Why we kicked out cryptocurrency - CBN

[Charles-Tim]

I do not know how true this is for now. But if true, is it not surprising that CBN is thinking that creating bitcoin and other cryptocurrencies is like printing fiat, naira to be specific.

I am still surprised to see this online. Please, if this is a fake news, let me know.

These are the valid links:

https://twitter.com/TheNationNews/status/1664301760876359681?s=20
https://community.thenationonlineng.net/forum/why-we-kicked-out-cryptocurrency-cbn?xg_source=twitter

Obiora said members of the private sector, fearing that the CBN’s decision to print more money will lead to hyperinflation decided to create cryptocurrency as a response.

According to Obiora: “When the central bank started reacting to COVID with what we call printing money and responding to the crisis, a lot of people in the private sector felt that printing of money could lead to hyperinflation and these private sector people decided to respond by creating cryptocurrencies.

I read this and I think I understood it. Or am I not getting what is on the news correctly? Because I am surprised that an official from CBN can say something like that.

Or is he right?

[CryptoHeadlineNews]

I just read the article through the link you provided above, and from my own understanding I think the CBN was trying to explain the very reason why they ban banks from executing crypto transactions years ago in Nigeria, as follows;
That after the COVID19 pandemic, the CBN wanted to print more money so they could have more to spend, of which maybe the private sectors told CBN not to do that, that by doing that it could lead to hyperinflation of our currency, of which maybe CBN gave deaf ears, and as such the private sectors dived into using Bitcoin instead of fiats currency, which maybe got CBN upset, and as such made them place a ban on cryptocurrencies (i.e restricting banks) so as to frustrate those people into the private sectors (i.e private business men).

So that's how I understand it, but I don't know for others

[Mate2237]

I just read the article through the link you provided above, and from my own understanding I think the CBN was trying to explain the very reason why they ban banks from executing crypto transactions years ago in Nigeria, as follows;
That after the COVID19 pandemic, the CBN wanted to print more money so they could have more to spend, of which maybe the private sectors told CBN not to do that, that by doing that it could lead to hyperinflation of our currency, of which maybe CBN gave deaf ears, and as such the private sectors dived into using Bitcoin instead of fiats currency, which maybe got CBN upset, and as such made them place a ban on cryptocurrencies (i.e restricting banks) so as to frustrate those people into the private sectors (i.e private business men).

So that's how I understand it, but I don't know for others

Exactly. The FED afraid that cryptocurrency would overtake the fiat currency because the private sector has decided to abandon the fiat for Cryptocurrencies so with that fear CBN also stopped banks to transact with bitcoin.

Fed up with the antics of the cryptocurrency operators, Obiora said: “We kicked them out of our banking system because the opacity of the system is still a threat to financial system stability”.

I made more research to know if I can see the news from other sources and I will not take this news as a legit one. I am suspecting that bloggers published the news on the national newspaper site.

[Mr.suevie]

I just read the article through the link you provided above, and from my own understanding I think the CBN was trying to explain the very reason why they ban banks from executing crypto transactions years ago in Nigeria, as follows;
That after the COVID19 pandemic, the CBN wanted to print more money so they could have more to spend, of which maybe the private sectors told CBN not to do that, that by doing that it could lead to hyperinflation of our currency, of which maybe CBN gave deaf ears, and as such the private sectors dived into using Bitcoin instead of fiats currency, which maybe got CBN upset, and as such made them place a ban on cryptocurrencies (i.e restricting banks) so as to frustrate those people into the private sectors (i.e private business men).

So that's how I understand it, but I don't know for others

Exactly. The FED afraid that cryptocurrency would overtake the fiat currency because the private sector has decided to abandon the fiat for Cryptocurrencies so with that fear CBN also stopped banks to transact with bitcoin.

Fed up with the antics of the cryptocurrency operators, Obiora said: “We kicked them out of our banking system because the opacity of the system is still a threat to financial system stability”.

I made more research to know if I can see the news from other sources and I will not take this news as a legit one. I am suspecting that bloggers published the news on the national newspaper site.

