Can local banks buy Bitcoin without the permission of the CBN or government?

[Silentcursor]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

[Majestic-milf]

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

No. They no get the freedom to do so because inasmuch as CBN don lift the ban small, conditions still dey but them go fit operate accounts for those individuals wey be virtual assets providers.
As e be the government still dey look these digital currencies with one kind eye and even though them don relax their hold, e no still give these banks the mind to do that . more details

[cabron]

Can't a banker from Nigeria just buy BTC somewhere like secretly?

I know it might be this risky but just how we like it here buying BTC from someone here in the forum and a new generated wallet for your storage would be nice. It would be a big step for a banker to do this for himself. Kinda like a head of time because after all the world will  adopt BTC with or without Nigeria.

[Joy- maker]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

even as the regulation don change small they are still not allowed to hold bitcoin or any crypto asset as a reserve, because under the new guidelines, giving by the NIGERIA'S SECURITIES AND EXCHANGE COMMISSION still say banks and financial institutions are still prohibited from holding, trading or transacting crypto assets on their accounts, because Nigeria government never concur to this crypto of thing they still dey look an one kind eye, so if they hold bitcoin or any crypto asset as a reserve them don break the law, and they we face the law and serve the consequences.

[Charles-Tim]

The CBN state this when the ban was listed lifted:

"From the commencement of these Regulations, Fl shall not open or permit the operation of any account by any person or entity to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the requirement of these Guidelines," the CBN said
But banks were still barred from trading, holding or transacting cryptocurrencies, the CBN said.

Which means the banks are not allowed to do crypto businesses.

[CryptoHeadlineNews]

Just as stated in the memo Charles-tim provided above  which was issued by Central Bank of Nigeria when a ban was made on cryptocurrencies 4yrs ago,  about banks been barred from trading, holding or transacting cryptocurrencies, but it doesn't mean as a banker you can't, but inasmuch as you operate while using the normal procedure by not including any terms that related with crypto in transaction descriptions. Because just as SEC have just recently recognized Bitcoin and other digital currencies as legal tenders, let's look forward to see if they will be able to enable swift transaction via the use of both VISA and MasterCard for both buying and selling of Bitcoin which existed before this ban was made.

[Cryptohygenic]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company.

I no sure say dem don implement am rather na only speculations as proposal na em dem don do so far for the recent time.
Na Nigeria we dey and I fear if our banks go gree buy bitcoin and holds for trade bcos of em volatility rather e go only good for reserve as long time investment to do away with loose.
Wetin me just see there na say the government go legalize am and then e go attract exchange companies to lias with we government for partnerships and then we government people go implement their own regulations and invoke taxations on the companies and that go lead to increase of transactions way be say na we go suffer am.

[Marvelockg]

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

There is a difference between individuals or banking staff owning Bitcoin and bank as a government regulated entity doing same. The restriction applies to banks and only hinders banks as a government-regulated entity from owning crypto. As a banker who is a Bitcoin enthusiast, nothing stops you from creating an account and buying Bitcoin via P2P. i dont see anything that is illegal about that. however, considering that we are in a country where the laws can be easily twisted to achieve selfish ultirior motive, it will be better as a banker to keep things low if you are holding bitcoin so you dont get accused of stealing from the bank just to invest in bitcoin.

[Doan9269]

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

Before you can talk of anything, then we first have to visit on the kind of government policy they have in that country, what type of bank is it and how they were able to incorporate themselves with government directives and regulations over cryptocurrency, some banks may not even consider the use of other investment assets because they mainly focuses on their fiat financial advisory they have ben used to by dealing with the people, while some follow strict directives form government and regulatory authorities over their decision making process, we still have some who could not afford to share anything they have or do with the government and go private in doing them.

[AmaGold70]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

I wan know since things done change small for the regulation individual banks and bankers can they now hold Bitcoin as a reserve?

In a country that has fully accepted crypto currency it is possible and in a country that hasn't accepted crypto currency it is impossible, now in naija, I don't think it's possible for a bank as an organization or an entity that is under the government to buy Bitcoin without the permission of the government or CBN. Government never accept am and financial institutions in the country and highly prohibited from holding Bitcoin as a reserve and they would be breaking the law if they do it, but bankers can do it individually without the notice of anyone.

[Salahmu]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

My question is that what money will the bank use to buy Bitcoin?, is the customers money or from the profit they are making as a bank?, actually they cannot buy Bitcoin using other people's money, however it doesn't even necessarily have to be a bank to invest on Bitcoin individually they can do that, because our banking system is barely maintaining a consistency on their traditional banking let alone starting to venture into Bitcoin. However whether Bank or other companies there is nothing like investing underground with the organizational funds, they will definitely track it.

[Mehmet69]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

My question is that what money will the bank use to buy Bitcoin?, is the customers money or from the profit they are making as a bank?, actually they cannot buy Bitcoin using other people's money, however it doesn't even necessarily have to be a bank to invest on Bitcoin individually they can do that, because our banking system is barely maintaining a consistency on their traditional banking let alone starting to venture into Bitcoin. However whether Bank or other companies there is nothing like investing underground with the organizational funds, they will definitely track it.

I agree with you. We all know that banks do not have any money of their own. They use the money of common people to earn profit. So does this mean that they will invest our money in their own name? If so, will we get any share of the profit? Or will only bank officials and the government enjoy the entire profit?

