Yesterday the central bank of Nigeria issued a circular banning all forms of crypto transactions within its jurisdiction. Note that Nigeria is the largest market for cryptocurrency in Africa making this announcement a big blow and a step back in the progress we have made thus far. What this means is any crypto exchange or related services operating within Nigeria is being asked to shut down business. Also, to add salt to injury, the apex bank directed banks and financial institutions operating within its jurisdiction to close the account of any crypto trader or someone involved in the cryptocurrency service industry. This comes after a previous directive that demands any dollar transaction from outside Nigeria should be made in US dollars, ensuring that a businessperson has to own a dollar account to enable international transfers.
It is my understanding that this measures are meant to curb the spate of internet fraud that has not only dented the country's image but has made it difficult for legitimate business people to do business outside the shores of the country. For instance, for a very long time, Paypal gives only limited access to Nigerian accounts. Nigerian accounts are allowed to receive payments from anywhere in the world but we can't withdraw into our bank accounts. This is what every freelancer has to deal with. At least we were used to it. The Central Bank has simply dropped the straw and this camel's back is broken indeed.
It was comfortable for those of us who have discovered the beauty of blockchain technology and its reward system for content creators. We could write and create to our heart's content and make some token from it. I have survived, and this is no lie, on crypto since 2017. This is three years of unemployment that has been salvaged through my posts on this platform amongst others. I have traded, received airdrops and delegations, all kinds of support through the blockchained enabled crypto space. To be denied such a space when nothing is being provided as an alternative is unfair.
Fraud is a terrible thing and due to crypto's unique structure that allows anonymous transactions, it has inadvertently enabled scam artists to escape the reach of the law. It is truly necessary to curb this situation now through proper policies well applied. Yet it is not right to throw away the baby with the bath water. Not everyone who carries out bitcoin or any alt transaction in Nigeria is a scammer. I am not a scammer.
As a content creator, my inability to deal with clients outside Nigeria where the better paying clients are ultimately leaves me and others like me at the mercy of the elements. Who would pay for our services in Nigeria? Are there projects in the making to provide a platform for freelancers to do business in Nigeria?
Apart from this, i find it wierd that the Nigerian government will ignore the possibilities that the blockchain tech offers them. The possibilities are numerous even if we move away from the financial instrument aspect of it. For instance, the beaucratic nightmare that is the Nigerian government can be eased if we have a central database that is secured by a blockchain protocol. Blockchain is open source and what has been stored in the chain cannot be removed even if it is edited at the frontend.
Imagine getting correct election results in real time with the inability to edit it. Imagine conducting a census without the numbers being edited to suit some political gambit. Imagine school results, government expenditures, project developments, etc., being protected from influence by the fundamental structure of blockchain technology. These are possibilities we must focus on. It is unfortunate the Nigerian government sees only the damage that cryptcurrency causes.
With the present situation, Nigerian blockchain enthusiasts and freelancers are shutout of the commonwealth of the world. While countries are looking for comfortable ways to apply the blockchain technology into their way of doing business and governing, the Nigerian government is shutting its doors to innovation, the biggest innovation in recent times. What can be done to salvage this situation then?
I understand that many cash transfer apps are no longer welcoming transfers to Nigeria. What can be done outside the country and within to ensure that even the unbanked populace can have access to funds from family, friends and business associates outside the country? The fact is the Nigerian banking industry is a rip off. It gives nothing and takes everything from you. Why would i do business with a Nigerian bank if i can get the same service they offer without all the fees they charge and the crappy service they offer?
I believe that it is time for those with the wherewithal to build financial institutions that stand outside the banking industry in its present sense. If a financial institution with a crypto wallet can accept crypto payments in exchange for fiat which can then be sent to a Nigerian account or can be received at any of the popular cash collecting counters like moneygram, worldremit and western union.
This seems like a covulated process but it can be simplified by sharper minds than mine. It is even possible to set up shop in a nearby African country. The money can therefore be transfered to say, Ghana, and from there, it can be sent to Nigeria in Naira, direct into the receiver's account. I don't know if this has been implemented or if it is feasible. I am not a financial or banking expert. I write great poetry and short stories.
If no solutions can be found, if the Central Bank of Nigeria does not retract its decision to frustrate creative writers and content creators to an early grave, then i am done for. As i write this, a project i should have started two weeks ago is on hold because my client cannot pay me. He is in Tokyo and i am yet to find a payment portal that will do the transaction between Japan and Nigeria. How will i survive then? Where are the jobs for a writer in Nigeria?
Please from the above you can detect that i am in dire straits. I need a way to access money outside Nigeria. I want to be a part of the revolution that crypto promises. I want to be able to do business with clients from different parts of the world. There must be a better way to catch scammers than destroying something that has been feeding young men and women who despite their education can't get jobs anywhere in the country they call home. Your thoughts will be most welcome. Good afternoon.
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Still digesting the damage this has done on Africa as a whole. I thought that ya'll have broken the ceiling and Africa finally gets to maneuver the cryptic world of crypto. The opportunities were far and beyond for you guys. For all of us as Africans. Truly Truly sorry Mwalim.
Though I have zero value to add on what you are looking for, I know of an app namely Chipper Cash that has been slowly conquering Africa with zero fees. It can help if you have a client in the UK or plan to send any money to a few countries in Africa. Check it out. I hope it will be useful if not now, somewhere in your future.
Thank you @tezmel 😍. I will check it out. Let us hope that this would encourage innovative ideas that will make financial instituitions and economists sit up and pay attention to the blockchain space.
P2p transactions
This is the only variable way. Major exchanges provide this option with some safety measures.
Crypto was designed for p2p transactions. Centralized exchanges do not align with the ethos of blockchain technology. So what the government has done is stir people in the right direction. Solutions are numerous.
So do your research. If your client in Tokyo has access to crypto they can simply send you usdt which you can exchange for fiat(naira).
Lastly, the ban has little to do with curbing crime. I strongly believe this. The CBN is clueless as they cannot regulate the
crypto industry. This should be left to the SEC to provide guidelines on how crypto exchanges conduct their affairs. Some of these exchanges go to great lengths to ensure that their customers are well accounted for via KYC. So I don't think this has anything to do with curbing fraud
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I agree that the CBN is clueless on how to regulate the crypto industry but that is the excuse they give and it seems plausible to anyone who doesn't understand what cryptocurrency and the blockchain industry can do. A lot of people do not know this.
I also agree that crypto was designed for p2p transactions but if you do not have means of changing crypto to naira or the options are limited, that defeats the purpose. exchanges do demand for identification i agree but when you have projects that ensure anonymous transactions of large sums and do not harp much of verfying accounts, what is there to do?
With regards to my client, he falls under the category of those who know of crypto but do not trust or do business with it. My issue on that side is the CBN directive that demands that transfers be made with US dollars rather than changing to naira which can be deposited directly into individual account. My attempts to get a payment gateway has met with difficulty. I have tried payoneer, transferwise, flutterwave, sendcash, worldremit, and so on to no avail. If he had agreed to a crypto transaction, i would be on that project by now.
I like that you see the positives in this directive by the CBN. I hope that it encourages the development of projects that solve the vaccum between crypto and fiat without the involvement of CBN regulated financial institutions. I have always been of the mind that there needs to be more projects built around blockchain that deals with other issues aside from being middlemen in transfering money from crypto wallet to bank accounts. If this will get the Nigerian blockchain community more invested in innovative ideas then i am all for it.
Thank you for your response. It is kind of you @nonsowrites.
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