The CBN’s actions have increased the activity on the black market for crypto. This is a mixed blessing as it has made it easier for people to buy and sell, but at a cost of increased crime and corruption.
The latest news about cryptocurrency in nigeria is a Nigerian crypto exchange that has been the target of the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) ordered banks to cease servicing bitcoin clients nearly six months ago. While the strategy seems to have worked in terms of eliminating crypto businesses from the banking system, peer-to-peer trade has grown.
According to some experts, Nigeria continues to be the biggest African bitcoin market. The Central Bank of Nigeria, for its part, has added the now-standard guarantee that Nigeria would have its own digital currency to its usual arguments against cryptocurrencies.
Bitcoin.com News spoke with Chiagozie Iwu, CEO and co-founder of Naijacrypto, to better understand the dynamics and their effect on the Nigerian crypto industry. All of those questions are answered by Iwu.
Chiagozie Iwu and BCN
Can you tell us how the CBN Directive impacted your company in a few words? BCN (News from Bitcoin.com) inquired. The CBN policy prohibiting banks from cooperating with crypto businesses, according to Chiagozie Iwu (CI). They had to transfer money to other accounts and first closed our bank accounts. They stopped taking fiat deposits but continued to accept withdrawals. Clients were no longer discouraged from withdrawing money as a result of this change. As a result, reserves were reduced and confidence was maintained. Certain international exchanges have banned both deposits and withdrawals, driving up the price of bitcoin versus the naira.
BCN then inquired whether your firm was collaborating with Dash in Haiti to launch a cryptocurrency exchange. Why is Haiti about to exit the Nigerian market, and does this imply Naijacrypto will follow suit? CI said that the Dash cooperation to expand Haiti had been underway for months before to the CBN order and was an initiative of the Dash team in collaboration with Naijacrypto. He also included a springboard. We exploited Haiti to get access to Caribbean markets, since the Caribbean and Latin American markets are their next destination after Africa.
Plans for International Expansion
BCN inquired whether they wanted to expand into other markets as well. Yes, according to CI’s answer. They want to open operations in 12 African and Caribbean countries by the second quarter of 2022.
BCN went on to question whether they believe the CBN has dampened young Nigerian enthusiasm for digital currency. Nigerian youth’s enthusiasm for digital currencies has not waned, according to CI. P2P exchanges like Paxful and Binance p2p made significant development during this time. Recently, the government has shifted its focus to more clandestine marketplaces, excluding bitcoin trading from authorized exchanges like Naijacrypto and Luno.
CBDC does not have a blockchain.
BCN requested that reports indicate that CBN would begin testing its CBDC or e-naira in October of this year. For Nigeria’s digital currency industry, and whether or not this is a positive thing. In response, the CI said that, in terms of CBDC, he does not believe this varies from what banks are doing now in terms of online banking and other services. In fact, the kinds of electronic transactions are the same as those used by CBDC. As a result, financial inclusion has not progressed any farther. The CBDC lacks a blockchain, making it non-decentralized and therefore unappealing to members of the crypto community who support decentralization and oppose government authority.
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The cbn nigeria is a Nigerian cryptocurrency exchange. The actions of the CBN increased activity on the black market, leading to more people trading illegally with cryptocurrencies.
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