Cooperative Crypto Players Poised to Lead Following Nigeria's Ban Lift on Digital Assets
Summary:
Nigerian cryptocurrency players who sustained cooperative relations with the Central Bank of Nigeria (CBN) before it lifted the digital assets ban for banks and financial bodies are likely to be industry forerunners, financial expert Olumide Adesina predicts. The committed interaction of these entities with regulators during the ban period has resulted in the central bank reconsidering its stance on digital securities. Adesina sees potential impact on the P2P market from a new stablecoin to be issued by a collaboration of banks and fintech companies, despite uncertainties in cryptocurrency exchange rates against the P2P market.
Cryptocurrency stakeholders who maintained cooperative relations with the Central Bank of Nigeria (CBN) prior to the December 23 lifting of the ban on digital assets for banks and financial bodies are expected to be future industry front-runners, states Nigerian financial expert Olumide Adesina. Speaking with Cointelegraph, Adesina emphasized that entities who constructively interacted with CBN and other regulatory bodies during the prohibition period rather than voicing complaints will be the real victors and potential early guardians of this sector.
Those proactive cryptocurrency players in Nigeria, Adesina commented, who built connections with the authorities have clearly mastered the art of persuasion and their efforts have prompted the central bank to modify its original stance. He sees the recent CBN circular announcing the lifting of the ban as a positive development, predicting that by focusing again on financial stability the central bank will allow digital securities that have been approved by local regulators to enter Nigeria's financial landscape.
Responding to queries on how the lifting of the ban might affect Nigerian cryptocurrency exchanges and peer-to-peer (P2P) commerce, Adesina pointed out that, despite a recent altcoin surge, trading volume in the NGN/USDT pair, a widely-used stablecoin, has been sluggish as holders reassess their strategies. Nonetheless, Adesina expects that a new stablecoin to be launched by banking partnerships and domestic fintech companies will have a significant impact on the P2P market and further extend the country's financial system.
During the 2021 enforceable prohibition, Nigeria became the world's largest P2P market. However, P2P transactions incurred higher cost than standard forex rates. Adesina cautioned it was too early to speculate on the exchange rates cryptocurrency exchanges may establish against the P2P market noting cryptocurrency exchanges must be operational before determining rates. Obtaining the necessary regulatory license from the Security Exchange Commission (SEC) to open bank accounts has posed a hurdle for them till now. Coincidentally, Nathaniel Luz, co-founder and marketing head of Flincap, had earlier shared with Cointelegraph that Nigerian crypto-fiat exchanges and P2P traders will find themselves in a fierce competition for a foothold in the Nigerian market.
Published At
12/28/2023 2:52:59 PM
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