Andreas Antonopoulos, Central Bank of Nigeria, crypto trading, cryptocurrency ban, Cryptocurrency Exchange, Endsars, Foreign exchange, global pandemic, peer to peer trading, warren buffett bitcoin

Following the outcry over the Central Bank of Nigeria’s latest directive that targets cryptocurrencies, the institution has reaffirmed its stance with another statement. In the latest five-page document, the CBN insists that this directive is intended to protect the country’s financial system from the “risks†that are associated with cryptocurrencies.

Debunked Claims

Still, the central bank claims the directive has “not placed any new restrictions on cryptocurrencies†but is only regurgitating what was said four years ago. In January 2017, the CBN published a circular which claimed then that the use of cryptocurrencies was against the “key mandate of the CBN as the issuer of legal tender in the country.†Nevertheless, the country has since seen the use of cryptocurrencies grow and now Nigeria ranks as one of the leading cryptocurrency markets in the world.

Despite the apparent embrace of cryptocurrencies, the CBN statement appears to ignore this evidence. Instead, the statement relies on unsubstantiated claims to justify the CBN’s decision to sideline crypto players from the banking system. For instance, the CBN claims that China has “completely banned and all exchanges (are) closed as well.†In another instance, the CBN attempts to discredit cryptocurrencies by invoking billionaire investor Warren Buffett’s infamous remarks about bitcoin.

Using these and other debunked claims, the press statement then concludes that the CBN “has no comfort in cryptocurrencies at this time.†Consequently, the central bank says it will “continue to do all within its regulatory powers to educate Nigerians to desist from its use.â€

Global Condemnation

In the meantime, as anger at the directive to banks grows, the CBN’s statement explaining this decision is seemingly failing to calm nerves. Some crypto players have suggested they might have to leave their country of birth and seek opportunities elsewhere. However, for some crypto players like Adedayo Adebajo, this CBN decision was inevitable. Adebajo, who is the managing director at Jelurida Africa, a consultancy firm, points to the recent Endsars protests as one factor that contributed to this changed approach by the central bank.

Towards the end of 2020, when the CBN ordered the freezing of bank accounts that were associated with leaders of the Endsars protest movement, organizers began to ask for donations in bitcoin instead. As a result, donations to bankroll the Endsars continued to flow in and this has since inspired other activists as Adebajo explains:

Meanwhile, the condemnation of the CBN decision has also come from crypto influencers from outside Nigeria. For instance, after reports of this directive began circulating, prominent bitcoin educator, Andreas Antonopoulos tweeted: “Disappointing policy from Nigeria.â€

Andreas Antonopoulos, Central Bank of Nigeria, crypto trading, cryptocurrency ban, Cryptocurrency Exchange, Endsars, Foreign exchange, global pandemic, peer to peer trading, warren buffett bitcoin

The Rise of P2P Trading

Still, a few players in the Nigerian crypto industry are adamant that this directive will ultimately boost peer-to-peer trading. For instance, in his reply to Antonopoulos’ tweet, Chris Ani, a teacher and startup adviser, insists that the CBN directive “did not ban cryptocurrencies.†Instead, he says this directive only applies to “crypto trading with the banks and crypto exchanges.â€

Andreas Antonopoulos, Central Bank of Nigeria, crypto trading, cryptocurrency ban, Cryptocurrency Exchange, Endsars, Foreign exchange, global pandemic, peer to peer trading, warren buffett bitcoin

In the meantime, Alexander Belov, a co-founder at Coinstelegram Media and Fund, tells news.Bitcoin.com that this CBN directive has more to do with the state of that country’s economy. The Nigerian economy, which has been hit hard by the global pandemic, is facing ongoing shortages of foreign exchange.

Foreign exchange shortages, in turn, force many to switch to cryptocurrencies which can be bought via local exchanges. Therefore, by banning banks from accommodating cryptocurrency entities, the CBN is trying to force Nigerians to return to traditional banking channels which it controls. The directive could also be an attempt to mask the real challenges besetting that economy as Belov explains:

What do you think is going to be the final outcome of this directive? You can share your views in the comments section below.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Warren Buffett’s Berkshire Hathaway Invests in Bitcoin-Friendly Digital Bank

