The Central Bank of Nigeria (CBN) has banned Bitcoin and other digital assets, publish on 5th February 2021 by local news publication and also on twitter.
This is yet another developing horror story in our dying society. The Govt is now shutting down Cryptocurrency in a desperate move to block any ray of hope for the huge Nigerian youths.
Well what happens next?
dollar demand will increase, import dependent merchants will want to be paid in USDC or Bitcoin to solve resulting liquidity problems, every one becomes a one man crypto exchange and demand why naira falls even further. the world has moved beyond 1983 and Cryptocurrency is decentralized for this purpose. Making life difficult for account holders barely getting by due to the indiscriminate suspicion of financial institutions is tyrannical and primitive to say.
The responsibility of Govt and financial institutions is to admonish the public on the volatility of cryptocurrency and absolve themselves from indemnifying anyone who may suffer losses. The temptation of states to control the growing popularity of the decentralized network.
and the good news though is that no Govt can shut down Cryptocurrency. You will only lose the trust of the people further.
