Bitcoin Forum

On February 5, the Central Bank of Nigeria (CBN) released a circular addressed to banks and other financial institutions with the directive that transactions in cryptocurrencies and facilitating payment for cryptocurrency exchanges were prohibited.

A news was published on the popular country news paper were the CBN president ( Central bank of Nigeria)  was analyzing on their plan to launch new digital currency which he called the E-naira. Full news here : https://www.usnews.com/news/technology/articles/2021-07-27/nigeria-to-launch-digital-currency-e-naira-in-oct-central-bank
Since the ban of crypto on the country no exchange has ever been able to execute a fair transaction to citizens account, which makes most of the exchange popularly used by the citizens has made move to launch and active P2P trade to enable the citizens trade successfully.

My questions here is, the county launching it's digital currency does it means that they have accept and approve the use of cryptocurrency?

What's do you think about their decision, do you think it will have great impact on crypto?

No. Just as China has CBDC (digital Yuan), but ban decentralized currencies like Bitcoin.

Alright but that will be very bad, because the country has been rated highest on the number of countries which citizen's are into crypto, they have been ranked 1st in Africa if am not mistaken.

It should be "ban" not "band" because "band" is something else (I'm thinking about Nirvana).

Anyway,

That's a totally different thing. CBDC is not equal to cryptocurrency, especially the in its definition related to no trusted 3rd party (decentralized). They are more likely to approve only CBDC.

Interesting to see "the war on currency" with CBDC vs crypto (especially Bitcoin).

Interesting turn of things after making people to retreat away from the original cryptocurrencies like bitcoin!
 
So how will this regulated currency run...Will it be pegged on the Nairas performance makingit a stable coin, will it be be a regulated coin,will this have s fixed supply or the government will be free to mint has many new coins as they like....I guess I have found myself 3ith more questions than answers.

Very true which is why almost crypto projects we have today always want to tap into this market because the country has the numbers to stimulate demand once it gets them interested.

CBDC’s are centralized government shitcoins, nothing more & nothing less. Where there is a demand for decentralized currency like bitcoin, the people will find a way. It really isn’t hard to use Tor & or a VPN.
Governments are powerless to stop this tidal wave.

I must tell you I doubt the success of that cryptocurrency Nigeria government want to create if the ban on cryptocurrency trading still stands in the country. How will the coin the traded with the involvement of the Cryptocurrencies exchanges which it has banned its citizens from using in trading crypto.

Thanks for the correction,  Ban was what I meant to say. It was a typographical error.
Mistake will be corrected.

If this is official, that doesn't make them accept crypto.

There's an exemption of it until validated by their government that they're adopting crypto and as well as making their own CBDC.

But if there's no close and official statement towards adoption of cryptocurrencies, consider that as a no for them even if they'll launch CBDC.

Nigeria is the largest Africa country and a good place for cryptocurrency market. Its a welcome development.

Nigerian Government as well as China are seeking ways to profit from cryptocurrency. The good side in both cases is recognizing the technology of crypto. On the other hand, adoption of the digital currencies depends on the masses. The action of both governments will not necessarily influence mass adoption. Blockchain and crypto has a lot to do with freedom of choice. People will only key in if they find the government digital currencies worth while, otherwise it may not make any difference.

Ban and create new. Yes, sounds like China.
They all want a centralized token and that's for tracking everything so that the people can't keep huge funds and increase the demands.
Sure it will be 1:1 but you will not escape payments even for a mere parking ticket if they can control your money.
The government won't even need your authorization and they could just take the money from your wallet or worse, freeze them until you pay the tickets.
It's not really different from the banks, it's just improved.

I am afraid no. They want to replace ordinary crypto currency like Bitcoin and Ethereum with their digital state currency. When they launch it, Bitcoin will still be a rival for it, so they will forbid it.
What comes to E-naira,it will still be regulated by the government. The main feature of digital money is decentralisation and uncontrollability from authorities, but digital E-naira, rubles, yuan will be under regulation, so it is the same as just non-cash money but on blockchain instead of bank account.

It depends how countries launch their CBDCs, as blockchains or as tokens that can be used on multiple blockchains- USDC. If we can get E-aira on Ethereum, Polygon, and NEAR protocol we can use it for DeFi. Nigeria would be better off if more people used its currency so they need to play this smart.

