Various experts have advised Nigeria’s central bank across industries not to ban cryptocurrency due to the benefits it offers innovative youths.
Chief in Stakeholder Blockchain Association of Nigeria (SIBAN), Ihenyan, said we had made attempts since 2017 to Central Bank of Nigeria to regulate the cryptocurrency trading in the country but no response from (CBN).
He forwarded said that most developed countries had taken the regulation procedure, the United States currency control allowed banks to trade in Stablecoins; the outcome was a robust regulator framework.
What is Stablecoin
There are different type of coins which is managed by blockchain, as we have bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and many more. Stablecoins is cryptocurrencies that are secure market value to any external reference like the US Dollar. Malta, Iceland, and Singapore have matured the highest aims in blockchain investment because of how they manage the market.
Ex-Deputy Governor Central bank of Nigeria, Kingsley Moghal, had also criticized the summit bank over the ban. In a statement by the CBN, quote that it’s not a legal tender that they didn’t have to tell you or me what we can exchange for value. Moghalu also said that if I want to supply you with my shirt and provide me with your shoe, the CBN has no affair.
A directive was issued to (DMS) Deposit Money Bank. It was announced by the central bank of Nigeria, non-financial banks and other virtual bank institutions should not render banking services to the subject that deals with cryptocurrencies, including exchange.
Top banking stated on Sunday, explaining that there his no new confinements on cryptocurrencies. Saying that banks have earlier been forbidden, through CBN’s mandated January 12, 2017, not interacting, trade, or transact in cryptocurrencies.
In another referring, the position has been repeated by CBN Press Release recorded February 27, 2018.
The documentation is not accurate. Meanwhile, in 2017/2018, CBN as order banks to secure virtual currency exchangers. Customers must have anti-money laundering (AML) also combating financial terrorism (CFT), including control, must be effective know-your-customer (KYC) and transaction monitoring.
The new 2021 order from CBN takes that privilege from the banks and instructed closure of any account trading with cryptocurrency; all banks have to correspond failure to comply will face the panel.
They all explain forward about the country that was successful in cryptocurrency. Economies such are Iran, Bangladesh, Nepal, Cambodia, Ecuador, Saudi Arabia, Jordan, Bolivia, Kyrgyzstan, and developed colonies like UK, Canada, Australia, France, Switzerland, Singapore, Portugal, USA, Japan, and South Korea. Those mentioned countries have positive moods towards cryptocurrency, and Germany has made Bitcoin a payment source since 2018.
“Quotes by an expert stated Warren Buffet, his example of one side story that failed to know the truth. The world richest man is a pro-cryptocurrency, and some companies like NYDIG, Tesla, and Microstrategy hold a bulk of cryptocurrency investment.”
After the announcement by the CBN Luno, Buycoins, Quidat, and other naira exchange to cryptocurrency have stopped their service on naira deposit on their platforms.
For the past five years, thousands of Nigerians have benefited from the cryptocurrency market trading, as long the ban by the CBN decision did not lift. Investors for blockchain and other industries will not recommend Nigeria for any interaction as long as the CBN ban holds, Moghalu said.
“It was a disheartening moment because they didn’t explain before pulling the stakeholders to find a workable middle ground, throwing out the baby with the bathwater,” a project manager Daniel Eze said.
On another note by Moghalu Central Bank of Nigeria should adopt another method to approach cryptocurrencies in Nigeria. The country is still in recession, and CBN should look into the foreign exchange continue limited other business that needs it for daily operation. He also mentions that the world is going digital. Therefore there is a lot of discovery, and cryptocurrencies are the first on the table.
“My opinion would have been how can we secure and manage the risk of cryptocurrencies to stable the financial system so that it will not affect the colonies. I don’t support the banning exchange because $500 MILLION worth of bitcoin has been traded in Nigeria for five years. Nigeria was rate eight after countries like Soth Africa, Ukraine, Kenya, and many more. It has been the source of the financial system/investment ecosystem in Nigeria. When you ban the cryptocurrency, it looks like you are taking away probabilities from Nigerians, particularly in a discouraging economy,” he said.