Nigeria unbans cryptocurrency

[Eldestyoung]

I need not to pause to say how delightful I'm to hear that  the Central Bank of Nigeria has changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto.

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

[Charles-Tim]

You need to edit the title. Nigeria did not ban bitcoin and other cryptocurrencies. Just as what is in your content, it was the central bank of Nigeria that ban cryptocurrencies and not Nigerian government.

Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.

I am still using P2P and I prefer it now. I do not think I will ever use those credit cards anymore. P2P is not bad as long as you know how to avoid scammers.

[zasad@]

https://www.forbes.com/sites/digital-assets/2023/12/27/nigerian-banks-set-to-launch-compliant-naira-stablecoin-in-2024/
"Following the Central Bank of Nigeria's circular, a consortium of Nigerian banks, fintechs, and blockchain companies are developing a Naira stablecoin, cNGN, with sources close to the project stating a planned launch in 2024.

Naira Stablecoins
The concept of a Naira stablecoin has been floating around for several years, with previous attempts in the past. The most recent was NGNT by the Token Mint consortium in 2019, consisting of major Nigerian crypto exchanges and African communities, including Helicarrier and Busha. NGNT is pegged 1:1 with the Naira and is on the Binance Smart Chain and the Ethereum Network, as BEP-20 and ERC-20 tokens, respectively."

[Upgrade00]

Naira Stablecoins
The concept of a Naira stablecoin has been floating around for several years, with previous attempts in the past.

A naira stable coin model in eNaira has already been launched easiler this year.

It is still in active now but did not quite take on asbit was expected to when it was launched.

[Davidvictorson]

Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.

I think that once you start using P2P there is almost no going back. At first it was hard but then after a couple of trials I got it right. One of the things that I like about the P2P medium is that the exchange platforms which has this feature has made it almost impossible for customers to get scammed by bad guys. There is a lot of warnings and reminders to sellers to give them a heads up. I have had a couple of encounters on remitano platforms and monies was refunded. In terms of P2P with friends and family, I do not do this mostly for security reasons. It is far better to trade with someone you do not know on a regularized platform than local trading.

[avikz]

I need not to pause to say how delightful I'm to hear that  the Central Bank of Nigeria has changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto.

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

Good for Nigeria! I hope finally the central bank have understood the power of crypto and also understood that they cannot ban cryptos through a law or a circular. Rather it will force multiple people to hide their crypto transactions and underpay taxes. So it's a two edged sword for both people and government.

Hopefully, other African countries will realise the benefits soon and follow Nigeria here.

[Fiatless]

https://www.forbes.com/sites/digital-assets/2023/12/27/nigerian-banks-set-to-launch-compliant-naira-stablecoin-in-2024/
"Following the Central Bank of Nigeria's circular, a consortium of Nigerian banks, fintechs, and blockchain companies are developing a Naira stablecoin, cNGN, with sources close to the project stating a planned launch in 2024.

Naira Stablecoins
The concept of a Naira stablecoin has been floating around for several years, with previous attempts in the past. The most recent was NGNT by the Token Mint consortium in 2019, consisting of major Nigerian crypto exchanges and African communities, including Helicarrier and Busha. NGNT is pegged 1:1 with the Naira and is on the Binance Smart Chain and the Ethereum Network, as BEP-20 and ERC-20 tokens, respectively."

The past administration in Nigeria intended to shift citizens' attention from cryptocurrencies to the Nigerian stablecoin called the eNaira. But this lofty dream didn't materialize because people already knew that the eNaira was nothing but an online Fiat. The Nigerian currency was losing value every day and the people were using Bitcoin and others to shield their Investments from inflation and decline in the value of the Naira.

I think the government has realized that there is nothing it can do to reduce the adoption of cryptocurrency, so they have no other option than to remove the restrictions placed on commercial banks. With the removal of these restrictions, I expect the Nigerian crypto industry to experience development in all spheres.

[sokani]

The past administration in Nigeria intended to shift citizens' attention from cryptocurrencies to the Nigerian stablecoin called the eNaira. But this lofty dream didn't materialize because people already knew that the eNaira was nothing but an online Fiat. The Nigerian currency was losing value every day and the people were using Bitcoin and others to shield their Investments from inflation and decline in the value of the Naira.

