Reports from various sources in Nigeria suggest that the government is considering a ban on all cryptocurrency-related activities in the country. Despite already prohibiting many crypto-related activities, such as deposits from banks into exchanges, the government is now aiming to ban different cryptocurrency exchanges. This move appears to be driven by a lack of understanding of the potential benefits of crypto technology and its ability to improve the current state of the economy. Rather than leveraging this technology to improve the economy, the government has opted to simply ban it.
It's ironic how Nigeria is focusing on banning cryptocurrency instead of addressing the root cause of its economic problem which is the lack of USD liquidity. Even if cryptocurrency is banned, people will still find ways to trade it. Other countries have banned it too, but their citizens still manage to trade it. But the reality is, that restricting the conversion of money into USD won't solve the major problem at hand. The lack of USD liquidity is the root cause of Nigeria's economic crisis.
Former President Buhari depleted Nigeria's reserve during his tenure. Nigeria had $28 billion in reserve before Buhari became the President, but by the time he left, the reserve was reduced to $0.00. Moreover, during this period, the importation rate had increased, making it difficult for the government to control the rise of Naira. While some believe that banning cryptocurrency exchanges won't solve the problem, the Nigerian government is reportedly negotiating with cryptocurrency exchanges in the country. However, if any cryptocurrency exchange does not comply with the government's terms, it might face a ban.
Dance or leave
The Central Bank of Nigeria had plans to launch a blockchain-based token called CNGN to support the Naira on the Binance chain, but with the recent depreciation of the currency, the government is taking a new approach. They are looking to curb the rate at which citizens are converting Naira to USD, as people are feeling insecure about the value of Naira. The government is searching for ways to benefit from this situation and prevent people from converting their money into USD.
I think this plan has potential, but how many times should we comply with the Nigerian government's demands? The Nigerian government is notorious for its corruption, and any exchange that follows its instructions must also be corrupt. Binance and Bybit are the only exchanges I can imagine agreeing to the Nigerian government's terms because they too are corrupt. Even if they collaborate with the government, it won't fix the Naira's predicament.
How can we get dollars
Our primary focus should be on completing the refinery to acquire dollars. Additionally, we must take action against the corrupt government officials who have embezzled billions of dollars over the years. There are several ways to restore the economy, but banning cryptocurrency is not the solution. Many countries allow cryptocurrency, and their economy has not been affected. Instead of prohibiting cryptocurrency, we should harness its technology to improve our currency and propel our economy forward.
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