The use of cryptocurrencies in Nigeria could have been legalized again. According to unofficial sources, the Central Bank of Nigeria has claimed that there was never a time when it prohibited the use of cryptocurrencies. So revealed a local media outlet that obtained information from the 30th Seminar for Financial Correspondents and Business Editors organized by the bank.
According to the governor of the country's Central Bank, Godwin Emefiele, who was not present, but was represented by Adamu Lamtek, the deputy governor of Corporate Services, said that his goal is to ensure the well-being of traditional banks in the always chaotic industry. of digital currencies, creating borders between both industries, especially for the banking sector, which it is their responsibility to protect.
As he verbally clarified:
“The CBN did not impose restrictions on the use of Cryptocurrencies and we are not discouraging people from exchanging them. What we just did was ban cryptocurrency transactions in the banking sector. "
The news has elicited mixed reactions from Nigerians, who are both surprised and appreciative of the new development. This is understandable because in February, on the 5th precisely, the country's main bank banned cryptocurrency trading.
The country's main bank issued a letter to all depository banks, non-bank financial institutions and other similar financial firms to desist from facilitating cryptocurrency-related transactions. Shortly after the letter was published, cryptocurrency users in the country complained of losing access to their bank accounts for trying to convert their Bitcoins to naira and withdraw them as usual, to their traditional bank accounts.
Other crypto companies revealed that banks had stopped processing crypto funds, as indicated by the CBN. Major cryptocurrency buying and selling platforms like Buycoins quickly introduced a third-party peer-to-peer app to help users get back to normal, although the method was more expensive and time-consuming.
While it is true that the use of cryptocurrencies was not prohibited, preventing banks from partnering with cryptocurrency companies to process transactions jeopardizes the practice of cryptocurrency trading itself.
However, this is comforting news for the Nigerian crypto ecosystem. Following the new revelation, cryptocurrency users in the country have reason to remain hopeful about the future of digital currencies in the country. It gets even better when you consider the crypto-positive feedback made by the vice president of the countries, Professor Yemi Osibanjo.
As Nigeria seeks to restructure its cryptocurrency sector, residents of India, another developing country, may need to call for readjustments to the impending cryptocurrency ban, in which the use and ownership of cryptocurrencies are about to be criminalized.