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Nigeria is one of the countries that spearheads the African economy. Therefore, the prospect of Cryptocurrency is quite bright. This can drive enthusiasts to study and analyze the status of Cryptocurrency in Nigeria. Therefore let’s get started with the discussion.
Nigeria And Cryptocurrency
Nigeria is among the African countries where people bank on virtual currencies. According to an estimation, around 22 million people in Nigeria use Cryptocurrency. This constitutes around 10.34% of the overall population. Therefore, there is a promise for it in the African economy.
If we observe things from a close view, we can understand that more than one-third of the population between eighteen and sixty use Cryptocurrency. In a population with 50% of young investors (aged below 30), the prospect of the currency must look bright.
Moreover, Cryptocurrency follows a decentralized structure and does not recognize any centralized monetary institutions. This is the reason investors are running towards Cryptocurrency investment.
Is Cryptocurrency Legal In Nigeria?
As already mentioned, Cryptocurrency has huge potential in Nigeria. But the question remains, is Cryptocurrency legal in Nigeria?
Central banks govern the economy of a country. However, the Central Bank of Nigeria and the financial regulators do not recognize Cryptocurrency, so the country does not officially adopt the currency on its soil.
The Central Bank of Nigeria, in a circular meant for different financial institutions, gave the opinion that Cryptocurrency, like the traditional currency, does not follow the structure of the national economy and banking. Moreover, the currency is anonymous and untraceable. Therefore there is a high chance it can be exploited for criminal activities like money laundering and Terror funding.
Regulation Of The Cryptocurrency
The central bank in Nigeria has linked virtual currencies with Anonymity, Cyber Attacks like the Denial of Services. Moreover, cyberspace’s anonymity from Cryptocurrency can be misused for unethical conduct.
The Nigerian economic regulators opine that Cryptocurrencies are built on the idea of decentralization. Therefore, the virtual currency developers have intentionally designed it so no central authority can regulate these traditional currencies.
What does the Nigerian Cyber Crime (Prohibition And Prevention) Act 2015 says?
The Nigerian Cybercrime prohibition and prevention act 2015 directs that all financial institutions and Fintech companies must verify customer identities. They must integrate and implement all the important documents with the know-your-customer (KYC) process and keep the related data safe for two years.
Not only this, the consumer protection framework of the parental institution directs that all the financial Institutions must take the steps necessary to preserve the customer’s important data. They must protect the data of their valued customers.
What Cryptocurrency Has In Store For Nigeria?
Nigeria is suffering from economic issues, though it is one of the biggest economies in the country. As a result, the currency, the naira, suffers from hyperinflation. On the other hand, Bitcoin, altcoin, and others have the benefit in the form of decentralization.
It charges the country’s youth to invest in Cryptocurrency rather than traditional currency. They are looking for financial freedom. If the business trades with Cryptocurrency, they can get anonymity and the necessary protection.
Moreover, Cryptocurrency can benefit Nigerians with job opportunities. The country has a low employment rate. Therefore, the youth in Nigeria can involve themselves in trades like NFT marketing, game development, and Cryptocurrency writing. This might be why Nigeria’s youth are drawing more towards Cryptocurrency.
Wrapping Up The Discussion
Nigeria is one of the promising economies of the African continent. This might be the reason they have quite an opportunity with Cryptocurrency. Furthermore, there is high unemployment in the country, which denotes there is demand in the market. One can say that Cryptocurrency has the promise to operate strongly in the country. But for this, the existing economic infrastructure needs to lift to allow Cryptocurrency to thrive parallelly to the traditional economy.
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