Nigerian Central Bank Orders Financial Institutions To Close Cryptocurrency-Related Accounts

Through a circular, the Central Bank of Nigeria has issued orders for the country’s financial institutions to put a closure on crypto-related bank accounts. CBN (the central bank of Nigeria) has continued to be hostile against the crypto assets such as Litecoin, Ethereum, Bitcoin, as well as others, and the respective instruction specifically signifies it.

CBN directs banks to stop crypto trading accounts

On 3rd November, a circular, being signed by J.Y. Mammanand (the director of its banking supervision), was released by the CBN in which the orders were issued for the commercial banks to stop the accounts of Nwaorgu Kingsley Chibuzor, Nnamdi Francis Okereke, and TVS Hallmark Service Limited because those have been indulged in the trading of cryptocurrency. As per Peoples Gazette (a native media house), the circular mentioned that the banks within the country are commanded to suspend the accounts of those consumers who take part in the activities related to crypto trading.

Formerly, the apex bank of Nigeria issued orders for finance-related organizations under the jurisdiction thereof to restrain from offering services regarding crypto transactions, or else they would have to face sanctions. But, notwithstanding the restriction, citizens of Nigeria are consistently utilizing crypto and count as the highest adopters of cryptocurrency across the world. The determination of the central bank to sanction defaulters was established through the emails posted to the commercial banks within the country. The mail required the identification of entities/persons indulged in the crypto transactions or running crypto exchanges under their premises and systems and guarantee of those accounts’ termination instantly.

“eNaira” project of Nigeria carries on to move swiftly

The CBDC project of Nigeria named eNaira, following the initial uncertainties, has been succeeded in completing over $113,000 (up to 40M naira) transactions with more than 400,000 wallets having been registered on the venue during the initial two weeks of the existence thereof. At the time when the project was being launched, Muhammadu Buhari (the president of Nigeria) had predicted that the coming ten years of the country’s economy would witness substantial gains by the “eNaira” project, which may accelerate above $29B. Although the launch of the project encountered a lot of hindrances, CBN’s technical collaborator Bitt Inc. has disclosed its intentions to initiate a mobile app to be utilized by the unbanked across the country.