- The Nigerian Federal Government is cracking down on exchanges, such as Binance or Kraken.
- The major digital currencies, such as Bitcoin (BTC), Ripple (XRP), and USDT, are likely to be affected.
Nigeria, in an effort to stabilize the Naira (its national currency), has taken drastic measures including a Bitcoin ban.BTCThe blockage of major crypto exchanges also includes Ripple’s Ripple (XRP) and.
The rationale behind the Nigerian government’s action
The Financial Times reported Nigerian Communications Commission ordered Telecom firms to block customer access to Binance Coinbase Kraken and other key crypto platform websites. On Thursday, February 22nd, the Nigerian Communications Commission (NCC) ordered telecom firms to block consumer access to key crypto platforms’ websites, including Binance, Coinbase, and Kraken.
Bayo Onanuga confirmed that the government had taken action on the X Platform. stating The report by a local media outlet was accurate.
“Forex Crisis: Nigerian govt blocks Binance, OctaFX, Coinbase, others,” He noted.
Premium Times is the correct name.
Forex Crisis: Nigerian government blocks Binance OctaFX Coinbase and others https://t.co/cq6DoxqInj
— Bayo Onanuga (@aonanuga1956) February 22, 2024
In particular, platforms like Binance have played an important role in setting unofficial market rates for the Nigerian naira. This has undermined government efforts to regulate its value. The government wants to regain control of the naira’s currency valuation, and the move to block these platforms is in line with that goal.
Onanuga also reiterated the government stance, highlighting the need to prohibit cryptocurrency in order to prevent further depreciation. This decision follows the government’s ban on cryptocurrency trade from 2021.
In spite of regulatory restrictions, however, crypto transactions in Nigeria grew by 9% on an annual basis to reach $56.7 Billion in June 2023. Noteworthy, between August 2020 and July 2023, stablecoin transactions in Nigeria reached $60 billion. This indicates a strong demand for digital assets.
The Central Bank of Nigeria recently released a report on the CBN’s recent financial performance. approved The African Stablecoins Consortium is introducing a new stablecoin – the cNGN. Launched on February 27, 2020, the cNGN aims at meeting the regulatory requirements established by the CBN and the Nigerian Securities and Exchange Commission.
Financial Independence and the Ban on Bitcoin in Nigeria
Nigeria’s adoption by stringent measures in order to defend its currency highlights the challenges Nigeria faces when it comes to managing economic stability. Since the Central Bank lifted their dollar peg, in June 2022, the naira’s value has plummeted by over 70%.
The inflation rate in Nigeria was 28.92% in the last year and 29.9% in January. according To the International Monetary Fund. The economic turmoil has fueled the demand for cryptocurrencies such as Bitcoin and XRP. These are perceived to be a hedge against inflation.
As of the time of publication, major crypto assets had experienced slight drops in the past 24 hours. Bitcoin has been trading up after a recent rise. The average cost of a new car is $51,000.own By: 1.35%. The price of XRP is currently $0.534, which is down. By: 2.75%. The trading volume of XRP also dropped by 18% to $1.1billion. These price fluctuations are a reflection of the impact that Nigerian regulatory actions have had on cryptocurrency.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: www.crypto-news-flash.com
