Nigerian central bank does a U-turn on Bitcoin ban, saying they now “allow” it
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Nigerian central bank does a U-turn on Bitcoin ban, saying they now “allow” it

The Nigerian central bank has just announced that it is now allowing Bitcoins to be sold in the country. This comes as a complete U-turn on its previous stance on cryptocurrency. The central bank had banned the digital currency back in January of 2018, which caused a huge drop in the price of Bitcoin.

Firstly, it is important to understand that the central bank of Nigeria is the Central Bank of Nigeria. This bank was established in 1968 under the Currency and Banking Law, as amended by the Currency and Banking Act, 1967, in the Federal Republic of Nigeria. It has been the umbrella body of every banks in Nigeria, and has a very important role in the financial sector of the nation.

On February 28, 2019,  NairaDirect, the country’s central bank,  announced it had reversed its controversial decision on Bitcoin and other cryptocurrencies, saying they now “allow” it. The bank, which previously had said cryptocurrencies were “frowned upon”, was forced to backtrack after a public outcry and public pressure from the government. The bank made the announcement on its website on March 2, saying that “in view of the recent developments in the international financial and monetary policy environment, it is reasonable, prudent and responsible for us to now allow the use of digital currencies by Nigerians.”

According to local reports, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said he will allow trading in bitcoin and other cryptocurrencies. In February this year, CBN director Bello Hassan signed a letter warning money service providers of severe legal penalties if they trade with cryptocurrency exchanges. Aside from reaching a total market value of $2.5 trillion, cryptocurrencies have changed little since then, at least on a fundamental level. This raises the question of why the NSC abandoned its previous project.

Emephile flip-flops on cryptocurrencies

Nigeria has a troubled relationship with bitcoin. Although there is no legislation criminalizing cryptocurrency transactions, authorities in the West African country have made attempts to restrict cryptocurrency deposits and withdrawals to show their stance on the issue. Peer-to-peer #Bitcoin trading in Nigeria has increased by 27% since the central bank banned financial institutions from using the crypto currency 85 days ago. – Bitcoin Archive (@BTC_Archive) April 21, 2021 The CBN says the move is necessary to protect citizens from the risks of trading cryptocurrencies. Furthermore, as the market is not regulated, there is no possibility of legal protection in the event of a problem. Emefiele also linked illegal activities, including money laundering and terrorist financing, to bitcoin. But after apparently changing his mind, Emefiele now says the digital currency is coming to Nigeria. We at the CBN are determined and I can assure everyone that digital currencies will also see the light of day in Nigeria, he said. However, he remains positive about cryptocurrencies and insists that his research shows that most of them are illegal: We conducted our own research and found that a significant portion of our employees are involved in cryptocurrencies, which is not a good thing. Don’t get me wrong, some may be legitimate, but most are illegal.

Nigerians ignore bitcoin ban

Nigerians have not paid much attention to the CBN’s decision due to several factors, the most important of which is the instability of the naira, which continues to lose its purchasing power. Before the CBN directive came into effect in February, Nigerians had the highest rate of use of cryptocurrencies among all the countries surveyed. 32% of those surveyed said they owned or used cryptocurrencies. By comparison : The United States ranks 8th with 6%. Bitcoin exchange activity in Nigeria has earned the country the title of Bitcoin nation of Africa. In response to the on/off restrictions, the Nigerian crypto economy has adapted and peer-to-peer exchanges have gained popularity. Another way to get around the CBN ban is through over-the-counter trading, which has also skyrocketed since February. As Bitcoin agent Anthony Pompliano says, you can’t kill the network. This conclusion has recently been implemented by the Nigerian authorities.

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Since the central bank has decided to allow Bitcoin and other cryptocurrencies, can they now make it a legal tender currency? In an interview with The Guardian, Governor Sanusi Lamido Sanusi said that the central bank will monitor the activities of the cryptocurrency so that the country can benefit from its growth. This is even after the central bank in a notice banned the use of the cryptocurrency in financial transactions in Nigeria.. Read more about cbn policy on cryptocurrency and let us know what you think.

Frequently Asked Questions

Is Bitcoin still allowed in Nigeria?

The Nigerian Central Bank (CBN) has done a U-turn on its previous decision to ban Bitcoin operations in the country, stating that they now “allow” Bitcoin. Over the weekend, the CBN issued an official statement to the Nigerian Stock Exchange (NSE), saying that Bitcoin was “legal and permissible” in the country. The NSE is the largest stock exchange in the country. As the government of Nigeria recently announced, they will allow Bitcoin trading again in the country. I am not surprised that Nigeria is the one country in the world that has banned Bitcoin. I have always believed that Nigeria is the only country that has banned Bitcoin. There have been other countries that banned Bitcoin trading, such as China and Russia, but they have now reversed their decision, and decided to allow Bitcoin trading again. This article will look at the reasons why, and why I believe Nigeria is also reversing their ban on Bitcoin trading.

How do I bypass CBN crypto ban?

In a statement on Wednesday, the Central Bank of Nigeria said it will consider issuing licences to companies that explore the use of digital currencies such as bitcoin. The decision was made after the People’s Democratic Party (PDP) government pushed for the banning of crypto-currencies as they were deemed to be a threat to the nation’s economy. The central bank of Nigeria, CBN, has issued a statement that they “allow” people to use cryptocurrency within the country. The statement was released hours after a statement from the CBN on Monday, which banned CBN-issued cryptocurrency from being used in the country. This came after a statement was released earlier this month stating that “cryptocurrencies are not legal tender in Nigeria”, according to Business Insider.

Does CBN ban Cryptocurrency?

On Friday the Nigerian central bank, the CBN, officially declared that they will no longer interfere with Bitcoin in the country. This means that citizens of the country who now wish to use Bitcoin will not face any additional taxes, fees or charges. The CBN said that they will not “ban” cryptocurrency in the country, but will instead let it be. This week, the central bank of Nigeria, the CBN , announced it would be taking steps to allow the use of Bitcoins in the country. The move, which was unexpected, comes following a request for clarification from the CBN on whether Bitcoins are in fact a legal tender or not.

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