Berkshire Hathaway, the company led by CEO Warren Buffett, has invested $500 million in a pro-bitcoin digital bank. Nubank says it will offer bitcoin investment following its acquisition of brokerage firm Easynvest which offers the trading of Brazil’s first bitcoin exchange-traded fund (ETF). Berkshire Hathaway Invests in Pro-Bitcoin Digital Bank Warren Buffett’s Berkshire Hathaway Inc. […]

Xem chi tiết: Warren Buffett’s Berkshire Hathaway Invests in Bitcoin-Friendly Digital Bank

Interactive Brokers to Launch Cryptocurrency Trading End of Summer, CEO Reveals

Interactive Brokers will add cryptocurrency trading to its platform by the end of the summer, CEO Thomas Peterffy has revealed. The platform has about 1.33 million customer accounts and $330.6 billion in customer equity as of the first quarter. Interactive Brokers to Offer Cryptocurrency Trading The chairman and CEO of Interactive Brokers (Nasdaq: IBKR), Thomas […]

Xem chi tiết: Interactive Brokers to Launch Cryptocurrency Trading End of Summer, CEO Reveals

NYAG Court Order to Shut Down Coinseed Succeeds, CEO Creates Profanity Token for Attorney General

The crypto trading platform Coinseed is shutting down operations according to a written statement from the company’s CEO Delgerdalai Davaasambuu. A court order secured by New York Attorney General Letitia James told Coinseed to halt all of its operations. Following the announcement of the shutdown, Coinseed’s CEO said he created an ERC20 token called “FLJ†[…]

Xem chi tiết: NYAG Court Order to Shut Down Coinseed Succeeds, CEO Creates Profanity Token for Attorney General

Kenyan Banks Warn Clients Against Crypto Trading

A few Kenyan banks have started sending out warning alerts to clients engaged in cryptocurrency trading to be wary of the associated risks. These warnings have reportedly been sent to clients who have “used their credit and debit cards to buy cryptocurrencies on crypto exchanges.†Crypto Trading Risks According to a local report, one of […]

Xem chi tiết: Kenyan Banks Warn Clients Against Crypto Trading

Kenyan Banks Warn Clients Against Crypto Trading

A few Kenyan banks have started sending out warning alerts to clients engaged in cryptocurrency trading to be wary of the associated risks. These warnings have reportedly been sent to clients who have “used their credit and debit cards to buy cryptocurrencies on crypto exchanges.†Crypto Trading Risks According to a local report, one of […]

Xem chi tiết: Kenyan Banks Warn Clients Against Crypto Trading

African Fintech Start-up Chipper Cash Raises $100 Million — CEO Says No Crypto Services for Nigeria

Chipper Cash, an African fintech firm that specializes in facilitating cross-border payments, recently closed a $100 million Series C funding round. Taking the lead in what is now Chipper Cash‘s third fundraising round in the past twelve months is the venture capital (VC) firm, SVB Capital. The VC firm is an investment arm of U.S. […]

Xem chi tiết: African Fintech Start-up Chipper Cash Raises $100 Million — CEO Says No Crypto Services for Nigeria

Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

A class action lawsuit has been filed in South Korea accusing cryptocurrency exchange V Global of defrauding investors. The police reportedly estimate that 69,000 people have invested with the crypto exchange and the damage amounts to 3.8 trillion won. Crypto Exchange Sued for Defrauding Investors South Korean cryptocurrency exchange V Global has been accused of […]

Xem chi tiết: Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

A class action lawsuit has been filed in South Korea accusing cryptocurrency exchange V Global of defrauding investors. The police reportedly estimate that 69,000 people have invested with the crypto exchange and the damage amounts to 3.8 trillion won. Crypto Exchange Sued for Defrauding Investors South Korean cryptocurrency exchange V Global has been accused of […]

Xem chi tiết: Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

Binance Extends Blockade of Zimbabwean Crypto Users to Include Non-Resident Traders

South African Crypto Exchanges Confirm Receiving Request for Client Data From Tax Collection Body

Standard Chartered Bank Launching Cryptocurrency Exchange and Brokerage

Tiger Brokers and Futu to Offer Crypto Trading Services Outside China

Australian Tax Office to Prompt 400,000 Crypto Holders to Report Their Gains

Central Bank of Nigeria Governor Says “Digital Currency Will Come to Life” but Attacks Volatile Cryptocurrencies

Nigeria Bureau De Change Association Boss Accuses Speculators of Destabilizing the Naira— Says Central Bank Funding Will End Currency Woes

Dutch Central Bank Revokes Strict Verification Rules for Crypto Exchanges

Other Articles