Topic: Despite CBN’s clampdown, Nigerians traded N316.9bn bitcoin in 2021 (Read 210 times)

Majority of the central banks around the world will call for an outright ban on cryptocurrencies and it is not different in Nigeria, even if they clampdown on business entities dealing with cryptocurrencies it is not that easy to identity P2P transaction unless someone is dealing in huge number of transactions from random users all the time, if you are dealing in small amounts then there is nothing to worry, but once you start dealing in huge numbers it is possible to track them as well.

With the high taxation imposed in India, majority who are dealing in huge numbers are moving out of the country to safe heavens and that will happen with countries that are coming up with regulations that are hard to make a substantial profit.

I wouldn't even called that a ban if not for the fact that they stop fluvterwave from giving access to customers to fund centralized exchange accounts but that's fine to me, I like the way people has been operating but I don't bother my self going that extra mile, I have a local vendor as friend that is ready to buy my sats any time any day.
I don't want to bring much talk about Nigerian government and crypto thing but if they called this step as a ban, then they are the most brainless group of government to make move against the use of Bitcoin and Altcoins.

Crazy ideas from "Putin team". Like in Niger dictator will buy and sell cryptos, and not pay taxes, like a fuel prise with max siscout forvdictators transportation companies...

Well according to what is saw on the news recently and the statistics on the news show that e-naira have witnessed a wide range of adoption and is rated as the most adopted central bank digital currency globally and these statistics were arrived at using the number of wallet download over the period it was launched if that is through them to some certain extent the central bank of Nigeria may be having a good time with their e-naira project but my question is what is the user base of the naira and what the feedback of the citizens is and how their reaction toward this new currency.

Some countries impose regulations but don't actually prosecute if people don't follow them. Perhaps the situation is similar in Nigeria, where one can use p2p exchanges just fine and not really fear facing persecution? I see that they fined some banks, but it's a separate thing, I'm talking about individual traders. Strict regulations are still bad, of course, because while those who were already into cryptos might stay in the industry if there's no harsh punishment, new people will be more reluctant to explore cryptos if it's illegal to transact into banks. And they mean people can't be operating legally and thus no taxes are getting into the budget and no big businesses can start.

Central bank is not the same as the government, the central bank is controlled by the government but the banks are controlled by the central bank. If the government do not say anything about cryptocurrencies  yet, but the central bank banned it, that is still possible but not beyond the jurisdiction of the the central bank which is not able to restrict centralized exchanges, that is why many Nigerians are still using centralized exchanges for the p2p trading. But the best for total control is to use decentralized exchanges.

If CBN wants to fine banks, it should fine all banks because all Nigerian banks are used for cryptocurrency payment but in a way it is a transaction CBN can not track to buyers and sellers, that is why it is not good to include cryptocurrency as the purpose of making the transaction like that. The banks that were fined are fined because of others reasons which is against the CBN rules against cryptocurrencies.

Nigeria is definitely a poor country from the perspective of "per capita income". They are 131st country in the list of per capita income. Probably that's the best for Africa considering Europeans have sucked out the wealth of Africa for over 300 years.

So seeing such a statistics and then looking at a trading volume of 316.9 Billion of local currency, is really amazing. That what shows the power of crypto and its life changing abilities.

Can we really say there is a difference in opinion between the CBN and the Nigerian Government? or better still, is the CBN different from the Government? Even for those that are trading in centralized exchanges, at the end of the day, they end up withdrawing via P2P which is the only different thing now and before the Ban. The news generally is a good one considering that some banks are still being fined for allowing crypto transactions. NIGERIA FINES 3 BANKS FOR FLOUTING CRYPTO TRADING RESTRICTION ORDER

I think it high time government should stop enforcing the use and implementation of CBDC on the citizens, many countries that have successfully launched their cbdc have nothing to show forth in term of the progress because it does not meet the major demand of what's expected by the people and the government tries to replace the effect of bitcoin with CBDC. I cam across an article that shows how the citizens of Nigeria losses interest on their E-Naira digital CBDC which was launched by their government last year and this article am about to give a link to will explain the whole situation more: https://nairametrics.com/2022/04/05/nigerians-interest-in-enaira-declines-in-favour-of-bitcoin-and-other-cryptocurrencies/?amp=1

This is largely dependent on the next set of individuals that gets into government in Nigeria. Crypto friendly individuals will result to crypto friendly policies and likewise. if the persons especially their head is crypto friendly and secretly part of Nigerians that have contributed to this large trading volume of bitcoin, this individuals can certainly push to reverse the ban on bitcoins and make bitcoin legal for use in the country. This will be a big boost to economy, and something that will influence the decision of other african countries as regards crypto. We hope to see it soonest.

Nigerian is not a poor country, but if their wealth is compared to their high population, then many people in Nigeria are living in poverty, but if comparing the GDP, Nigeria is the highest in Africa, but they should have higher GDP with their high population.

It depends on the extent of the ban, like in Nigeria, the CBN ban bitcoin, not the government, the government are yet not saying anything about it. Nigerians still use centralized exchanges for trading bitcoin and also using decentralized exchanges, some also trade directly trade peer-to-peer.