The eNaira is a failed currency and for CBN to claim that there's been over 2 million downloads of the eNaira wallets on Playstore since launching is even ludicrous. According to playstore, there's been only 10k+ downloads of the app and I'm yet to come across a business that's accepting it or an individual that has interacted with it.

I think the government has realized that there is nothing it can do to reduce the adoption of cryptocurrency, so they have no other option than to remove the restrictions placed on commercial banks. With the removal of these restrictions, I expect the Nigerian crypto industry to experience development in all spheres.

When PBAT was the governor of Lagos state, he made a lot of money collecting taxes from Lagos toll gates, now that he's president, I believe he'd want to do same with exchanges. Though, the lifting of the ban is a good news, but let's embrace ourselves for more regulatory scrutinies and taxes.

 

[YOSHIE]

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

Yes, that's good news for crypto users in Nigeria, I have seen crypto users especially Bitcoin very enthusiastic in understanding how crypto works in general, whatever the laws that apply in Nigeria, For now I still support the actions of the Central Bank of Nigeria, it is progress for crypto users in general in Nigeria.

In my view, whatever is currently happening in Nigeria, either illegally or legally, it cannot be separated from its role. The youth population in Nigeria is enthusiastic about understanding technology and adopting digital currency/Bitcoin as a whole, I believe Africa can be the best country in the future in terms of crypto, trade, investment, law and so on.

[Husires]

Not banning Bitcoin does not mean that you can access Bitcoin easily. Unless there are local services that provide P2P or reliable offices that buy and sell cryptocurrencies, the decision to ban or not will not change anything.
Will taxes be imposed on transactions, or is the tax system in Nigeria still limited to indirect taxes and does not include income tax and personal taxes?

[zasad@]

Breaking news
https://cointelegraph.com/news/nigeria-cbn-greenlights-stablecoin-launch-february
"Nigeria’s central bank greenlights cNGN stablecoin to launch in February
The Africa Stablecoin Consortium said the cNGN stablecoin complies with the regulatory requirements and standards of the Central Bank of Nigeria and the Nigerian SEC.
The Central Bank of Nigeria (CBN) has approved the Africa Stablecoin Consortium (ASC) to pilot the cNGN stablecoin in its regulatory sandbox. The new stablecoin is to be launched on Feb. 27, 2024. "

[Fiatless]

Breaking news
https://cointelegraph.com/news/nigeria-cbn-greenlights-stablecoin-launch-february
"Nigeria’s central bank greenlights cNGN stablecoin to launch in February
The Africa Stablecoin Consortium said the cNGN stablecoin complies with the regulatory requirements and standards of the Central Bank of Nigeria and the Nigerian SEC.
The Central Bank of Nigeria (CBN) has approved the Africa Stablecoin Consortium (ASC) to pilot the cNGN stablecoin in its regulatory sandbox. The new stablecoin is to be launched on Feb. 27, 2024. "

Just like the eNaira, the cNGN stablecoin will not get the right attention from the public. This is because this coin will not solve the financial issues Nigerians face in the banking sector. Nigerians are embracing cryptocurrency not because they like the blockchain but because they want a currency that will serve as a hedge against inflation and also make them invade some unfriendly policies from the central bank. Using the cNGN stablecoin is like using the online banking service of a commercial bank which is marred by delays and other transaction issues. Since it is still the central bank that will supervise the operations of the Africa Stablecoin Consortium (ASC), Nigerians will still have to face the same draconian policies like withdrawal and deposit limits as well as KYCs. However, this project is still in its pilot stage, but I know that they will not get the best result just like the eNaira.     

[Pi-network314159]

I need not to pause to say how delightful I'm to hear that  the Central Bank of Nigeria has changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto.

That was not an illicit ban but a temporary ban and also was not done by government but by the CBN Governor.

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

It was no where recorded that P2P transaction was prohibited or being affected by the temporary ban. What happened is that  any transaction you make in bank and include cryptocurrency as discribtion will amount to blocking you bank account. Or withdrawal of crypto directly to your bank card will atract them to look into your information. But the P2P you made mention of was used in binance to transac with people around your visinity. binance was the reason behind why the temporary ban did not affect people do to P2P. So it did not affect P2P.

