Nigeria reverses its decision, crypto transactions are allowed again

In 2021, the Central Bank of Nigeria (CBN) banned banks from facilitating cryptocurrency transactions. This week, the CBN lifted the restrictions.

Nigeria is back in full force

The CBN acknowledged that the growing demand and acceptance of cryptocurrencies does not justify maintaining restrictions. The bank has therefore drawn up new guidelines for banks and other financial institutions that want to facilitate cryptocurrency transactions.

“We are now ready for full deployment and the government-initiated blockchain policy, when fully implemented, will position Nigeria as a pioneer in the continent’s digital economic landscape.”

The guidelines are intended to establish minimum standards and requirements for establishing banking relationships and opening accounts for Virtual Asset Service Providers (VASPs) in Nigeria. They are also intended to ensure sound risk management practices in the banking sector with regard to the activities of recognized VASPs.

However, the guidelines emphasize that financial institutions are still prohibited from holding, trading or transacting in cryptocurrencies through their own accounts.

Brazil and El Salvador before Nigeria

According to Google Trends, Brazil has overtaken Nigeria when it comes to interest in Bitcoin. El Salvador remains at the top.

El Salvador’s continued dominance in Bitcoin interest can be attributed to the country and its president’s commitment to cryptocurrencies.

In Brazil, the country’s largest private bank, Itaú Unibanco, recently started offering crypto services. You start trading Bitcoin and Ethereum. This move followed a series of changes in Brazilian legislation.

Nigeria, on the other hand, has seen a shift in its cryptocurrency landscape, with a growing preference for stablecoins over Bitcoin. This preference is driven by the stability of stablecoins, as they are pegged to the widely accepted US dollar and provide protection against inflation and the devaluation of the Nigerian naira.

Source: BTC Direct

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