Winners and Losers as the Central Bank of Nigeria Removes Ban on Cryptocurrency Transactions
In a major reversal, the CBN finally lifted the ban on cryptocurrency transactions in Nigeria! With Nigeria 🇳🇬 ranking no 2 in crypto adoption globally, and growth rate estimated at ~24% according to Statista, this move was inevitable.
What does this mean for stakeholders? Who are the winners & losers?
For INDIVIDUALS: I see a major shift with cross border transfers. If you can transfer say $20,000 equivalent in crypto (USDT for instance) at $1 fee in 15mins, why spend $150 and then wait for 3 days? 🤷🏽♂️ It makes absolutely no sense. With the increased ease, will come more crypto speculation, more millionaires, and more bankrupt people! It's inevitable that investment in cryptocurrency will soon start being benchmarked against traditional investment vehicles, and crypto will win - before the next crash 📉. We will see a shift in the investment climate.
For BANKS: The days of lording it over we poor folk with FX transfers are coming to an end. The banks will lose out with individuals in traditional USD transfers, but probably maintain that for institutions - for a while. Banks, being smart hawks, will however make up with commissions and the like. Last last, they'll be okay. Best part of this though is that it will bring lots of funds back into the mainstream and make it easier for the CBN to manage policy & regulation.
For CRYPTO PLATFORMS: I think crypto trading platforms e.g. Bitmama, Binance, Quidax, Patricia (if they can recover) etc will be the ultimate winners. With restriction lifted, activities on the platforms will become mainstream. That means more customers, more transactions, more commissions... 💰🪙💲 In addition to generating more revenues, they'll also find it easier to attract investors at higher valuations. I expect to see new startups and a renewed drive to raise funds in that industry.