April 19, 2024
Crypto Leaders Emerging from Nigerian Ban Acceptance
Policy & Regulation

Crypto Leaders Emerging from Nigerian Ban Acceptance

Olumide Adesina, a Nigerian finance professional, highlighted the Central Bank of Nigeria’s (CBN) goal to embrace digital securities in the country’s financial ecosystem. Adesina emphasized the strategic advantage for crypto players who collaborated with the CBN before the Dec. 23 lift on the ban, stating they are poised to lead the industry.

Engagement with regulators during the ban, as opposed to mere criticism, positions individuals as early gatekeepers in the evolving landscape. Notably, Nigerian crypto players advocating with regulators played a pivotal role in influencing the CBN to ease its stance.

Adesina praised the recent CBN circular lifting the ban, viewing it as a positive step toward financial stability. The renewed focus aims to integrate digital securities approved by local regulators into the financial system.

Addressing the impact on Nigerian crypto exchanges and peer-to-peer (P2P) merchants, Adesina observed lukewarm activity in NGN/USDT, a popular stablecoin, despite the surge in altcoins. He highlighted the influence of a new stablecoin issued through a collaboration of banks and local fintech companies, foreseeing its significant role in the P2P market.

Nigeria currently leads the world in P2P transactions, a consequence of the 2021 CBN ban, although these transactions incurred higher rates than standard forex rates.

Adesina cautioned against premature rate predictions for crypto exchanges, citing the need for them to become operational. Challenges persist for crypto exchanges in opening bank accounts due to Security Exchange Commission (SEC) regulatory license requirements.

Nathaniel Luz, co-founder and CMO of Flincap, previously noted the competitive landscape for Nigerian crypto-fiat exchanges and P2P merchants vying for the local market.

Photo by Emmanuel Ikwuegbu

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