The Central Bank of Nigeria has said that it will make a set of rules for how cryptocurrencies can be used in the country.
In a report called “Nigeria Payments System Vision 2025,” said this.
Earlier, crypto-related transactions in the banking system were banned by the agency in charge of banking.
“The CBN would think about making a regulatory framework for the possible use of “Stablecoins,” the CBN said.
Economists who talked to The PUNCH said that it was a bad idea for the central bank to think about the stablecoin after the e-naira failed.
The bank also said, “It would keep an eye on Initial Coin Offerings and work with the Security Exchange Commission to come up with a regulatory framework in case an ICO-based investment solution were to be adopted.”
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Investopedia says that stablecoins are cryptocurrencies whose value is tied to that of another currency, commodity, or financial instrument. They offer an alternative to the high volatility of Bitcoin and other popular cryptocurrencies, which makes them less useful for everyday transactions.
Remember that the Central Bank of Nigeria (CBN) had banned cryptocurrency transactions in the country, saying that digital currency was used for money laundering and terrorism.
In a statement, Osita Nwanisobi, who is the acting director of corporate communications at the CBN, said that the ban on these kinds of transactions would not hurt fintechs in any way.
He said, “Using cryptocurrencies in Nigeria is a direct violation of the law that is already in place.
“It is also important to point out that a central bank-issued digital currency is very different from cryptocurrencies.
“As the names suggest, central banks can issue digital currencies, but cryptocurrencies are issued by unknown and unregulated entities.
“One may want to ask, then, why an organization would hide its transactions if they were legal.”
Rotimi Fakayejo, an analyst of the economy and capital markets, said on Wednesday that if the policy were put into place, it wouldn’t have a big effect on the economy because it came at the wrong time.
He said, “We tried e-naira, but it doesn’t work. I don’t think CBN is making the right decisions. We all know that rules in this country can be pretty lax.
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“The naira is not stable, and there isn’t enough foreign exchange. I don’t see why they would choose to do something like that.”
Wole Adeyeye, a capital market, and investment analyst said that these policies couldn’t be put into place until the right rules were in place.