Today, Central Bank of Nigeria (CBN) circular sent to commercial banks and other financial institutions surfaced online. Cryptocurrencies have gained popularity since bitcoin, the most valuable crypto, rose significantly four years ago. The coin went from $900 in January 2017 to almost $20,000 by the end of that year. While cryptocurrencies are known for people making (or losing) money from trading, they have many use cases, including making cross-border payments, remittances or storing wealth (protected from inflation or exchange rate depreciation).
In countries where the official fiat currency is less reliable, cryptocurrencies have gained significant popularity: cue Nigeria and its ever-weakening naira.
For many in Africa’s largest country, cryptocurrencies were a breakthrough, and in 2017, we started to see a rise in bitcoin volumes. According to one estimate, local bitcoin trades hit $1 million in a single week.
At the same time, startups started to emerge—providing different financial solutions using cryptocurrencies and their technology. One of Nigeria’s largest cryptocurrency exchanges, BuyCoins, was founded in 2017.
It wasn’t all good news, though. Bitcoin was also very popular for individuals who wanted to get involved in a Ponzi scheme called MMM (Mavrodi Mondial Moneybox).
This connection, coupled with a few fraud causes, made African governments and regulators slightly cautious. For central banks, though, the rise of cryptocurrencies was a potentially scary movement.
The idea of digital currencies that central banks have no control over were seen as a threat to conducting monetary policy.
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Na there papa Dem go shut down.
Clueless people everywhere 😂
This crypto, don't still understand it
You say thread explaining what d circular mean and why they issued it, you explain anything just end up dey give us stories
They can't stop us 😂😂😂 the youth are making legit money and the government are pain
North don't do crypto so they will shut it down.... North don't do dollar or euro account .north don't are not overwhelmingly using social media like the way south do ..so anything that will make life difficult for the south and bring Nigeria back to stone age is ok by the zoo government of f Nigeria
Useless man.. No single sense at all.. A man with cow brain instruct a professional as you, you will yield even when you know the implications to the country's economy.. Central Bank Governor without sense