This doesn't mean Nigeria is not active on crypto space or doesn't accept crypto as you said earlier we have P2P trading. To me I such love this idea and less charges without hassle, launching it's digital currency it is likely from world bank so I don't think if Nigeria has any options than to accept back cryptocurrency and to allow it trade freely without restrictions. Since they set limits many exchange going back p2p has made most being actively used by Nigerian.

Not really sure too but as you can see China through their digital Yuan and Turkey with their native CBDC too was also developed but it's not decentralized so far i know, Maybe E-Naira was same with it when it was centralized, Not sure too.
Maybe Just a little impact on the crypto market but have an huge impact for The Blockchain Technology itself.

CBDC won't have negative effect on crypto because they are just like USDC and USDT, they are still Fiat in digital form only, presently Nigeria is one of the biggest crypto adopters as per binance information, even CZ testified about this, let CBDC comes it won't make any difference

So far we still see that all countries have not agreed on the pattern of crypto being applied in a country, but Nigeria is starting to try to adopt the pattern that is currently being done by crypto, although they do it differently, but this pattern is a way to keep pace with the growth and development of crypto.

Nigeria tries to restrict its citizens from fully using this pattern, thus forcing them to give up their own digital currency to maintain its stability, in this case it is indeed a good idea for the country to start opening its own digital money, to keep its citizens from making transactions.

So far, crypto has not had a big impact with Nigeria's implementation and prohibition, in fact one day crypto can work well with various countries that are starting to open up space for digital money.

I think that is a good development, for a country like Nigeria to have their own digital currency, being the biggest county in Africa and one of the populous county on the planet Earth. They have the population and the market to drives it. If I can remember few months ago, the apex bank of the country ban all transactions on Crypto and also instructs it's local banks to also close down all Crypto related accounts. This made lot of traders in the country to resort to P2P mode of trading. It's a good one to start with maybe later in future they will also adopt the use of Crypto fully.

The article title is wrong as the difference between cryptocurrency and digital money is different. When Nigeria creates a digital currency, it will be centralized and therefore will not be a digital currency.
I also do not think that Nigeria has the necessary infrastructure to build an effective monetary system as an alternative to the current monetary system, and that these systems are characterized by high transparency, which is something that many African countries do not like.

Every country that has started to launch a digital currency, of course, has considered many things, both the negative and the positive side, but not necessarily countries that have started to make digital currency, begin to accept and approve the use of the cryptocurrency.

This is done as a pattern to maintain the stability of a country in maintaining fiat currency, so digital currencies must be created to compensate, in the end the country will prohibit all its citizens from mining other than digital currencies issued by that country.

They prohibit the cryptocurrency which are decentralized that is the reason they created their Etoken anf launching it for public use alongside they also banned cryptocurrency. Complete decentralization gives opportunity to trade via p2p but it has its own risks.

It can be said that the use of cryptocurrency has been accepted because the country has developed cryptocurrency technology so that it can create its own coin for the country, even though the country has made rules that must use its own country's coins, the good impact means that the country is modern and has followed developments technology like other countries

Thus the survival of cryptocurrencies is running normally at this time, the more countries that start to adopt it, the better the crypto conditions in the future, this is very good for the future.

Likewise with the country, they have started to think about how to make their own digital money and develop a perfect plan, I think countries that are starting to think about this, it is very possible that in the future they will legalize crypto to live, thrive and coexist with fiat currencies.

Developed countries will never be allergic to a development that occurs, they will balance the new thing, so that what was initially considered a threat, is an advantage that can be maximized.

This is what distinguishes developed countries from developing countries, I think what these countries have done is correct, while maintaining fiat currencies and continuing to prepare for new digital currencies.

in fact it is all a contradiction, first they prohibit the use of cryptocurrencies but only to introduce and then profit from their centralized national crypto (E-naira) i call it opportunism, the desire to gain in exclusive money from a new sector

Well, as what I had researched when I saw this news, I see that the country Nigeria is the one that has the highest number of cryptocurrency users in all of Africa and the world. With that being said the government must have formulated a way for the people to continue using cryptocurrency but at the same time be able to use the only cryptocurrency for Nigeria and that is their own crypto. I think the government might be cashing in on a potential money making method for the government.