Well I don't know how of much of adoption was going on in this country when it comes to the private sector and crypto currency use but my own take on the crypto ban was as a result of the inability of the CBN to trace or track crypto transaction that was going on with the fiat banks and the high level of fraudulent activities it was used for during that period in the nation. I don't know, but thats my take on this whole issue.

[Zanab247]

I go through d article, no single truth in some of d things Deputy Governor Economic policy said because I don't see any reason why government will be afraid of private sector that is trying to do some things that will reduce unemployment and eliminate poor transaction in the country. And he said they kicked out cryptocurrency because of the banking system in d country, if i may ask d banking system in ur country is it working since you people banned BTC and cryptocurrency from d country? D answer is no. I don't think, obiora have anything meaningful to tell ur business men in Nigeria, because many countries in d world are using dis cryptocurrency to eliminate inflation for deflation to take over in their land.

[Doan9269]

I do not know how true this is for now. But if true, is it not surprising that CBN is thinking that creating bitcoin and other cryptocurrencies is like printing fiat, naira to be specific.

I am still surprised to see this online. Please, if this is a fake news, let me know.

It may not be a fake news because sometimes you will discover that the government are taking some actions and decisions they couldn't explain to themselves as to why? We cant blame them sometimes because they have the power and it tussles alot especially when in the place of authorities,if they banned cryptocurrency we will still be engaged with bitcoin, what i expects from them is to allow the banks continue with the transaction of bitcoin and disabled any other cryptocurrencies to be performed by thier banks except for exchanges and at our own risk.

[CryptoHeadlineNews]

what i expects from them is to allow the banks continue with the transaction of bitcoin and disabled any other cryptocurrencies to be performed by thier banks except for exchanges and at our own risk.

That's a very brilliant suggestion you just made above because since Bitcoin is proven to be the only cryptocurrency with low volatility risk compared to altcoin, It will likely save a lot of persons who fall victim to most altcoin investment scams, while also acting as an alternative source of revenue to government from the little charges that will be charged by banks to execute Bitcoin transactions, far better than placing a ban which is still not stopping the usage of Bitcoin through the help of peer2peer exchanges.

If i may ask d banking system in ur country is it working since you people banned BTC and cryptocurrency from d country? D answer is no. I don't think, obiora have anything meaningful to tell ur business men in Nigeria,.

From the way you sound in this statement of yours and the emphasis placed on the usage of the word "ur", it gives me a clue you are not a Nigerian. So if you don't mind, I will be glad knowing which country you are from? Thanks

That is, base on the usage of "ur country" & "ur business men"

[Zanab247]

From the way you sound in this statement of yours and the emphasis placed on the usage of the word "ur", it gives me a clue you are not a Nigerian.
 So if you don't mind, I will be glad knowing which country you are from? Thanks

Am from Edo state Nigeria u can verify from d admin so that u will believe like Thomas in d holy bible.

That is, base on the usage of "ur country" & "ur business men"

Am referring our country to broken english as ur country and our business men as ur business men but if that is not correct in our broken english you can correct me Sir.

[Doan9269]

what i expects from them is to allow the banks continue with the transaction of bitcoin and disabled any other cryptocurrencies to be performed by thier banks except for exchanges and at our own risk.

That's a very brilliant suggestion you just made above because since Bitcoin is proven to be the only cryptocurrency with low volatility risk compared to altcoin, It will likely save a lot of persons who fall victim to most altcoin investment scams, while also acting as an alternative source of revenue to government from the little charges that will be charged by banks to execute Bitcoin transactions, far better than placing a ban which is still not stopping the usage of Bitcoin through the help of peer2peer exchanges.

I just wish to see likebtwo more prominent countries join in bitcoin adoption as a legal tender just to unveil others eyes to believe and adopt bitcoin as well, the fear the government have is the threat bitcoin could serve them because they were unable to make law or regulate it, then what has it profit them when they are not milking revenue from bitcoin because it's decentralized than for them to attack the network.

[SmartGold01]

Though I do read from the link as well, this section of the story clearly explained everything.

