Nigerian Central Bank bans crypto transactions

Nigerian Central Bank bans crypto transactions

Added:
Category: Blog, Industry News
Posted by: AffPapa
Nigeria

Nigeria is undoubtedly one of the biggest markets across the globe for cryptocurrencies, so imagine people’s surprise when the country’s Central Bank announced a couple of months ago that banks were now barred from offering or facilitating crypto payments, as well as all crypto transactions being halted and accounts closed. Nigeria’s crypto scene is surely shocked by this issue, however it is understandable that the government has chosen to do so as more and more countries across the world are attempting to centralize or regulate the digital currency scene without completely destroying it.

The central bank then issued a statement which sheds light on this new regulation, which also mentioned that the goal from all of this was not to halt the crypto industry but to impose former orders that have been established since 2017, prohibiting crypto transactions in the Nigerian banking area.

The orders given in 2017 did not prohibit exchanges from utilizing banking systems in order to use crypto across Nigeria. That specific order only called for all banks to impose sufficient anti-money laundering controls. It definitely seems like this new order is trying to moderate the crypto scene, which surprises many people since the country is home to the second-largest crypto scene across the globe, behind the United States, making it the biggest one in the African continent too.

Since Nigeria is the biggest market in Africa for cryptocurrencies, numerous businesses in the country have been relying on crypto as it has shown exceptional potential and growth. The gambling and iGaming scene in the country is incredibly popular and has been venturing into crypto for a long time. Currently, many online casinos and betting sites in Nigeria provide games that utilize cryptocurrencies, not only Bitcoin but also Ethereum, XRP, Dogecoin and many others…

Utilizing crypto in the Nigerian iGaming industry has allowed for its transformation into a profitable source for the country, as it is the industry in which crypto has left the most positive impact out of them all.

Despite its positive footprint across many industries, it seems like this is becoming more of a trend across the world as well. In the USA, chairman of the Federal Reserve has inquired about the possibility of using cryptocurrencies to fund illegal activities including money laundering, as he expressed concerns about the instability of cryptocurrencies. Taking Iran as an example, many digital currency exchanges have been targeted, with the country even stating that Bitcoin mining is causing extreme air pollution and must therefore be stopped. This goes to show that the crypto scene is still on a route to establishment and needs to acquire the trust of many central financial institutions across the world.

Nigeria currently boasts the strongest economy in the entire continent, as well as having the largest population among the African countries with many youngsters compared to the rest. This accounts for a booming tech industry which proves why crypto has become such a large market in the country. Another reason why crypto has become popular in Nigeria is because of the instability of the country’s fiat currency, the naira, which has become volatile because of the COVID-19 pandemic.