They want to manage the flow of money and avoid the loss of assets abroad. Just like how China banned cryptocurrencies from trading, China's central bank has been testing its national cryptocurrency.
Nigeria's economy is still young so the move to ban cryptocurrencies is only in the national interest in the long run.

IMO, I think if Nigeria will successfully launch its own cryptocurrency, I believe it is a form of stable coin or CBDC, backed by its own fiat called *Naira, and it's not the same as the popular cryptocurrencies in the crypto market. Just like the digital *Yuan of China is a stable coin or CBDC so its value was pegged on its own native fiat currency.

And for me, it's boring and out of purpose, because the main reason why many people have using cryptocurrencies is for their own requirements like investment, trading, etc., and not just purposely use to buy goods and merchandise, unlike the CBDC's that was made for that sole purpose for payment that's why CBDC's will not be able to replace the cryptocurrency functions in the market.

Nigeria is not so big in crypto as China for example. I think it's not gonna influence market and crypto in whole really much.

Lols,
I don't see any progress and hard working concerning the development of her native cryptocurrency. There is no news over after instructions has been given partaking the development so the government still make no efforts to effect the world bank authorities.

The government of Nigeria didn't ban Cryptocurrency. They only simply asked commercial banks to stop processing crypto related transactions. The citizens are free to trade on Cryptocurrency at their own risk. Actually,the current president of Nigeria is half literate. He doesn't understand new money, he thinks bitcoin would overthrow his government. Nigerian youths don't care about the government position, it's just an outdated opion of the apex bank.

if i may ask do you know that is applicable to ban?
now without commercial bank how do you think individual could make withdrawal and deposit to their various accounts after trading or buying from any other trading platform. don't you know with the help of P2P this was able to pass bye and any local account related to cryptocurrencies were frozen.

It will become a great news if the government can cancel the ban on crypto and about that launched I Mt ink it a good idea if it can happen but the government of Nigeria are not helping the situation i  hope they actually can come to sense and lift the ban on crypto first. Nigeria is number one in African but the economy of the country are not help due to lack of tariff and non-tariff barriers to trade, obstacles to investment, lack of confidence in currency valuation, and limited foreign exchange capacity.

I thought they didn't put a full ban on crypto currencies. I have read in this forum that people were still using and trading crypto currencies. It is just that the government has ordered that any financial institution cannot be involved with crypto currencies, hence not allowing banks to process any transaction that involves crypto currencies.
Not really. It means they hate decentralized coins but wants to use blockchain tech on their current financial system.
I doubt it's going to have any impact at all. Wouldn't be surprised if they reverses the ban.

First, it won't be a crypto in the sense that there'll be no mining. No state would ever dream of launching such a currency.
Secondly, it's just an attempt to try to block the advance of bitcoin.
There certainly seems to be a marked increase in bitcoin and cryptocurrency adoption going on in Nigeria: the country has risen to second place overall in the world in terms of volumes of BTC traded.
According to Chainalysis data, the volume of bitcoin received by Nigerians in May totalled $2.4 billion, compared to less than $0.7 in December 2020. There has been more than 200% growth in five months.
This increase is also noted by analysis of combined exchanges on P2P platforms LocalBitcoins and Paxful.
So, forget about e-naira and focus on BTC.

I do not think that launching their own cryptocurrency will open doors for all other cryptocurrencies. Probably they legalize the use of their own currency and making use of all other crypto based coins and tokens will still remain banned. Because, only this way they could push their people to use cryptos under their all control rather than allowing a decentralized one.

I believe this must be one of the easiest way for most governments to allow to making use of cryptocurrencies still they have control over the money flow. But, honestly people will miss the benefits of bitcoin kind of speculative assets which will make such government specific cryptocurrencies to die over the time.

It seems like the greedy politicians want to do a fund raising which can line their own pockets - the best way to do that is ban any competition and then launch your own product. If they really had faith in their own cryptocurrency then it should be able to compete without any artificial censorship. I doubt many people in Nigeria will really be that into it considering that most of them will already distrust the government.Those sort of tactics tend to be taken by unstable and irrational officials who might just as easily back track if the project is a failure, causing any early investors to potentially lose a lot of money. I doubt it will be backed by much in the way of physical assets.