Fed up with the antics of the cryptocurrency operators, Obiora said: “We kicked them out of our banking system because the opacity of the system is still a threat to financial system stability”.

To me, this shows how myopic they are in terms of reasoning because I don't see anything to be threat to our country's financial instability, they could give other reason that are more explanatory than this.

[uchegod-21]

Apart from the government of Nigeria, government of other part of the world, especially the Western countries who even know better and are more civilized find it very difficult to control inflation. The only known means they have to curtail inflation is to print more money and printing more money will in the long run push the country on a very bigger inflation and recession.
That was exactly what played out, because the Nigerian government and the Central Bank wanted to print more money as it seems to be the only way to solve the inflation problem. Since what they know is only to print money, they equally thought that cryptocurrency is something you can print unlimited and maybe get rich overnight without any kind of regulation.

[Kelward]

From di discussion of dis topic show say we no even know di reason why di CBN ban cryptocurrency for naija. For what ever reason wey dem get, ban na ban, so as dem no tell us officially the reason for di ban, e go de expected say different people go de bring different theories as to why dem ban am. Me I de look ahead to when dem go comot di ban, Aldo as e be now e be like say hope de for dat area, because as I de hear say dem wan begin tax crypto  transactions. So hopefully we go also de do bitcoin exchanges for our banks.

[Frankolala]

The news being fake or not... I believe in every lie,one truth dey. I know say CBN ban crypto for their selfish interest and that selfish interest na just one man no be all of them wey dey CBN or under CBN put heads together come up with the ban idea. Imagine say because private sector start to adopt bitcoin,CBN come strike them bad belle,take ban bitcoin just to choke their business.

Naija when we dey on top due to privilege or mago mago,that person fill say nobody reach am again. No true talk say if CBN print more cash,say he go lead to hyperinflation, which go worry these private sectors in their business and them dey advice Emefiele because he get him own reason to print and steal. He come mess the economy by banning crypto and also go ahead to print more money wey keep our country with hardship now. I just thank God say bitcoin no get censorship and nothing our government fit do to stop crypto users.

[DaNNy001]

From di discussion of dis topic show say we no even know di reason why di CBN ban cryptocurrency for naija. For what ever reason wey dem get, ban na ban, so as dem no tell us officially the reason for di ban, e go de expected say different people go de bring different theories as to why dem ban am. Me I de look ahead to when dem go comot di ban, Aldo as e be now e be like say hope de for dat area, because as I de hear say dem wan begin tax crypto  transactions. So hopefully we go also de do bitcoin exchanges for our banks.

Oga me I dey think say this ban no go actually comot oo even with this present new administration because the core problem from reading this news be say these people no actually no watin be crypto currency and anything wey you no understand you no go wan like implemente am and this na actually the major problem for other country dem too not only Nigeria.

[Wiwo]

I do not know how true this is for now. But if true, is it not surprising that CBN is thinking that creating bitcoin and other cryptocurrencies is like printing fiat, naira to be specific.

Let overlook the legitimacy of the news wether or not is fake or not,  but let discuss the topics as regards CBN's reaction to cryptocurrency within the Nigeria economy and the financial system,  the truth of the matter is that,  the rise of cryptocurrency has weakened the straight of fiat currency and even the strongest can't currency is affected by this and the US dollar have suffered a lot of value lost as against bitcoin and the naira was worst hit since it own value against the dollar is already weakening and the inflation rate in Nigeria is already high.

What I think with the CBN stand as regards cryptocurrencies is that the CBN governor now suspended lacks the basic understanding of currency development, value and calculations,  and this can be seen in his policy initiatives,  first instead banning the bank from banks vs crypto transactions,  what he should have initiated is for a policy framework that seeks to protect the Nigeria investors and users of cryptocurrencies within Nigeria and also make for ways to get the tax,  I know this may be hard to achieve most especially with decentralized coins like bitcoin which is not possible to be regulated but the governor shouldn't have kicked against bitcoin advantages individual level and seeking for it ban only to be replaced with a failed projects call e-naira.