Bitcoin has not reached the African and Asian countries like its counterpart Cardano. The CEO of Cardano, Charles Hoskinson, has already signaled his organization’s long-term stay in Africa to benefit from a potential market of $5 trillion. According to Hoskinson, he plans to run countries with the help of cryptocurrencies. A series of crypto promotions has already commenced in all major African States like Ethiopia, Kenya, and Nigeria. Thus far, the stance of many African governments has been pessimistic about cryptocurrencies.
The Central Bank of Nigeria (CBN) had imposed a nationwide ban on crypto trading a few years back. Godwin Emefiele, the governor of CBN, took this step to safeguard the position of the economy and federal reserves against the unpredictable and volatile nature of cryptocurrencies. However, recently he had reinstated his position about crypto regulations for the citizens of the country.
Nigerians to Acquire Legal Allowance for Investing in Digital Assets
The Deputy Governor of CBN, Adamu Lamtek, has told the local news TodayNG about government institutions’ current stance on crypto dealings. According to his media brief, the central bank does not wish to discourage the citizens of Nigeria from investing in digital currencies. The imposed ban has only been placed on private banks and financial institutions to stop dealing in digital assets.
Following the ban put in place by CBN, all major commercial banks were directed to close accounts belonging to crypto exchanges and cryptocurrency business transacting parties. In the aftermath of this ban, several accounts in Access Bank of Nigeria have been closed down. The Governor of CBN also dubbed the digital assets as illegitimate money that has no place in Nigeria’s monetary setup in the past.
BTC Raging at 70% Premium in Nigeria
Although the Nigerian government does not want to refrains retail investors from selling, buying, or exchanging crypto assets, there is still a huge lack of crypto regulations in the region. According to the reports by the Cardano protocols, the people of African countries have been suffering from carefree bureaucracies and corrupt government officials. However, the locals have started to recognize their potential, and the continent seems to move towards realizing its true potential.
The retail consumer market of Africa has the potential of generating trillions in the coming years. However, it should get up on its feet first before diving headfirst into crypto. Since the ban on crypto assets, Bitcoin has raved up in all major exchange platforms in Nigeria. It is valued at $57,349 in the USA, while it has acquired a high position of $97,509 in Nigeria. This transition is due to the imposition of a 70% premium on the flagship currency in the aftermath of the crypto ban policies.