On February 5, 2021?
The Central Bank of Nigeria (CBN) issued a statement stating that all banks and financial institutions should stop all cryptocurrency transactions, and that any individual or entity discovered transacting with cryptocurrency should be reported immediately. This strike has sent shockwaves across the crypto market, with some crypto holders panicking and selling their tokens at a loss in order to cash out their monies in naira. I panicked as well and converted some of my coins to naira.
How Are We Coping During This Time?
Most individuals rely on their bank cards for deposits and withdrawals, so it appeared that the government had finally put a halt to crypto transactions. Solutions were reviewed for some days . And finally after some weeks a solution was founded. A P2P Marketplace People were able to make transactions using the P2P marketplace thanks to exchanges like Binance; some local exchanges, such as Quidax, also introduced this method, allowing Nigerians to continue making crypto transactions, this market place allows us to buy or sell to our local currency while the Exchange act as an escrow.
Since then Nigerians have taken cryptocurrency really seriously. Students and youths are now earning largely with the numerous opportunities crypto has created.
So, What Exactly Is The Future Of Crypto?
I had a video conference with a friend in Canada, and he expressed interest in creating a crypto-related project in Nigeria. He inquired about the current condition of affairs in the country. He was curious as to why the government is against to cryptocurrency and if there is a method to bridge the gap. The truth is that the Nigerian government is not against cryptocurrency. They're against the fact that it does not benefit them. They're against crypto because it offers huge opportunities for Nigerian youths to get wealthy, and because it's decentralized, it will be impossible for them to control it.
What Is The Solution? (Personal Opinion)
In my own perspective, I believe the Nigerian government is frustrated because it is not profiting from cryptocurrency. If they can figure out a way to profit from cryptocurrency, I believe they will definitely legalize crypto.
For instance, let say they begins "crypto taxing" i.e they begins to collect tax on crypto transactions. I believe they would embrace and even support cryptocurrency.
Despite the ban, Nigerians continue to transact in cryptocurrency, but anyone caught will be punished. In fact, banks have begun to monitor transactions, and anything related to cryptocurrency will result in your account being restricted. I still don't understand the Nigerian government, but I feel they are dissatisfied with how the youths are progressing, which is why law enforcement agencies are prosecuting people who have cryptocurrency.
What are your thoughts? What is the future of cryptocurrency in Nigeria? Do you think that the government is against cryptocurrency because it does not profit from it?
When CBN made the announcement on February 5th, it didn't move me knowing that China has been banning BTC every single year.
You're very correct, and I agree with your points. And another reason they ban banks from transacting with Crypto is because of e-Naira.
Crypto is here to stay and Nigeria Government must find a way to legalize it. Even if they banned Peer-2-Peer from exchanges, people will still trade Crypto and that's the truth.