Yeah, in a way this is a big recognition that cryptocurrency is something they know can be the best alternative to fiat and that is why it is introducing its own...and that is where the big mistake is. When you create your own centralized cryptocurrency thinking that the people will adopt it broadly, openly and without any complaint is a pipe dream which political leaders in Nigeria must be entertaining right now. What they don't know is that with them at the helm and at the control buttons of this new cryptocurrency, this ship is bound to fail and will eventually go down the drain...just like the Petro in Venezuela which is now essentially gone to the grave.

it is not new mate, China did the same thing in Digital Yuan , banning bitcoin but creating their own crypto .  Nigerian people supported bitcoin there are even many of them who invest in this coin so there might be some impact but not that big and eventually will subside because there are many country that will support bitcoin after they abandoned the support.
and also their people will surely continue this support even if they will totally banned the coin.

Nigeia is not so big as China, but if right step is being taking on this their move to create it's own digital currency I think it will have a great impact on the crypto space, especially if the country then accept the use of crypto currency.
The country is not so big, but current analysis shows they are the top one countries making use of crypto.

That country has a large volume if you're going to search it on those platforms and exchanges that supports that country. They can influence on their own market locally.
And there's for sure the impact that will happen regards to this news but just as any other country that promotes their own crypto, it won't be volatile just as the typical crypto that we know.

This is a very great development for Nigeria, because the way cryptocurrency go viral in the entire world, countries that are under develop or develop countries. Cryptocurrency help in the development of country because cryptocurrency is an advance technology so countries willing to develop or advance need digital currency for trading and exchange of good and services. So for Nigeria as a country to launch cryptocurrency is a good development for the country.

But I don't think they will be accepting cryptocurrency, it is more of developing their own digital currency so they still have full control about its circulation. But if nothing else, once they launched this digital currency, their citizens will be oriented on how digital currency works and so it may pave the way on learning how to use crypto. Maybe this is why they ban crypto because they have plans of creating their own digital currency.

I really want to ask a question, is there any difference between the state's issuance of encrypted currency or the aforementioned China's issuance of digital renminbi and the state's issuance of currency? Can the digital renminbi issued by the state be issued more? Is it also controlled by the state? It is also centralized. Is it different from using banknotes now?

If there is no difference, then why should the country issue digital renminbi? The biggest feature of Bitcoin is that it is open and transparent, non-tamperable, and fixed in quantity. If it does not have these features, why should we accept cryptocurrencies issued by the country?

I recently read an article about bans in China, Nigeria and Turkey. It's all being solved quickly, these countries are already figuring out how to get around this ban. https://blockster.com/blockdesk/1385_3-countries-where-crypto-is-banned-and-why

Get around the ban you said! The only perfect way most of this countries have been using to get pass this ban is by making use of the p2p system, which in Nigeria if you make a mistake by adding any currency language on your transfer statement, you get you account blocked.
As big as Nigeria is and the growing mass adoption of crypto in the county to the extend they are on top 1 list of countries using crypto. I think the Government has no other choice that to accept it in times coming and makes it a global payment, publicly accepted.

Nigeria is not a China and it will not make such influence on market. I haven't even noticed that Nigeria banned crypto TBH.

They plan to launch it through five stages. E-Naira wallet can make noise in Nigerian communities and bring more Nigerian people to crypto market.

Nigerian Central Bank Reveals CBDC Guidelines, Announces Plan to Launch E-Naira Wallet (https://news.bitcoin.com/nigerian-central-bank-reveals-cbdc-guidelines-announces-plan-to-launch-e-naira-wallet/)

It will increase crypto adoption in Nigeria but it won't be too good if Nigerians will be forced to use E-Naira wallet. Do they have choice to use Peer to peer marketplace, and ignore E-Naira wallet?

As long as as the Nigerian digital currency is centralized, even with the so-called E-naira as long as it is not anonymous every cryptocurrencies users will keep off and distance themselves from it, before the introduction of the  digital currency by the CBN,  there is an already increasing and growing numbers of cryptocurrencies users in Nigeria, statically the volume of Bitcoin traded monthly is huge infact Nigerian is ranked second by paxful in the number of  P2P trades and almost $1.5 billion volume of trades was made in the first quarter of this year,