Cryptocurrencies have proven to be a valuable monetary tool for the adult population in developing regions across the world who have limited access to traditional financial infrastructures.
Despite several warnings from the Central Bank of Nigeria (CBN) that cryptocurrencies such as Bitcoin are not legal tender, the use of Bitcoin in the country continues to grow rapidly, according to a report by The Punch.
In the 2019 edition of “The Nigerian Banker” Journal published by The Chartered Institute of Bankers of Nigeria (CIBN), the report noted that the CBN has made it clear that naira is the only legal tender in the country.
Th reports further revealed that around 41% of the new users of bitcoin last year were from African countries like Nigeria, Ghana, and Sout Africa.
The increased use of these digital currencies has been a major cause of concern to various financial institutions as they are changing global payment methods.
Although many countries around the world are now establishing a regulatory framework to regulate the cryptocurrency operations within their region, Nigeria is yet to create a guideline for its growing crypto space.
However, Chief Anthony Idigbe, the Senior Partner of Punuka Attorneys & Solicitors, in his report on “Legal issues in e-commerce” gave the CBN some suggestions regarding cryptocurrencies in the country.
“The CBN has to consider ways of applying its regulations to the new consumer behaviors of blockchain and cryptocurrency as there are new infrastructures of payment gateways that allow online/offline merchants to receive other modes of payment from the regular fiat currency such as cryptocurrency,” Chief Idigbe wrote.
“To improve recognition of credible e-commerce, the CBN can require payment gateways and merchant aggregators linked to an e-commerce site, to issue its merchants with a visible certificate badge,” he continued.
In September, the Nigeria Security and Exchange Commission (SEC), announced that it has set up a working committee to research and draft guidelines that will act as a regulatory framework for regulating the cryptocurrency and blockchain industry for the country’s capital market.