Cryptocurrencies are gaining popularity in Africa as they provide convenient and fast ways to invest, make cross-border payments and send money. Compared with other regions with perfect infrastructure and services, "convenience and speed" is what users in Africa need most. After entering the words "cryptocurrency, Africa" on Google, the name of a West African country - Nigeria (Hong Kong translation "Nigeria") is frequently seen in the search results. Nigeria is the largest cryptocurrency market in Africa and one of the fastest growing cryptocurrency markets in the world. However, the Central Bank of Nigeria (CBN), the Nigerian financial market regulator, issued an order on February 5, 2021, requiring all banks and financial institutions in the country to immediately close cryptocurrency accounts. The rationale is that cryptocurrencies carry significant risks, and their anonymity and opacity may facilitate criminal activities such as money laundering and terrorist attacks.
Two days later (February 7), the Central Bank of Nigeria issued a five-page press release stating that the government’s position was “to stop the use of cryptocurrencies in order to protect citizens and the financial sector from cybercriminals,” and again. He reiterated that "the prohibition of the use, holding, and trading of cryptocurrencies is a regulation that has been implemented as early as 2017, and a second reminder was issued in 2018 to call for attention and implementation number list from all walks of life." In addition, the Central Bank of Nigeria has also warned cryptocurrency traders that users will face severe sanctions for violating the country’s “CBN Decree” promulgated in 2007. All in all, the two key points of the Central Bank of Nigeria press release are: first, announcing a ban and not recognizing the legality of cryptocurrencies; second, paving the way for the legitimacy of a new policy – the Central Bank of Nigeria issues a digital currency (CBDC). The Nigerian central bank's February press release drew mixed reactions from the public. Some applaud banks for cracking down on opaque digital currencies.
While others question the policy’s goals, criticizing the policy for stifling young people’s chances of using cryptocurrencies to get out of poverty; and even some stakeholders criticize central banks for being short-sighted and not seeing digital currencies as a means of economic growth. sharp weapon. It has been more than eight months since the ban was issued. How has the Nigerian government’s cryptocurrency ban affected private business activities in Africa’s largest cryptocurrency market? First African country to launch a central bank digital currency The statement issued by the Central Bank of Nigeria emphasizes that "the prohibition of cryptocurrency transactions is to protect citizens and the financial sector", which is not a justifiable reason. There are many types of cryptocurrency scams in African countries, and the specific circumstances are different. What they have in common is that "cryptocurrency helps you get rich quickly" to attract investors. Many people paid membership fees and other additional fees, but never received high returns. When they woke up.