So it's alleged that the central bank of Nigeria has lifted the ban on crypto transactions through the commercial banks. I didn't see this, probably because I've been away, trying to fix my health and life, and most surprisingly I didn't see it trending on Twitter. If it didn't trend on Twitter, then? But of course, I checked reputable websites and I found out that it was indeed true.
I guess it didn't trend because it wasn't going to make a difference, people already found ways to trade without "needing" the commercial banks as a middleman, and the government probably knows this.
The Nigerian SEC is not sophisticated enough, and this is because of their limited knowledge of crypto, and since the ban hasn't really affected crypto transactions, they might as well lift it, so that the commercial bank will continue to enjoy the revenue that comes from trading.
To be honest, I don't know who pushed for this ban to be lifted, however since the previous regime is no longer in place, I guess the new regime might as well want to try something different, and if this ban is truly going to be lifted and transactions will be functional, then it'll the only good thing this regime will ever do.
Of course, the commercial banks were restricted from being a sort of exchange, they were only allowed to trade, and not hold, I guess this is because they don't want the local bank to be some sort of cartel or pro-crypto and ignore the growth of the naira, but since crypto isn't really affecting the plummeting of naira, maybe the government wants to give crypto a shot to see the immediate impact.
To be honest, we might still see stronger regulations, especially because making crypto trading official will open the floodgates, some people are billionaires in crypto, and these people might begin to run their stuff through the commercial banks again. However, if this unban is truly going to take shape, then the government must have understood that crypto isn't the problem of Nigeria, secondly, people already found ways to trade anyways, and three, they're doing so to allow the commercial banks to continue enjoying the magic money that comes with moving crypto.
So what does this mean?
Nothing much Crypto will only continue to gain ground in Nigeria, just like it's still doing. There will be more official crypto adverts on national television and not just on cable TV. More celebrities will pop up to join the trend. More crypto academies will be opened, and owning or having crypto apps will no longer be considered to be a crime. Although people have ways of hiding their apps, I just feel like this move is mainly to allow the commercial banks to enjoy the magic Money of moving the coins, and there really won't be many changes to how people buy and sell.
Although, the timing is primed.
why? It's close to a period where the bear market is ended, which means more unintentional money will be thrown into all forms and types of assets, and more noobs will begin to invest foolishly into foolish projects as well. Will this affect anything in the grand scheme of things? Not really, why? The Nigerian populace is not big enough to impact on price, but it's all part of the process. Maybe other stubborn African countries like South Africa might take a cue as well.
That said, I like to see apps that shut down due to the Nigerian Central Banks ban in 2021 pop up again, in conjunction with the central banks, who knows, more Fintech apps might begin diverse collaboration with the local banks.
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