Crypto Users in Nigeria React to the CBN’s Attack on P2P Accounts
- Nigeria ranks among the leading countries in terms of crypto adoption and interest in digital assets.
- Despite the CBN’s ban on crypto trading, Nigerians have relied on peer-to-peer transactions to send and receive funds.
- Flutterwave later denied the hack, noting that some users failed to activate recommended security settings.
Nigeria has one of the fastest-growing crypto communities in Africa and around the world. But this growth wasn’t served on a platter of gold. The Central Bank of Nigeria (CBN), the apex banking body in the country, has not made it easy for Nigerians to embrace crypto without fear of repercussions.
First, the CBN ordered local banks to close down accounts related to cryptocurrencies. However, Nigerians found a way to continue their Bitcoin romance by using peer-to-peer (P2P) exchanges. However, the CBN has begun a crackdown on P2P users in Nigeria, sparking widespread reaction from the crypto community in the country.
The CBN’s decision to flag P2P accounts is reportedly linked to a $6.3 million hack associated with Flutterwave, a financial service provider. Flutterwave reportedly noted that one of its customers had suffered a hack of almost $6.5 million (3 billion naira). A motion ex-parte was later filed and granted in support of Flutterwave’s report. Several P2P users have complained that their accounts have been frozen in relation to the hack.
Crypto users in Nigeria believe the CBN’s actions could discourage locals from adopting cryptocurrency. A concerned Nigerian crypto enthusiast complained that the ongoing actions against P2P users in Nigeria have affected several businesses.
Is CBN’s stance against crypto a mistake?
The CBN previously declared that the ongoing ban against crypto activities is intended to reduce criminal behavior and risky investments. In addition, the apex financial institution stated that other central banks and international financial organizations have issued warnings against the use of cryptocurrencies.
But many Nigerians believe the decision is a huge mistake. Nigerians rely on crypto as a hedge against the inflation-hit naira. Although Nigerians have found ways around the ban, some believe the CBN’s policy would set the nation back in the global race to embrace digital assets.
The CBN has gone on to release the e-naira, a digital version of the naira. However, Nigerians are yet to show support for the digital naira and have instead stuck with using crypto for their transactions.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
