If you can't beat them, join them - The CBN and cryptocurrencies.

almost 3 years ago

About 4 months ago the central bank of Nigeria together with the government of that country, approved decrees prohibiting transactions with cryptocurrencies in its territory, this was motivated by the growing threat of cryptocurrencies to the Nigerian currency, the naira. In this way, the central bank could close bank accounts related to cryptocurrencies at its discretion, which greatly affected the country's major exchanges.

But now everything seems a little different 4 months later, as Godwin Emefiele confirmed that even with the veto imposed in February, Nigerians continue to use cryptocurrencies to a great extent, so the CBN has launched an investigation to conclude the extent of cryptocurrencies in the country and analyze the uses that can be given to them.

This has prompted banks to reinstate permission for accounts related to cryptocurrencies, and although it is not yet clear whether bitcoin will be adopted as a means of payment or investment from now on, it is not yet clear whether it will be used as a means of payment or investment.

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Again, we can see what Nigeria is achieving by being a nation that excels in the decentralized economy aspect, as despite the harsh restrictions, Nigerians ignored them and went about their daily lives, using cryptocurrencies to move their economy. And it didn't take the CBN long to realize that the bans were only making people more interested and even increasing the amount of cryptocurrency usage.

As this map on per capita bitcoin usage worldwide made by chainalysis in 2020 shows, Nigeria is the 8th most bitcoin-using country, but it has been 6 months since 2020 and maybe in the next report Nigeria will move up 3 or 4 steps.

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Now, what can we all learn from the Nigerian example? What if we keep fighting to establish a decentralized economy, where neither banks nor governments matter, it can be achieved. In just 4 months they managed to make the most powerful financial entity in the country bend, and this is because at least 60 million people use or have used at some point cryptocurrencies to buy and sell.

Of course, in a country with almost 200 million people and where 32% of the population uses cryptocurrencies without paying attention to the restrictions, the CBN had to do something to take advantage of that. Maybe we will see higher taxes on bank accounts that relate to cryptocurrencies or issue a cryptocurrency or CBDC.

In any case, Nigeria is a clear example of what constancy and unity do, now imagine if all people imitated that example worldwide. Don't you think that the entire traditional financial and economic system would be brought to its knees? I do, and I know it will happen soon, we just need a situation like the one in Nigeria, and from the forecast, it will happen very soon.