CBN Moves to Regulate Cryptocurrencies in Nigeria, Plans Framework
- The Central Bank of Nigeria is planning a regulatory framework for the adoption of cryptocurrencies in Nigeria
- The bank said in a document that it would consider the development of the framework on stablecoins
- But analysts have faulted the move following the wide failure of the e-Naira in the country.
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The Central Bank of Nigeria has stated that it will issue a regulatory policy framework for the execution of cryptocurrencies in Nigeria.
The apex bank disclosed this in a report on Nigeria’s Payments System 2025.
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Adoption of stablecoins coming
The CBN had banned crypto trading in Nigeria and stopped banks from carrying out crypto-related transactions by commercial banks.
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According to the document, the CBN would consider the development of a regulatory framework for possible implementation.
The CBN intends to develop the framework for the transaction of stablecoins in Nigeria which are always tied to currencies around the world.
The bank stated that it will continue its monitoring of Initial Coin Offerings as well as work with the Securities and Exchange Commission to develop a regulatory framework in the event of crypto adoption of an ICO-based investment solution.
Stablecoins are cryptos whose value is pegged to a country’s currency or a financial instrument which provides an alternative to high volatility, commodity or financial instruments, according to Investopedia.
CBN maintains crypto transaction is illegal
The Central Bank of Nigeria banned crypto-related transactions in Nigeria claiming that it is used for money laundering and terrorism financing.
The Punch reports that CBN’s Director of Corporate Communications, Osita Nwanisobi stated that the ban on crypto transactions would not impact negatively the fintech space.
He said:
“The use of cryptocurrencies in Nigeria is a direct contravention of existing law.
“It is also important to highlight that there is a critical difference between a central bank-issued digital currency and cryptocurrencies.
“As the names imply, while central banks can issue digital currencies, cryptocurrencies are issued by unknown and unregulated entities.
“The question that one may need to ask therefore is, why any entity would disguise its transactions if they were legal.”
Experts have faulted CBN’s planned adoption of stablecoin considering the failure of its CBDC, the e-Naira.
According to them, the implementation of the policy would not yield the desired result and have no significant impact on the economy.
Nigerian crypto investors show billions of dollars credited to their accounts in error
Legit.ng reported that several Nigerian cryptocurrency investors have shown massive amounts of money running into billions of dollars credited into their wallets in a global glitch that made many momentary billionaires overnight.
After Legit.ng reported a story of Chinedu MacGordon who woke up to a bloated cryptocurrency account, many took to the comment section Legit.ng’s Facebook pages to share screenshots of what they found on their Coinbase wallets.
Many reported a snag in withdrawing the money found in their accounts. Some users saw billions of dollars in their accounts.
Source: Legit.ng
