Central Bank of Nigeria Prohibit Banks from Processing Bitcoin & Cryptocurrency Transactions

  • The Central Bank of Nigeria in a circular released dated 5th, February, 2021 has prohibit banks and financial institutions from processing bitcoin and cryptocurrency related transactions.
  • According to the circular, Deposit Money Banks, Non-financial institutions and other financial institutions are no longer allowed to have anything to do with cryptocurrencies and other digital assets.  
  • The Apex bank also added that all accounts associated with crypto transactions should be closed. It warned that financial stakeholders who do not adhere to the directive will face stiff sanctions.

Nigeria’s social media react to CBN’s directive

  • The new directive has sparked bitter reactions by Nigerians on Twitter. Some twitter users have reported getting calls from their banks, threatening to flag their accounts if they continue to transact crypto with it.
  • Some have also seen it as a threat to the success of Nigerian youths. Olumide Adesina says that ” limiting crypto will never help the value of Naira. He adds that while other leading countries adopt crypto Nigeria is prohibiting it.
  • DJ Switch, popular Nigerian DJ, has seen the ban as a way of promoting poverty in Nigeria. She says “If the ban on crypto by CBN is true ehn, it points yet again to the ill informed, backward, poverty promoting dinosaurs T-Rex leading us. Use your time ⌚ to investigate and close accounts sponsoring terrorists in the country if you don’t know what to do!!! GAWD.
  • Bundle CEO, Yele Badamosi has also in the same vein, reiterated the mission of Bundle, which is to make crypto accessible for all and unlock economic opportunity for Africans. The company’s vision of  driving crypto adoption in Africa by making it more inclusive and useful will not be shielded by CBN’s new directive.

Flutterwave, Bundle, YellowCard Financial, Roqqu suspends Naira deposit.

Binance Nigeria gateway partners, Flutterwave will no longer support their customers with crypto-related services. In an email sent to its customers, the fintech company will no longer support crypto use cases in light of the recent directive by the CBN.

Bundle, YellowCard Financial and Roqqu have also suspended naira deposits. The exchanges are at the moment not taking naira deposits from customers.

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