THE NIGERIAN GOVERNMENT'S REACTION TOWARDS CRYPTO

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Cryptocurrency is evolving overtime into a global scale economy, one that is motivated by technological innovations. Ever since the creation of Bitcoin in 2009,it has witnessed tremendous growth so far. Since the creation of the Bitcoin, many alternative coins or crypto have emerged each having its own unique features and usecases, for instance, Ethereum, ripple, Litecoin, hive etc. Also, the evolving of the crypto has allowed for what is called the decentralized finance system that allows users to explore the Blockchain technology by borrowing, selling and trading. It has grown so wide that many countries have adopted the use of crypto for payment of goods and services. Just like the hive backed dollar on the hive Blockchain that can be used to get a cup of coffee in some countries.

While some countries have open handedly embrace the activities of the cryptocurrency, some other countries are against it existence in their country. For instance, in Nigeria my country, cryptocurrency was banned by the central bank of Nigeria in 2021 on collaboration with the Nigerian government,when they ordered that financial institutions that is traditional banks should not partake in crypto exchanges or deal with any individuals involved with crypto. The ban as claimed by the CBN was based on several reasons which at some point were sensible but not enough to ban it as it serves as a source of income to some people.

Some reasons why it was banned back then was based on the facts that some people were using crypto to launder money, that politicians are using crypto to finance terrorism, risks and losses. This did not stop the people from engaging in cryptocurrency trading and it was carried out through alternative channels and peer-to-peer platforms. But a long time has come by and now we can this sentiments have changed a bit although, there are still mixed reactions from the government, they are trying to be cautious and at the same time wanting to harness the benefits of cryptocurrency.

So far, the Blockchain technology has been explored in Nigeria, some Fintech startup companies have used it to offer financial services and other areas to offer transparency and security. Although adoption 9f crypto is not in full session yet, but a good number of the population who are aware of it's potentials have invested and made profits from it. It has also helped to offer jobs to youth who trade and carry out crypto activities, one that the government could not offer.

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