The cryptocurrency sector has been one of those industries
that have grown very rapidly in recent times and it has caused a bit often issues for the authorities as well because they couldn't adapt to the speed at which it grew and the necessary changes that have needed to be made as well as the new adoptions that were required to be made to be making the industry included within the regulations that they happened to exist and make the system work properly and that is something which is causing a lot of trouble for the authorities to manage as of now because we are witnessing and a lot of countries which are not able to decide on what they need to be doing with this new asset class.
Clarity about regulations in the field of cryptocurrency is something that is very much needed and it does not exist right now in most parts of the world which is why there are a lot of issues that are being caused in terms of both the businesses as well as the authorities managing those issues which are arising because of the non exist in regulatory Framework in their particular country which is why they are a forced to take a lot of such decisions they might not have taken or might not have even required to be taking those.
A lot of countries have not yet figured out that what is going to be the specific manner in which they need to approach the cryptocurrency sector which has been a cause of a lot of issues in many countries if it talks about issues then we need to be talking about the effect that it has on the local currencies of countries as well.
In that regard, Nigeria is a very suitable example to be discussed because the local currency of the country has been continuously declining and the government believes that they need to stop the flow of digital assets within the country to balance that which is something that they have decided as well because they have now blocked the access to many prominent exchanges that were operating within the country namely Binance, Kraken and Coinbase.
The consumers in Nigeria now have very limited access to these particular services that involve cryptocurrencies in the country and the government's view on cryptocurrencies has seen a reversal in recent times as they previously were looking at digital assets which are cryptocurrency is which is going to be a method to attract for investment and also going to be one of the reasons that can be supporting their already fragile economy but now things are looking a bit different as the decision that has taken recently of banning these for exchanges is going to be going against that particular mindset that they were previously going ahead with.
The fact that the government believes that digital assets like a cryptocurrency that involves Bitcoin, as well as Tether, are straight-up rivals to the traditional assets has been a reason why their currency has slid due to the digital dominance that these coins are making in the market right now. The country right now is looking to increase the amount of regulation in this particular sector but after this band that they are placed on foreign exchange it also seems unlikely to happen as well.
The Nigerian economy is very fragile at the moment and they are looking for ways with which they can strengthen that earlier they believed that cryptocurrency be one of those things that might attract foreign investments within their country which can be a reason that might be helping in standing the economy of the country but now they have a different opinion on the same which is also contrary to the fact that they were looking for more regulation that is going to be making the industry a lot more streamlined in the country and also providing opportunities to Crypto businesses to arrive in the nation and serve the consumers which already has a big userbase as well.
The central bank of the country is also not looking to be that pleased with the presence of foreign exchange as well as cryptocurrency as a whole because they recently have also accused Binance of hijacking the central bank's role as the currency setter with its exchange rates along with that they also added that cryptocurrency is one of those things that are needed to be completely banned in the country and it might be affecting their local currency for long if they do not take any action for that and the access to these exchanges must be stopped right away.
No one can say for sure that is cryptocurrency going to be much of a reason for whatever is happening with the Nigerian economy or the impact that it might have by completely banning it within the country to the economy is going to be something that might happen but at then it is going to be a decision that the government has taken and will be something that might also encourage a lot of other countries who are facing similar issues to take as well.
It will be very interesting to see how these things are going to look after a couple of months as these decisions are going to have a bit of I am pact on the Crypto market as well as the way the Nigerian local market used to be functioning and at the end the consumers are also going to be impacted as well, these things while combine will be something to look upon once these things settle down.
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