[Gozie51]

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

It was never difficult buying or selling bitcoin through the P2P medium only if you keep to the rules provided by the exchange. Apart from exchange, there are other regulated platforms like telegram or WhatsApp that organized it in such away that they had escrow who received money as middle person for the transaction. So it wasn't really a difficult thing selling or buying bitcoin then and now nothing has changed if not that the government have realised they were only setting themselves and youths backwards for self-centredness and political gains.

[zasad@]

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

It was never difficult buying or selling bitcoin through the P2P medium only if you keep to the rules provided by the exchange. Apart from exchange, there are other regulated platforms like telegram or WhatsApp that organized it in such away that they had escrow who received money as middle person for the transaction. So it wasn't really a difficult thing selling or buying bitcoin then and now nothing has changed if not that the government have realised they were only setting themselves and youths backwards for self-centredness and political gains.

I always avoid all P2P exchanges on centralized exchanges, because then the exchange will transmit this information to your country's tax office and it will be used against you. Even if you have someone else’s given KYC, then the bank cards there are yours. Of course, you can pay another person to give you his bank card, but these are additional risks.

[Fiatless]

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

It was never difficult buying or selling bitcoin through the P2P medium only if you keep to the rules provided by the exchange. Apart from exchange, there are other regulated platforms like telegram or WhatsApp that organized it in such away that they had escrow who received money as middle person for the transaction. So it wasn't really a difficult thing selling or buying bitcoin then and now nothing has changed if not the government have realised they were only setting themselves and youths backwards for self-centredness and political gains.

Indeed it was not difficult to exchange Bitcoin even with the restrictions placed on banks but there were still some problems. Before the restrictions were lifted the government promoted campaigns to showcase the crypto space as fraudulent and very risky. People were deceived into believing that if they put their money in crypto there was a high chance that they might be scammed. The public including law enforcement agencies began to see people that use cryptocurrencies as criminals. It was so bad that the police might arrest and interrogate you immediately they saw a crypto wallet in your phone. There was a case where an exchange operator who used a social media platform to advertise his services was tracked by the police and arrested.

The point I am making is that due to the government's negative stance on cryptocurrencies, it was now seen as illegal when it was not prohibited by the law. I share the same position with @Eldestyoung that there is a need to celebrate the lifting of the restrictions. If I am not wrong, many crypto users and service providers were happy about the change because it would open more doors of opportunity in the Nigerian crypto industry.

[zasad@]

It gives me joy to know that we can now transact in crypto without difficulty. Before now in Nigeria transaction in crypto has always been difficult and stressful especially using P2P.
This calls for a celebration for all crypto lovers in Nigeria.

It was never difficult buying or selling bitcoin through the P2P medium only if you keep to the rules provided by the exchange. Apart from exchange, there are other regulated platforms like telegram or WhatsApp that organized it in such away that they had escrow who received money as middle person for the transaction. So it wasn't really a difficult thing selling or buying bitcoin then and now nothing has changed if not the government have realised they were only setting themselves and youths backwards for self-centredness and political gains.

Indeed it was not difficult to exchange Bitcoin even with the restrictions placed on banks but there were still some problems. Before the restrictions were lifted the government promoted campaigns to showcase the crypto space as fraudulent and very risky. People were deceived into believing that if they put their money in crypto there was a high chance that they might be scammed. The public including law enforcement agencies began to see people that use cryptocurrencies as criminals. It was so bad that the police might arrest and interrogate you immediately they saw a crypto wallet in your phone. There was a case where an exchange operator who used a social media platform to advertise his services was tracked by the police and arrested.

The point I am making is that due to the government's negative stance on cryptocurrencies, it was now seen as illegal when it was not prohibited by the law. I share the same position with @Eldestyoung that there is a need to celebrate the lifting of the restrictions. If I am not wrong, many crypto users and service providers were happy about the change because it would open more doors of opportunity in the Nigerian crypto industry.

When I wrote information about Nigeria, I remember that USDT TRC 20 is also very popular there, due to inexpensive commissions.
For many residents, paying fees of several dollars or more is very expensive and they will not be able to use Bitcoin. In Nigeria there are also very small salaries, 50-200 dollars a month. The problem of commissions is very relevant there.

