The Central Bank Of Nigeria (The Apex Bank) recently sent a circular to all commercial banks and other financial institutions instructing them to close all accounts of customers engaging in cryptocurrency operations.
Cryptocurrency is a digital currency the CBN has no control over whatsoever hence it’s seen as a threat to it’s monetary policies.
The CBN has been trying to rid the economy of cryptocurrencies since 2017 when it first sent a circular warning banks that they can’t be recognized as legal tenders while adding they were mostly used for money laundering and terrorism activities.
Investment by large corporations in cryptocurrencies has aggravated the apex bank’s fears of the situation getting out of hand. It is not uncommon to find out that most Nigerian entities actually buy cryptocurrencies to get by the inconveniences of the foreign exchange market. It is faster and easier to exchange bitcoin than to go through the bank to send/receive money internationally.
Cryptocurrency is actually gaining more ground in the Nigerian economy as it was reported by usefultips that in October 2020 alone, about $32.5 million worth of cryptocurrencies had been traded by Nigerians. This shows the potentials of the cryptocurrency market in Nigeria.
However, the Securities and Exchange Commission (SEC) has in its September 2020 statement formally recognized cryptocurrencies as securities hence putting the CBN’s circular at loggerheads with its statement.
We can only hope that the CBN delve deeply into researching ways it could bring the new digital currencies under control instead of trying to dust it off the board.
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