- Despite the CBN's strict policies, Nigeria remains one of the leading countries in terms of cryptocurrency adoption
- In February 2021, CBN directed all banks to close the accounts of entities and individuals transacting in cryptocurrency
- Patricia a cryptocurrency payment solutions company is calling on CBN to have a discussion with players and find a way to play the role of a regulator
The growing popularity of cryptocurrency among Nigerians is connected to how many Nigerians feel about the government.
According to him, the knowledge on cryptocurrency subject grew in Nigeria immediately after the Central Bank of Nigeria issued a circular prohibiting commercial banks and other financial institutions from processing cryptocurrency transactions.
You will recall that on February 5, 2021, in a circular to banks CBN directed all financial institutions to close all accounts trading in cryptocurrency.
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Ogunwede is of the opinion that the decision despite its effect on the company (Patricia) when it was announced, the following months opened a new door, which include having to move to other countries(Estonia and now Lithuania).
"Following the ENDSARS protest, many young people were worried about depositing their money in banks and resorted to Cryptocurrency. However, this move metermaphosed into an investing adventure."
On CBN decision against cryptocurrency
Ogunwede during the Digital Talks interview also expressed surprise at the swift decision taken by CBN on cryptocurrency without trying to discuss with players in the industry to find a solution.
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Stressing that there is no reason why the government should fight against cryptocurrency when technology is evolving.
The Patricia CMO added:
"Cryptocurrency is a designed for wealth creation; when a government does not understand how things operate, that doesn't mean you have to cut it off; instead, you study and find a way to play a role as a regulator."
"In the United Kingdom, there is what is called a sandbox, if there is a new product, A company is permitted to perform a test on the products for at least 5,000 to 10,000 people before it is made public, and the government uses the research results to establish a policy for the public."
"I don't understand where this narrative of Cryptocurrency is untraceable, it is completely false, when in fact blockchain is constructed with transparency in mind. Patricia as a crypto company have in place a know your customers policy and there are companies dealing in tracking exchanges all over the world.
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Governor Okowo speaks on CBN's Clampdown on Cryptocurrency
Meanwhile, Governor Ifeanyi Okowa of Delta State has reacted to the handling of the tech market by the Central Bank of Nigeria (CBN) amid talks of a clampdown on innovation by President Muhammadu Buhari's administration.
Okowa said the government should also not be bossy towards the people it is leading and open a channel of discussion.
According to Okowa, the clampdown on technology businesses in Nigeria by the Central Bank of Nigeria is motivated by fear.