[yhiaali3]

When I wrote information about Nigeria, I remember that USDT TRC 20 is also very popular there, due to inexpensive commissions.
For many residents, paying fees of several dollars or more is very expensive and they will not be able to use Bitcoin. In Nigeria there are also very small salaries, 50-200 dollars a month. The problem of commissions is very relevant there.

The crypto situation in Nigeria is very similar to the situation here in my country, I mean before the crypto ban was unbanned in Nigeria.

Most people in my country prefer Bitcoin and hold it in the long term, but for daily transfers that are made exclusively through an intermediary, the preferred coin is USDT TRC 20 because it is somewhat stable relative to the dollar, its fees are low, and its transactions are fast.

Therefore, when I always want to exchange Bitcoin into a local currency, I convert it to USDT TRC 20 first and then send it to the broker. This process costs a fee of only about $1 and only takes about 5-10 minutes, while transferring via Bitcoin costs more fees and a much longer time.

[zasad@]

When I wrote information about Nigeria, I remember that USDT TRC 20 is also very popular there, due to inexpensive commissions.
For many residents, paying fees of several dollars or more is very expensive and they will not be able to use Bitcoin. In Nigeria there are also very small salaries, 50-200 dollars a month. The problem of commissions is very relevant there.

The crypto situation in Nigeria is very similar to the situation here in my country, I mean before the crypto ban was unbanned in Nigeria.

Most people in my country prefer Bitcoin and hold it in the long term, but for daily transfers that are made exclusively through an intermediary, the preferred coin is USDT TRC 20 because it is somewhat stable relative to the dollar, its fees are low, and its transactions are fast.

Therefore, when I always want to exchange Bitcoin into a local currency, I convert it to USDT TRC 20 first and then send it to the broker. This process costs a fee of only about $1 and only takes about 5-10 minutes, while transferring via Bitcoin costs more fees and a much longer time.

But if you want to exchange Bitcoins for USDT TRC 20, then you will pay a commission on the Bitcoin network, which can be very high depending on demand.
I don't understand your benefit in this exchange when it's easier to send bitcoins and receive cash.

[pakhitheboss]

When I wrote information about Nigeria, I remember that USDT TRC 20 is also very popular there, due to inexpensive commissions.
For many residents, paying fees of several dollars or more is very expensive and they will not be able to use Bitcoin. In Nigeria there are also very small salaries, 50-200 dollars a month. The problem of commissions is very relevant there.

The crypto situation in Nigeria is very similar to the situation here in my country, I mean before the crypto ban was unbanned in Nigeria.

Most people in my country prefer Bitcoin and hold it in the long term, but for daily transfers that are made exclusively through an intermediary, the preferred coin is USDT TRC 20 because it is somewhat stable relative to the dollar, its fees are low, and its transactions are fast.

Therefore, when I always want to exchange Bitcoin into a local currency, I convert it to USDT TRC 20 first and then send it to the broker. This process costs a fee of only about $1 and only takes about 5-10 minutes, while transferring via Bitcoin costs more fees and a much longer time.

But if you want to exchange Bitcoins for USDT TRC 20, then you will pay a commission on the Bitcoin network, which can be very high depending on demand.
I don't understand your benefit in this exchange when it's easier to send bitcoins and receive cash.

I am quoting all three of you as I found a way to pay less than $1 as a transaction fee using USDT. In my country which is India, we have to pay a 30 percent tax every year on our profits and then a 1% tax is deducted on source for every cryptocurrency transaction, such as for trading crypto to crypto and crypto to fiat. The 1 percent tax deducted at source only applies to local exchanges and not to international exchanges. To avoid it all crypto communities shifted to international exchanges and whenever they wanted to convert their crypto to fiat they used local exchanges.

To avoid the 30 percent tax the preferred deposit crypto was USDT as it is stablecoin and does not show the government that it is generating any profit. At first, a lot of us were using USDT on the Tron blockchain but the fee was $1. With the introduction of USDT on the Binance smart chain the fee was significantly reduced. I am not from your country but if in your country brokes accept USDT on the Binance smart chain then it would reduce the fee that you guys are paying for every transaction now.