If so, then during the bear market, there will be a special pressure on banks. We may not get the benefits as before.

[Lembo69]

If Nigerian banks really start investing in Bitcoin, then the banks will have to face many complications. For example, they will invest with customer money, if the market is in a recession, then the customer's money will be lost, as a result, when they want to withdraw money, the bank will not be able to give it on time, and this will also put pressure on the country's fiscal policy. As a result, inflation will occur. But yes, when they make a profit, they will also curb the country's inflation. If you look closely, you can see that the losses will be greater.

[Callido]

My contri people i hail everybodi.

Recently the Nigerian government formally recognizes cryptocurrency as securities in new SEC Act 2025 (ISA 2025). Does this mean banks are now allowed to buy Bitcoin and hold because as a banker we were on strict rules not to hold Bitcoin as an asset by the company. Unless say na underground something but e no make sense for the system because e they fully regulated, every transaction they transparent and remember say CBN done already place some restrictions around anything way bee crypto related for the countri.

My question is that what money will the bank use to buy Bitcoin?, is the customers money or from the profit they are making as a bank?, actually they cannot buy Bitcoin using other people's money, however it doesn't even necessarily have to be a bank to invest on Bitcoin individually they can do that, because our banking system is barely maintaining a consistency on their traditional banking let alone starting to venture into Bitcoin. However whether Bank or other companies there is nothing like investing underground with the organizational funds, they will definitely track it.

Charles-Tim already answered the question from OP that banks are not permitted to partake in any Bitcoin or Crypto transactions, which means they can't on their own start up a Bitcoin investment.

If by any chance they want to differ that regulation by the CBN, it will come from reserves, if that is not enough they can use individual funds, mind you that whatever money we deposit inside the bank, it's just a figure displayed there, the real money has left your balance, it will be easier to rotate the funds and still keep up their investment for several years without getting noticed.

[Agbamoni]

My question is that what money will the bank use to buy Bitcoin?, is the customers money or from the profit they are making as a bank?, actually they cannot buy Bitcoin using other people's money, however it doesn't even necessarily have to be a bank to invest on Bitcoin individually they can do that, because our banking system is barely maintaining a consistency on their traditional banking let alone starting to venture into Bitcoin. However whether Bank or other companies there is nothing like investing underground with the organizational funds, they will definitely track it.

Literally the money in the bank belongs to the customers but technically it belongs to the bank because there are millions to billions of naira in the bank account of customers who don't use the money at all times. If you don't know, the banks are into several type of investment especially in the stock market. They buy lots of stack even their bank stock.
There are so many ways they invest customers money and gain profit from it. Bitcoin is not exempted if they are giving the leverage to start investing in Bitcoin. The only reasons local banks have not started buying bitcoin is because they are not permitted to do so yet.

[Gozie51]

At the moment I no sure if banks have been designated to hodl cryptocurrency or sell but individuals who are working with the bank can on their own invest inside crypto as a person just as we too dey run am. The process may be on but me I still think the system never ready for crypto. They are running cashless and digital services but I don't think they have been allowed to trade, sell or hodl cryptocurrency in practice.

[SatoPrincess]

I’m always sceptical when it comes to Nigerian government policies and laws about Bitcoin. Even if the government comes out to say bitcoin is now a legal tender, I would take it with a pinch of salt because the same government can wake up the next day and start persecuting everyone who made transactions with Bitcoin. It’s quite unfortunate that we are living in a society where what is legal today can become illegal when you’re on the wrong side of the government.

[Juicyhome]

I’m always sceptical when it comes to Nigerian government policies and laws about Bitcoin. Even if the government comes out to say bitcoin is now a legal tender, I would take it with a pinch of salt because the same government can wake up the next day and start persecuting everyone who made transactions with Bitcoin. It’s quite unfortunate that we are living in a society where what is legal today can become illegal when you’re on the wrong side of the government.

Its because the leaders have no respect for rule of law, they are only using state power to rule, that is the unfortunate thing in this country, even when they make laws they don't obey it, the laws in this country' is for the poor and not for the rich, its a sorry state we are, all the economy policies none is active because no body respect them, we are all law breakers in this country, so need take  their law serious, just do what is right for you, because  this government have no sincerity and integrity there NO is not No tomorrow,

[sokani]

Can't a banker from Nigeria just buy BTC somewhere like secretly?

I know it might be this risky but just how we like it here buying BTC from someone here in the forum and a new generated wallet for your storage would be nice. It would be a big step for a banker to do this for himself. Kinda like a head of time because after all the world will  adopt BTC with or without Nigeria.

Yes they can. The fact that the central bank of nigeria forbids banks from buying or carrying out crypto related transactions does not mean bankers cannot buy or hodl Bitcoin. Those who know the potentials Bitcoin has will not allow the opportunity of buying it cheap slip through their fingers. So there are bankers that are into crypto but they do it in secrecy just as every other person from different works of life.

[Perfectbaby]

Banks can't on their holding Bitcoin as reserved funds because it's not announced by the president as I know it's the president who should give orders about anything reserved funds or it should work in lines with the CBN for them to make it officially or formally otherwise no bank or banks as an entity should on their own uses Bitcoin as a reserved funds without them being officially implemented, and still there are still restrictions placed on Bitcoin transaction so we can't assumed that individual banks can go on their own making Bitcoin or any cryptocurrency assets as a reserved funds.