After the flittering news that circulated in Nigeria concerning cryptocurrency being banned in Nigeria for these 2 major reasons;money laundering(corruption) and terrorism. Sometimes ago, it is gathered that #78M worth of BTC was traded in Nigeria within 3 months. So when the news surfaced, on the 5th of February,2021 the Central Bank Of Nigeria placed an order to all commercial Banks to stop any transaction that is digital asset related. It didn't stop there, some Bank account numbers were blocked because it was run on cryptocurrency transaction.
Why did the Central Bank of Nigeria place ban on cryptocurrency?
Has I have mentioned above that, the 2 major reasons cryptocurrency was banned in Nigeria are because they claimed cryptocurrency which is a decentralized system that has no central authority controlling or regulating it, is being used as the avenue for money laundering by political looters or scammers, which is related to corrupt practice and for sponsoring terrorism. Because they believe that, citizens are moving the money they made through illegal means to the digital asset which seems not traceable because of the decentralization system and central authority controlling the digital Investment system just like the way the central bank of Nigeria are making rules and regulations for all other banking system in Nigeria.
Truthfully, since the advent of BVN in Nigeria,the issue of corruption practice and corruption have been reduced to some extent because people readjusted from depositing the money they stole through illegal into the banking system because they will be questioned how the money came about instead they the federal government authority thought that another means being used is people are diverting their asset purchase to the digital Investment.
Has the ban on the cryptocurrency by the central bank of Nigeria been able to reduce money laundering and terrorism in Nigeria?
If I must say,the ban on cryptocurrency by the FED has not really justify anything because people who involve in corrupt practice,money laundering and other illegal stuffs have find other means to use their illegal money or asset like Investment in real estate, opening and depositing money into foreign account and moreso, most of the who involve in corrupt practice tend to hoard this money. The truth behind cryptocurrency investment is that,it's not everybody that has cryptocurrency asset that purchased it through illegal money but where you have people that come with good intentions to invest with their money,the same thing you will see people that come with bad intention. So that assertion of banning cryptocurrency in Nigeria is a mere misplaced priority, waste of time and Investment.
