The Central Bank of Nigeria appears to have reversed its ban on cryptocurrencies in the country as it disclosed plans to set up a regulatory framework for its use.
Recall that CBN had banned cryptocurrency-related transactions in the country while claiming that digital currency was used for money laundering and terrorism.
However, in a report by the apex bank on ‘Nigeria payments system vision 2025′ seen by OduNews, CBN noted that it will bring up a regulatory policy framework for the implementation of cryptocurrencies in the country.
The bank added that “It would also continue its watching brief on Initial Coin Offerings as well as work with Security Exchange Commission to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution.”
According to Investopedia, Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument, providing an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin, which has made crypto investments less suitable for common transactions.
When the ban was announced by the apex bank, the Acting Director, Corporate Communications, CBN, Osita Nwanisobi, allayed fears by noting that such transactions would not have any negative impact on fintechs.
He said, “The use of cryptocurrencies in Nigeria is a direct contravention of existing law.
“It is also important to highlight that there is a critical difference between a central bank-issued digital currency and cryptocurrencies.
“As the names imply, while central banks can issue digital currencies, cryptocurrencies are issued by unknown and unregulated entities.
“The question that one may need to ask therefore is, why any entity would disguise its transactions if they were legal.”
