Member-only story
EXPLAINER: How Nigeria’s Ban Lifting On Crypto Affects You
Friday, December 22, 2023, marked a watershed moment for Nigeria and the African continent. After a two-year ban on cryptocurrency transactions, the Central Bank of Nigeria (CBN) lifted the restrictions, signaling a shift towards regulation and recognition of the digital asset’s potential. This move reverberates across the globe, raising questions about the future of crypto in Africa and its implications for the Nigerian economy.
From Ban to Regulation: A Complex Journey
Nigeria’s initial 2021 ban on crypto stemmed from concerns about money laundering, terrorism financing, and the potential for financial instability. However, this stance faced significant criticism from the growing Nigerian crypto community, highlighting the limitations of a complete ban and the need for a more nuanced approach.
Recognizing these concerns, the CBN revised its stance. Rather than outright prohibition, it opted for a regulatory framework. This move signifies a mature understanding of the evolving digital landscape and an acknowledgment of the growing relevance of blockchain technology.
