Nigerian crypto players may be early adopters of central bank ban – analyst

Ahead of the lifting of the ban on digital assets for Nigerian banks and financial institutions on December 23, Crypto players who have joined forces with the Central Bank of Nigeria (CBN) will be in a better position to lead the industry in the future, according to financial expert Olumide Adesina.

In an interview with Cointelegraph, Adsina said that those who met with regulators and the CBN during the ban were the top winners and could be the early gatekeepers for the industry.

He added that Nigerian cryptocurrency players who have been active with regulators have had great success lobbying the central bank to loosen its previous stance.

Adesina pointed out that the CBN's recent circular announcing the lifting of the ban was the right move. With a renewed focus on financial stability, the central bank aims to open up the country's financial ecosystem to digital securities approved by the local regulator, he said.

The biggest lesson in the crypto industry is that players who engage with regulators and CBNs are the biggest winners, and perhaps the early gatekeepers.

— Olumide Adesina (@olumidecapital) December 28, 2023

Responding to whether the lifting of the ban will affect Nigerian crypto exchanges and peer-to-peer (P2P) merchants, Adesina highlighted that the price action on NGN / USDT, a popular stablecoin, confirms the warm activity despite the recent increase in holders such as altcoins. They reassess their strategy for these stablecoins.

However, Adesina said the new stablecoin, which will be launched by a collaboration of banks and local fintech companies, will have a major impact on the P2P market and expand the country's financial system.

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Nigeria is currently the largest P2P market in the world, a direct result of the 2021 CBN ban. However, P2P transactions were fetching higher rates than regular foreign exchange rates.

Adesina said it would be premature to try to predict the value of crypto exchanges in transactions with the P2P market. He pointed out that crypto exchanges should be operational before rates are determined.

However, it has been challenging to open bank accounts for crypto exchanges due to the regulatory approval requirement of the Securities Exchange Commission (SEC).

Earlier, Flinkap Co-Founder and Chief Marketing Officer Nathaniel Luz told Cointelegraph that Nigerian crypto-fiet exchanges and P2P merchants will have to fight for the Nigerian market.

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