Over a third of the Nigerian people have invested into cryptocurrencies. So it isn't a big thing to see this traded amount to be big. Even after the clamp down such a high reach shows the attachment of the people with the cryptocurrency. Against the inflation and the poor governance people are much into cryptocurrency and that is what drives them to find ways to use it. The majority of the usage comes from the youth population of the country. The government keeps trying to block the usage of cryptocurrencies within the country as the Naira value keeps depreciation with the increasing usage of cryptocurrencies.

Someone should found a nigerian crypto exchange or p2p network called "Nigerian Princes". That would be the greatest thing ever.

Its great that p2p remains functional. What would be even better is if better methods than the "show ID" method were devised to authenticate identity and crackdown on scams prevalent in p2p. Some form of crypto credit check or background check. Along with a method of collateral. Similar to what banks have when they calculate terms for loans. Those steps could make p2p more reliable and less prone to fraud.

Ebay does well with user feedback ratings, that could be another good system for crypto p2p to adopt. To make it easier to trade and do business with reliable partners.

That amount will give you idea how much their government is losing from the possible taxes of this market.
I hope they will realize very soon that banning is not helping their goals to cater the needs of their people.
Whatever they can possibly collect can already assist so many government projects.
Maybe, sooner or later, they will change their position once they are seeing that neighboring counties are benefiting from this market.

This figure represents the general Bitcoin transactions in Nigeria within the 2021 fiscal year this is a reflection of the positive notion of Nigerians toward cryptocurrency/BTC and Nigeria is among the highest in term of global cryptocurrency adoption and the African Cryptocurrency headquarter this positive adoption comes majorly from the youths who have shifted their attention to blockchain technology and it related development. The government of Nigeria at the moment may not think in the direction of Bitcoin regulations and cryptocurrency taxation may be far from possible in Nigeria but with the general election around the corner and a change of government coming the only viable presidential candidate the present vice president of Nigeria is a Bitcoin fan and there is a high possibility of Nigeria Bitcoin adoption from the year 2024 if he becomes the president of Nigeria.
Am optimistic about the fact that Nigeria is going to be the first country to make Bitcoin a legal currency in Africa as most other African countries like 🇬🇭 Ghana are making their central currency the Ghana Cds the only acceptable currency within the country which is viewed as a currency restriction policy it shows the hight the Ghana government could go in protecting their currency against other external currency which Bitcoin is one of them but the only advantage with Bitcoin is Bitcoin is a decentralized currency and its transaction can be done on p2p network.
So in conclusion Nigeria's Bitcoin adoption is not a new thing and this figure shows how Nigerian have made cryptocurrency their alternative currency in practice, this figure shows the general adoption ratio of Bitcoin in the west African country Nigeria there is a projection that Nigeria is going to be a Bitcoin country by the year 2024 when the present democratic government is a change to another President and a new CBN governor is appointed that will have the ability to develop a policy that will accommodate Bitcoin in the financial system and with a young President that knows the decentralized financial institutions, and the many developmental possibilities in the blockchain for the countries financial institutions.

It's really short sighted of the Nigerian government to put so many obstacles in place but I can understand some of their feeling why they want to ban cryptocurrency. Unfortunately they're suffering from an insurgency in parts of their country, which basically means they do not have proper government control of some regions and they are obviously trying to crack down on any sources of funding to such militants. However they need to understand that it's like trying to regulate wind or the oceans, it's going to keep moving whatever steps they try to put in place so they should encourage open reporting and keep taxation of it to a minimum. They could then use that legitimate funding to provide better services to the people of Nigerian and potentially help quell unrest.

Government can not ban cryptocurrency. I think this information has come to the air some years back concerning Nigerian government banning cryptocurrency not to transact with Nigeria CBN, i hope Nigerians who deem it fit to use cryptocurrency. Is running cryptocurrency transaction with P2P for long time. With what is happening in Nigeria show's that cryptocurrency has stand since government is working down on their transaction with banking system still people in such jurisdiction is still using bitcoin for p2p transaction and other exchanges

Good! This whooping volume tells us, it is "practically" very very difficult to "ban" cryptocurrency. You can make laws and what not, but the reality is something different. 316.9 billion is a huge number, especially for a poor country like Nigeria. Centralized exchanges are indeed a risk for those countries where government has either imposed ban or not positive towards bitcoin. Because centralized exchanges are bound to follow the rules of the land where they are operating in. That's not the case for P2P exchanges or Decentralized exchanges. That's exactly where the game changed for better and Nigerian government is loosing a huge amount of tax revenue for their stupidity.

The central bank of Nigeria ban crypto exchanges and other crypto institutions from transacting directly into banks in Nigeria, Nigerians that are using exchanges that can be used to directly purchased bitcoin from banks were unable to purchase bitcoin because direct bank transactions was disabled after the ban. According to the news, Nigerians turned to using p2p which can be done between two people like on this forum, on decentralized exchanges and also on some centralized exchanges. I am not using this to advise people to use centralized exchanges because you do not have complete control over your own coins.

Despite CBN’s clampdown, Nigerians traded N316.9bn bitcoin in 2021


CBN do not call for regulation but for ban, the countries that are regulating cryptocurrencies are even making it difficult, example is the new crypto law in India that wants crypto capital gain tax of 30%, that is huge. As cryptocurrencies has not even be regulated in Russia, the Russia banker wants crypto users in Russia to only use exchanges which they are controlling or they should use noncustodial wallet address that is registered with them.

Another no privacy from Russia Bankers

More regulation is making no privacy possible.