CBN banned their banks, not cryptocurrency.


 




I am not surprised CBN prohibited the use of cryto in Nigeria; I literally saw it coming.

Let me give you some factual reasons why the federal government took such systemic decision.

You might be surprised!

Basically, the Central Banks are the primary financial institutions where money is legitimately printed in the world. This being the case, they somewhat control and direct the flow of fiat currency in and out of various countries.

Consequently, Central Banks' supreme power as the major legitimate generating source of a country's fiat currency, grants the government (of a particular republic) unrestricted access to the nation's wealth. They, the government, invariably determine what, where and how the nation's money is being spent.

However, the actualisation of cryto in the world's economy severed governments' control over the wealth of their nations. Well, the depth of such monetary disconnection is contingent on a nation's financial prowess in regards to blockchain technology.

For instance, the first world countries (USA, Britain, France, Russian, China, Japan, Italy etc.) owns the major cryto platforms in the world, plus, these cryto currencies are traded in virtually all nation. Technically, the founding countries of these digital currencies gets extreme financial advantage over other countries who trades with their digital assets:

Bitcoin — American

Ethereum — European countries

Litecoin — American

Tether — Hongkong

XRP — American

As it is, Nigeria is more disadvantaged trading in these digital currencies— She has less or no control over its mining. This makes Nigerian government handicapped over the direction of her nation's wealth.

A nation's control over its own financial institutions is a major determinat factor for its growth and advancement. This is why the world doesn't trade in same currency. Each country has its money [USD, Pounds, Dinar, Naira etc..]. How much more crypto-currency??

China banned foreign crytos too, because they have less or no control over their mining.

No country will consciously handover its wealth or, the flow of its wealth to another country. Thus, CBN's cryto banning decision.

It's highly probable Nigeria will mine it's own digital currency, just as china did, and might convert all existing foreign digital currencies owned by her citizens to its own. But this time, a 100% control of the digital assets will belong to the federal republic of Nigeria. So, expect homemade crypto-currencies anytime soon.

The Central Bank of Nigeria has released a ban on BANKS engaging in the use of Cryptocurrency in Nigeria. And NOT a ban on cryptocurrency in Nigeria

This circular has created an uncertainty in the atmosphere, especially in the crypto community like ours.

The circular did not ban cryptocurrency in Nigeria, the circular only ban BANKS from engaging in crypto exchange.

Central Bank Circular

If we careful read through the circular above, all the paragraphs of this letter only states that banks should not engage in crypto exchange.

None of this paragraph however state a ban on cryptocurrency in Nigeria generally.

Yes, they are charged to close any account engaging in crypto exchange but what if I don’t use banks? Nigeria banks.

We have seen several tweets and lots of people confused as to what then happens to the cryptocurrency community.

But let’s take a moment and think about this very well.

CRYPTOCURRENCY IS MEANT TO BE USE AS PEER-TO-PEER TRANSACTION IN THE FRIST PLACE, MEANING WE DON’T NECESSARILY NEED BANK EXCHANGE WITH THE WAY CRYPTO IS STRUCTURED.

The truth is, the Central of Nigeria has just given the citizens the more reason why they should fully migrate, to the use of Cryptocurrency in a peer-to-peer mechanism.

Cryptocurrency is not to be trade in the banks, because it is not created for such a de*d system as such.

Cryptocurrency is in itself money and can be used for buying and selling across board, with an amazing powerful technology hosting it.

The government therefore can not stop blockchain but they can stop THEIR BANKS from engaging in crypto. Well this certainly was expected all along.

There is absolutely no reason to panic at all, the ban is not against us, the ban is a catalyst to be used to archive our goal as a community.

It is therefore hightime we truly engaged ourselves in pure peer-to-peer transaction in the crypto space.


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